New York, NY -- (SBWIRE) -- 11/02/2018 -- Asia's appetite for chocolate continues to increase, paving potential avenues for cocoa powder across emerging countries such as China and India. Against this backdrop, grinding of cocoa has risen significantly in 2018. Cocoa Association of Asia reveals that Asia is set for a continuous and strong demand for cocoa powder in the coming years, based on a +7.21% increase in cocoa grinding in Q1 of 2018 over Q1 of 2017.

First three quarters of 2018 have revealed a stellar growth in cocoa grinding with a positive year-over-year change reflecting +15.24% and +3.70% in Q2 and Q3 of 2018 over 2017 and the coming quadrant is set to a renascent consumption of cocoa, according to Cocoa Association of Asia. Demand for cocoa has picked up speed in Asia, with countries such as China, Indonesia and India demanding significant amounts of cocoa powder for various products including ice cream and cookies.

The information presented in this article is based on research study by Fact.MR on Cocoa Powder Market. A Sample is available upon request.

Cocoa Powder Demand-Supply Scenario in China to be on an Upswing

On per capita basis, consumption of chocolate in China has plenty of room for growth as compared to global consumption. Dometic chocolate sector in China has witnessed huge boost in sales with top international chocolate producers tapping the Chinese land. Premium chocolate demand, especially the dark chocolate category is on the rise. This has resulted in an increasing use of cocoa powder in China since the past couple of years.

Additionally, mature yet major cocoa producing regions are seeking investments and turning to Asian countries seeking growth avenues. In May 2018, Ghana Cocoa Board secured a US$ 35 million from China to build a new cocoa processing plant and is further seeking additional US$ 1.5 billion to support its cocoa production. Major producers of cocoa such as Ghana have been eying the Asian chocolate market on the back of its increasing lucrativeness and volatility of cocoa prices on the global front. According to the World Integrated Trade Solution data, China is a top import and export partner of Ghana.

West Africa is suffering from challenges apropos to land limitation and climate change, according to World Bank analysis. This has largely impacted production cocoa in the region, causing higher tension for chocolate makers as demand for cocoa rises by 2% per year. However, Asian countries being well suited for cocoa production are picking up the slack, with governments in countries such as Indonesia, Malaysia and Vietnam are focusing on concentrating on cocoa powder production to cater to the growing chocolate market.

Surging Cocoa Grind in Asia Catching Attention of Chocolate Makers – Emerging Markets Showing Signs of Growth
According to ICCO (International Cocoa Organization), Asia and Oceania's contribution in the global cocoa grinding was 22% in 2017-2018, more than that in Africa (22%). The significant 15% surge in cocoa grind in Asia has attracted several international chocolate makers, which in turn has embossed a positive impact on the Asian cocoa powder demand.

Emerging markets are showing substantial demand for cocoa powder, which is largely used in confectionary items such as biscuits and ice creams. Demand for cocoa liquor and butter to make chocolate bars is another prospective area that is witnessing tremendous boost in emerging economies in Asia. This has further pushed the cocoa processing margins, offering stakeholders and cocoa powder producers potential avenues for growth.

Pricing Challenges Permeate the Cocoa Production Sector in India, Likelihood of Chocolate Price Rise
Cocoa powder prices rose by around 28 percent in 2017 with a likelihood of further increase on the back of rising crisis in West Africa, according to International Cocoa Organization. The rise is reflected in Indian cocoa powder price that has increased by 6% since past few months in 2018, reaching INR 170 per Kg. This price swell is likely to impact the chocolate production, resulting in a higher probability of rising chocolate prices. However, uncertainty remains whether it would negatively impact the cocoa powder demand in India and other emerging nations in the coming year.

In addition to the growing chocolate industry in Asia, sales of cocoa powder in cosmetic applications continue to witness a steady rise. Albeit little clarity in terms of growth influence of the cosmetic sector on cocoa powder demand, this factor cannot be completely neglected, particularly when organic cocoa powder comes into play