Cocoa is defined as an edible power obtained from cocoa beans which is rich in polyphenols and theobromine. Chocolate, on the other hand, is defined as an edible paste, which is formed by roasting and grinding cocoa seeds. Chocolate is nutritional and is a strong source of antioxidants. Both cocoa and chocolate can add flavour to the food products, making them delicious with enhanced textures. The increasing application of the products in the food and beverage industry is driving the market.

Cocoa beans are harvested, dried and fermented from Theobroma cocoa and further processed for the manufacture of powdered cocoa, oil, liquor, butter and other cocoa products. In the manufacture of chocolates, cocoa is commonly used. Owing to the high content of flavonoids, they have multiple health benefits that decrease the risk of cardiovascular disease. Chocolates and cocoa are the two by-products of Theobroma cacao, the cocoa tree. Cocoa beans are extracted and then roasted, fermented, grounded and converted into a finite paste, which is then used for the production of cocoa or chocolates. Due to the process where the cocoa butter is extracted from it during processing, natural cocoa is darker in colour and tastes bitter. Chocolates, on the other hand, undergo the same processing as chocolate.

Chocolates have a special relationship with everyone. It has a delicious taste that no one can describe. It is a magic, when you look at it, hear about it, smell it and taste it. Chocolate not only appeals to the senses; it has a variety of beneficial ingredients that may do everything from lifting your mood to helping your heart. 

The increasing demand for cocoa powder in dairy, bakery and confectionary, ice-cream, and beverages, among others, is adding to the market growth. The rising population, rapid development of supermarkets and convenience stores, and inflating disposable income are fuelling the demand for these food products. In addition, the innovation in flavours and improving product innovations are bolstering the popularity of cocoa and chocolate.

Based on type, the cocoa market has been segmented into cocoa butter, cocoa powder, and cocoa liquor. Cocoa butter is anticipated to hold the largest market share in 2022, followed by cocoa powder, and cocoa liquor. Cocoa butter and cocoa powder are obtained from cocoa liquor. White chocolate primarily uses cocoa butter for its taste, whereas cocoa powder is widely used in dark chocolates. While cocoa butter is used in white chocolate and pastries, cocoa powder has its applications in food and beverage industry.

The cocoa market attained a value of around US$ 16.86 billion in 2021. The market is further expected to grow at a CAGR of 4.6% in the forecast period of 2022-2027 to reach a value of approximately US$ 22.45 billion by 2027. The chocolate market attained a value of US$ 113.12 billion in 2021 which is further estimated to grow at a CAGR of 5.2% in the forecast period of 2022-2027 to reach a value of US$ 152.57 billion by 2027. The rising consumption of chocolate is closely linked to the high demand for cocoa and chocolate in confectionery, food & beverages, cosmetics, pharmaceuticals and other industries.

The thriving e-commerce industry has a major role to play in the global cocoa and chocolate market. Online platforms are easily accessible now days with rapid adoption of smartphones and computers, leading to a heightened sales of downstream chocolate beverages, ready-to-eat chocolate products.

The cocoa products in the market include cacao liquor, cocoa butter, and cocoa powder, while chocolate products are available in the form of dark, white, milk, filled chocolates. In the preparation of hot chocolate drinks, cookies, and other bakery items, cocoa powder is used. On the other side, chocolate is valued both as a special drink and as a medicine. From the perspectives of confectionery manufacturers, the cocoa & chocolate market is a rewarding market. It is likely that product developments will play a key role in growing the share of market players. This is due to people around the world's growing affinity for packaged food and confectionery.

Over the forecast period, the demand for cocoa and chocolate is expected to witness a steady growth owing to the increasing awareness about the health benefits offered by them. Dark chocolate is a popular product which reduces blood pressure and improves the heart health. Hence, the increasing inclination of working adults towards healthy beverages and food products is likely to improve the market dynamics in the forecast period.

Chocolate provides some remarkable skin benefits which makes it applicable in the cosmetics industry. Chocolate is anti-ageing, skin detoxifier, and improves facial glow. Therefore, the growing research and development activities and product innovations in the personal care and cosmetics sector are expected to improve the demand for cocoa and chocolate in the coming years.

Some of the major key players include Barry Callebaut AG, Cargill Incorporated, Nestlé S.A., Olam Food Ingredients (ofi), Cocoa Processing Company Limited (CPC), Mondelez International, Inc., and Meiji Holdings Co., Ltd., among others.