Global Cocoa Butter Equivalent Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Cocoa Butter Equivalent Market Analysis

The cocoa butter equivalent (CBE) market is experiencing significant growth, driven by advancements in fat processing technologies and sustainable sourcing methods. One notable development is the use of enzymatic interesterification, a process that modifies the molecular structure of fats to closely resemble cocoa butter. This method enhances the texture and melting properties of CBE, making it a viable substitute for cocoa butter in chocolate production.

Furthermore, advances in sustainable palm oil and shea butter sourcing are contributing to the market's growth. By improving traceability and reducing the environmental impact of raw material procurement, companies are meeting increasing consumer demand for ethical products. Technologies such as blockchain are also being used to ensure transparency in the supply chain, enhancing consumer trust. As a result of these advancements, the CBE market is projected to grow rapidly, particularly in the food and cosmetics industries. The rising cost of cocoa butter, coupled with CBE's cost-efficiency and growing applications, is boosting its adoption, especially among manufacturers seeking to maintain product quality while reducing costs.

Cocoa Butter Equivalent Market Size

The global cocoa butter equivalent market size was valued at USD 1.19 billion in 2023 and is projected to reach USD 1.64 billion by 2031, with a CAGR of 4.06% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Cocoa Butter Equivalent Market Trends

“Growing Demand for Plant-Based Alternatives”

One significant trend driving the growth of the cocoa butter equivalent (CBE) market is the increasing demand for plant-based alternatives in the food industry. As consumers seek healthier and more sustainable options, CBEs derived from non-tropical oils such as shea butter, palm oil, and illipe butter have gained traction. These alternatives offer similar properties to cocoa butter, making them ideal for use in chocolate and confectionery products. For instance, companies such as Cargill are actively promoting their plant-based CBEs to meet the rising demand for vegan and ethically sourced ingredients, enhancing market growth. This shift aligns with the broader plant-based food trend globally.

Report Scope and Cocoa Butter Equivalent Market Segmentation    

Cocoa Butter Equivalent Market Definition

Cocoa Butter Equivalent (CBE) refers to vegetable fats that mimic the physical and chemical properties of cocoa butter, used in the chocolate and confectionery industry. Made from natural oils such as palm oil, shea butter, or sal fat, CBEs are designed to blend seamlessly with cocoa butter without altering the taste or texture of chocolate. They are often used to reduce production costs, as they are cheaper than cocoa butter, while maintaining product quality. CBEs also help stabilize chocolate, making it more resistant to heat, and are commonly used in the manufacture of chocolate coatings, fillings, and compound chocolates.

Cocoa Butter Equivalent Market Dynamics

Drivers

• Growing Demand for Chocolates

The rising chocolate consumption, especially in emerging markets such as Asia-Pacific, is significantly boosting the demand for cocoa butter equivalents (CBE). As disposable incomes grow, consumers in countries such as China and India are increasingly indulging in chocolate products. CBEs, which offer a cost-effective alternative to cocoa butter, help manufacturers cater to this growing demand while managing production costs. For instance, Barry Callebaut, a major player in the chocolate industry, has expanded its presence in Asia, utilizing CBEs to produce high-quality yet affordable chocolates. The increasing preference for chocolate products in these regions is expected to propel the CBE market's growth.

• Expansion of the Confectionery Industry

The global expansion of the confectionery industry, particularly in developing regions such as Asia-Pacific and Africa, is significantly driving the demand for cocoa butter equivalents (CBEs). As consumers in these regions seek affordable chocolate products, manufacturers are increasingly turning to CBEs as a cost-effective alternative to cocoa butter. For instance, In October 2023, KTC Edibles, a prominent supplier of edible oils in the U.K., has unveiled Planet Palm, a new line of palm oil products that are certified sustainable, traceable, and produced with environmentally responsible practices. This range is specifically aimed at food producers across the U.K., allowing them to incorporate sustainably sourced palm oil into their products while adhering to growing consumer demand for ethically produced ingredients.

Opportunities

• Technological Advancements in Fats Processing

Recent advancements in fat processing technologies, particularly in crystallization and fractionation, have significantly enhanced the quality and performance of cocoa butter equivalents (CBEs). These innovations allow manufacturers to achieve desired melting profiles and texture characteristics, making CBEs more appealing for confectionery applications. For instance, In December 2020, Bunge Loders Croklaan launched a groundbreaking product called Karibon, a 100% shea-based cocoa butter equivalent (CBE). This innovative product helps food manufacturers meet consumer demand for healthier and more sustainable options while maintaining taste and quality. Karibon boasts a higher concentration of stearic acid and lower levels of saturated fats compared to traditional cocoa butter and other CBEs, making it an attractive choice for health-conscious brands.

• Health and Wellness Trends

The rising health and wellness trend presents significant opportunities for the cocoa butter equivalent (CBE) market. Health-conscious consumers are actively seeking healthier food alternatives, driving manufacturers to innovate and offer CBEs, particularly those sourced from sustainable materials such as palm oil. These alternatives not only mimic the nutritional profiles of traditional cocoa butter but also provide a cost-effective solution for chocolatiers. Additionally, as consumers become more aware of ingredient sourcing, the demand for sustainably produced CBEs is expected to grow. This shift encourages companies to develop new product lines that align with consumer preferences for healthier and environmentally friendly options, enhancing market growth.

Restraints/Challenges

• High Cost of Raw Materials

The cocoa butter equivalent (CBE) market is significantly hindered by the high cost of raw materials, such as palm oil and shea butter. These ingredients are essential for producing CBEs but are often expensive and subject to price volatility due to factors such as climate change, geopolitical instability, and varying agricultural yields. Such fluctuations can lead to increased production costs, squeezing profit margins for manufacturers. As a result, businesses may struggle to maintain competitive pricing in the market, limiting their ability to expand. Consequently, these challenges can impede overall market growth and deter new entrants, creating a challenging environment for CBE producers.    

• Competition from Alternatives

The cocoa butter equivalent (CBE) market faces significant competition from alternatives such as traditional cocoa butter and various vegetable fats. These alternatives often provide similar functionalities at lower prices, making them attractive to manufacturers and consumers seeking cost-effective solutions. For instance, traditional cocoa butter remains the preferred choice for many chocolate producers due to its established reputation and superior qualities. Additionally, other vegetable fats, such as palm oil and coconut oil, are increasingly used in confectionery products, further intensifying the competition. This scenario challenges CBE products to maintain market share, hindering their growth potential and limiting their acceptance in an already competitive landscape.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Cocoa Butter Equivalent Market Scope

The market is segmented on the basis of product type and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Kokum Butter
• Mango Butter
• Palm and Palm Kernel Oil
• Sal Fat
• Shea Butter

Application

• Confectionery
• Cosmetics
• Food and Beverage
• Others

Cocoa Butter Equivalent Market Regional Analysis

The market is analysed and market size insights and trends are provided by country, product type and application as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA)

Europe is expected to dominate the cocoa butter equivalent market due to the prevalence of branded confectionery manufacturers and the increasing consumption of chocolate in the region. This trend is driven by a rising consumer preference for high-quality chocolates and innovative products. Additionally, the region's strong distribution channels and marketing strategies further support growth, solidifying Europe's position as a key player in the cocoa butter equivalent sector.

Asia-Pacific is expected to grow in the cocoa butter equivalent market during the forecast period due to rising chocolate consumption and the expanding food and beverage sector. The region hosts numerous chocolate manufacturers, driving demand for cocoa butter equivalents as a cost-effective substitute. Additionally, changing consumer preferences towards healthier options and sustainable ingredients further contribute to the market's growth in this region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Cocoa Butter Equivalent Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Cocoa Butter Equivalent Market Leaders Operating in the Market Are:

• 3F GROUP (India)
• AAK AB (Sweden)
• Cargill, Incorporated (U.S.)
• FUJI OIL ASIA PTE. LTD. (Singapore)
• Bunge Loders Croklaan (Netherlands)
• Manorama Industries Limited (India)
• Mewah Group (Singapore)
• INTERCONTINENTAL SPECIALTY FATS SDN. BHD. (Malaysia)
• Olam International (Singapore)
• Wilmar International Ltd (Singapore)
• Musim Mas (Indonesia)
• FGV IFFCO SDN BHD (Malaysia)
• ADM (U.S.)
• Makendi WorldWide (U.S.)
• EFKO Group (Russia)
• Mallinath Group (India)
• USHA INTERNATIONAL (India)
• Wild Oils (Australia)
• GEF India (India)
• PT. WILMAR CAHAYA INDONESIA (Indonesia)

Latest Developments in Cocoa Butter Equivalent Market

• In February 2024, SheaMoisture has launched its inaugural deodorant collection, featuring six antiperspirants and two full-body deodorants tailored for individuals with higher melanin levels in their skin. Developed in collaboration with Black dermatologists, these products address specific concerns, including enhancing skin tone, moisturizing, and promoting smooth skin texture. Additionally, they offer effective protection against body odor and sweat, catering to the unique needs of their target demographic
• In February 2022, AAK AB announced a significant investment of approximately USD 54.7 million to install biomass boilers at its manufacturing facility in Aarhus. This initiative is expected to dramatically reduce CO2 emissions by up to 90%. The biomass boilers will utilize shea meal, a byproduct of shea-based food production, contributing to AAK’s commitment to sustainability and environmental responsibility within the food industry
• In June 2021, AAK has expanded its product offerings by providing cocoa butter substitutes made from shea butter to Mars for use in chocolate and confectionery products. This innovation not only meets the industry's need for high-quality alternatives but also emphasizes the versatility of shea butter. It serves as a sustainable option for manufacturers seeking to enhance their products while addressing consumer preferences for health-conscious ingredients

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