Rising application Cocoa Butter Equivalents in confectionery and bakery industry will boost the Cocoa Butter Alternatives market growth

Published On: April 2018

Global Cocoa Butter Alternatives Market– Trends and Forecast till 2023

The rising prices of cocoa butter and growing preference for healthy and effective alternatives has led to many companies looking for cocoa butter alternatives. Cocoa butter which mainly used to give chocolate its fatty texture and glossy appearance. Nevertheless, application of cocoa butter alternatives in bakery and confectionery products is becoming popular. Cocoa butter alternatives fall into three categories – cocoa butter equivalents (CBEs), cocoa butter substitutes (CBS), and cocoa butter replacers (CBRs). Cocoa butter can be substituted by various other vegetable fats, The first group is the cocoa butter equivalents (CBEs),Cocoa butter alternatives are lauric, and non-lauric fats have similar physicochemical properties as cocoa butter and are therefore suitable with cocoa butter. Cocoa butter alternatives are used for partial replacement of cocoa butter in chocolate.

Fate of Cocoa Butter Alternatives in the Global Market

The global market for cocoa butter alternatives has been experiencing high demand for the last few years and is projected to reach USD 1,255 million by 2023. Top 20 chocolate-consuming countries in the world are part of the European region which makes it key market and contributor in the global chocolate market. In case of cocoa butter alternative, Europe holds only 9.41% of the market share in the year 2017 as the use of vegetable fats is regulated by the EU Directive 2000/36/EC relating to cocoa and chocolate products intended for human consumption.

North America region will continue to dominate the cocoa butter alternatives with more than 41% of market share in the year 2017. However, Canada will witness a higher growth rate of 10.42% during the forecast period. Asia Pacific cocoa butter alternatives market is the fastest growing region with 9.85% due to increased contribution of Malaysia and India.

Market share of Cocoa Butter Alternatives Value by Type in 2017

Cocoa butter equivalents (CBEs) are non-lauric fats with similar physicochemical characteristics as cocoa butter. They are compatible with cocoa butter in every amount without altering the properties of cocoa butter. They can be subdivided as Cocoa Butter Extenders (CBEXs) and Cocoa Butter Improvers (CBIs). Cocoa butter replacers (CBRs) are non-lauric fractions of hydrogenated oils such as palm, soybean, cotton, corn, peanut, safflower and sunflower oil. They are hydrogenated either alone or as a blend under selective conditions to be used as a replacer of cocoa butter (CB) and holds the market share of 13.85% in the year 2017. Cocoa butter substitutes (CBSs) contains a large amount of lauric acid and a considerable amount of myristic acid in a definitive ratio. They are generally prepared from palm kernel or coconut oil or both by means of fractionation and hydrogenation methods. Palm kernel oil is more useful than coconut oil because it has a higher content of oleic acid and a lower content of short-chain fatty acids. CBS will witness a growth rate of 7.53% during the forecast period.

Significant contribution from North America region

Key player’s inclination towards an alternative for cocoa butter is rising in North America region which is creating a huge impact on demand for cocoa butter alternatives market growth from last few years. The rise of chocolate industry in developed countries has also triggered the demand for cocoa butter alternatives. In North America, Cocoa butter equivalent (CBE) holds a major market share of more than 75% in the year 2017. More than 50% of cocoa butter equivalents are made from Shea butter as Shea butter has a higher melting point compared to cocoa butter and coconut oil and tends to be a little harder. In next five years, cocoa butter alternative market in Canada will grow at the rate of 10.42% due to increasing application of chocolate in bakery and confectionery industry.

Cocoa Butter Alternatives Market Analyst View

Majority of chocolate and chocolate products contains about 20% of cocoa butter, so confectionery manufacturers in Asia and Europe region are looking to find a substitute for cocoa butter. The market for cocoa butter alternative is highly influenced by rising prices of cocoa butter and government regulation, especially in the European countries. Growth in processing capacity in West Africa and South East Asia is playing a key role the market for exotic fats, especially Shea. CBE processing capacity is also growing in Turkey, Malaysia, and Russia which will boost the market growth in upcoming years. Ghana, Nigeria, Mali, Burkina Faso and other African countries will contribute in the supply of Shea for cocoa butter equivalent manufacturers. India will control the sal, kokum & mango kernel supply whereas Indonesia and Malaysia will become major sources for Illipe and palm kernel stearin across the globe.