News of Organic Industry
The certified organic cocoa market represents a very small share of the total cocoa market, estimated around 0.5% of total production. However, according to MedGadget the demand for organic cocoa products are growing at a very strong pace, the supply side faces a strong challenge to meet the demand of organic cocoa. Since, farmers are paying ample amount for producing organic cocoa, production of organic cocoa is more in least developed countries. Demand for organic cocoa products are very high in U.S, U.K and Germany, hence organic cocoa are supplied to developed economies of North America and Western Europe to manufacture organic cocoa products. Currently, Dominican Republic is dominating the organic cocoa market in terms of production that holds around 70 percent of the total market share; Peru, Ecuador and Mexico together hold around 20 percent of the market share in terms of production; rest around 10 percent is held by Bolivia, Ghana, Brazil and others.
Chocolate is the main application of organic cocoa which is the main growth driver of organic cocoa market. Also, the organic cocoa market is expected to be largely driven by the health consciousness among consumers. However, lack of proper supply of organic cocoa restrains the global organic cocoa market which also leads to increase in price of organic cocoa. There is a huge opportunity in the North America and Western Europe and Japan. Asia Pacific excluding Japan is an untapped market which is also a potential market for organic cocoa. This is attributed to increasing inclination of consumers towards organic products, rapid urbanisation, strengthening supply chain for organic cocoa and rising health consciousness among consumers.
Tags: organic cocoa , cocoa market