Due to the potential demand for chocolate from various industries, the worldwide Cocoa Butter Alternatives Market is expected to grow at a CAGR of 6.91% By 2028

Market Research Future has published a report on the Global Cocoa Butter Alternatives Market, 2021–2028. The global Cocoa Butter Alternatives market is projected to exhibit a CAGR of 6.91% during the forecast period of 2021 to 2028.

Market Research Future has recognized the following companies as the key players in the global Cocoa Butter Alternatives market: Nisshin OilliO Group, Ltd. (Japan), Fuji Oil Holdings, Inc. (Japan), Cargill, Incorporated (US), Bunge Ltd. (US), Wilmar International Ltd. (Singapore), AAK AB (Sweden), 3F INDUSTRIES LIMITED(India), Felda IFFCO Sdn. Bhd. (Malaysia), Musim Mas (Singapore), and The Mewah Group (Singapore).

Cocoa Butter Alternatives Market Highlights

The global Cocoa Butter Alternatives market is projected to be valued at USD 1,571.25 million by 2028, recording a CAGR of 6.91% during the forecast period. The market growth can be attributed to the declining production of cocoa beans in Africa. So, chocolate manufacturers are opting for alternative products, which accelerate the growth of the global market. However, stringent regulations in several countries are expected to hinder the growth of the global cocoa butter alternatives market during the forecast period.

Segmental Analysis

The global market has been segmented based on the type, source, application, and region.

Based on type the global Cocoa Butter Alternatives market has been segmented into cocoa butter equivalents, cocoa butter replacers, and cocoa butter substitutes. 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. The cocoa butter equivalents segment accounted for a market share of 78.27% of the global Cocoa Butter Alternatives market in 2020.

Based on the source, the global Cocoa Butter Alternatives market has been segmented into shea, Sal, Kokum & Mango Kernel, Illipe & Palm Kernel Stearin, and Others. The shea segment accounted for a larger market share of 60.37% in 2020. Shea butter is also known as Karite butter or Galam butter. It is obtained from the nuts of the tree Butyrospermum parkii. Fractionation is performed to produce CBEs. After the fractionation step, refining needs to be done before it can be used as a CBE. Shea butter is widely used in cosmetics, health products, and in the confectionery and chocolate industry. Shea butter and its fractions can also replace edible vegetable oils or fats, used for different food applications.

Based on application, the global market has been segmented into Bakery & Confectionery, Dairy & Frozen Desserts, Sweet & Savory Snacks, Dips, Sauces, & Dressings, and Others. In terms of value, the bakery & confectionery segment accounted for the largest market share in 2020. Cocoa butter alternatives are widely used in bakery applications and coatings to provide unique colors and flavors. They are used for mousses, creams, icing, fillings, and sandwiching for contemporary cakes, single portions and mignon pastries, sponge cakes, baked products, and biscuits. Changing consumer habits, tastes, and preferences have led to innovation in confectionery that drives the global market growth.

On the basis of region, the global Cocoa Butter Alternatives market has been categorized as North America, Europe, Asia-Pacific, and the Rest of the World. As per MRFR analysis, North America accounted for a 40.99% market proportion in the global market. The market in the region is projected to expand at a CAGR of 7.00% during the forecast period. Growth of application industries such as food & beverages and personal care is a prominent determinant driving the market growth of North America cocoa butter alternatives market. Surging demand for chocolate and baked products is boosting the sales of cocoa butter alternatives as they are cheaper and abundantly available. Decline in the production of cocoa beans, resulting in the supply decline of cocoa butter, is propelling the market players in North America to opt for various cocoa butter alternatives such as shea butter, palm oil, coconut oil, and others. Asia-Pacific holds a market share of 28.82% of the global market in 2020. 

Expansion of numerous food & beverages and personal manufacturers in the region is expected to boost the sales of the regional market. China, Japan, and India are the major country-level markets contributing to the growth of the regional market. In 2020, these countries accounted for a cumulative market share of 76.81% of the Asia-Pacific market. Surging prices of cocoa butter is favoring the demand of cocoa butter alternatives in Asia-Pacific. Europe accounted market share of 18.84% of the global Cocoa Butter Alternatives market in terms of value in 2020. The regions notable market share can be attributed to the presence of prominent confectionery companies in the region such as the Ferrero Group, Nestlé SA, Chocoladenfabriken Lindt & Sprüngli AG, and Pladis amongst others. According to data cited by the International Cocoa Organization (ICCO), based on the net confectionery sales value, the above-mentioned players accounted for nearly 33% of the revenue share garnered by the top ten players in the global confectionery market. Majority of chocolate manufacturers in Europe prefer cocoa butter over its alternatives due to the inability of some alternatives to perform the same function as cocoa butter. The regional market is expected to register the lowest CAGR during the forecast period owing to the ambiguity among the chocolate manufacturers regarding the quality of chocolate made from cocoa butter alternatives. 

The market in the Rest of the World consists of South America and the Middle East & Africa. The market in the rest of the world accounted for an 11.35% market share in 2020 and is projected to register a growth rate of 6.64% during the forecast period. South America accounted for a 56.38% share of the Cocoa Butter Alternatives market in the rest of the world in 2020. Inclination of chocolate, confectionery and bakery manufacturers in the Middle East towards cocoa butter alternatives to provide a creamy texture and enhance flavor of their product, along with the hike in the prices of cocoa butter are driving the regional market growth.

Key Findings of the Study:

• The global Cocoa Butter Alternatives market is projected to register a growth rate of 6.91% from 2021 to 2028.


• The cocoa butter equivalents segment is estimated to retain its prominent share till 2028 and it is projected to record the highest CAGR of 7.14% during the forecast period.


• The shea segment is estimated to retain its dominant share till 2028 and it is estimated to register the highest growth rate of 7.30% during the forecast period.


• The bakery & confectionery segment accounted for a larger market share of 65.55% in 2021, whereas the dairy & frozen desserts segment is expected to record the highest CAGR of 7.23% during the forecast period.