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Cocoa price index
This post is a summary of the Cocoa price index developments since 2005 as per the IMF. The developments are expressed as an index and not in absolute terms. Therefore the Cocoa price index means that the values provided are relative to Jan 1 2019 which is defined as 1.00.
Further information on the Cocoa price index
What is cocoa
Cocoa is a tropical tree that is native to Central and South America. It is grown for its seeds, which are used to produce cocoa beans. Cocoa beans are the main ingredient in chocolate, as well as a variety of other products, including cocoa powder, cocoa butter, and cocoa liquor.
Cocoa trees are small and evergreen, with leathery leaves and small, fragrant flowers that grow directly from the trunk and branches. The flowers produce pods, which contain 20 to 60 cocoa beans each. The pods are harvested by hand and the beans are extracted and fermented to develop their flavor. The fermented beans are then dried, roasted, and ground to produce cocoa liquor, which is the base for chocolate and other cocoa products.
Cocoa is an important agricultural commodity and is grown in many tropical countries, including West Africa, South America, and Asia. The largest producers of cocoa are the Ivory Coast and Ghana, which together account for more than half of global production. Cocoa is an important source of income for millions of small farmers and their families. However, the production of cocoa can be labor-intensive and has been linked to issues such as child labor and environmental degradation.
Which countries produce cocoa
Cocoa is grown in a number of tropical countries around the world, with the majority of production concentrated in West Africa. According to the International Cocoa Organization, the top five cocoa-producing countries in 2020 were:
Ivory Coast
This country was the largest producer of cocoa in 2020, with an estimated output of 2.2 million metric tons.
Ghana
Ghana was the second-largest producer of cocoa, with an estimated output of 1.9 million metric tons.
Indonesia
Indonesia was the third-largest producer of cocoa, with an estimated output of 1.2 million metric tons.
Nigeria
Nigeria was the fourth-largest producer of cocoa, with an estimated output of 575,000 metric tons.
Cameroon
Cameroon was the fifth-largest producer of cocoa, with an estimated output of 506,000 metric tons.
Other significant cocoa-producing countries include Brazil, Ecuador, and Vietnam. Overall, West Africa accounts for more than 70% of global cocoa production, with the Ivory Coast and Ghana being the two largest producers.
What is cocoa used for
Cocoa is primarily used to produce chocolate, as well as a variety of other products, including cocoa powder, cocoa butter, and cocoa liquor.
Chocolate
Cocoa beans are the main ingredient in chocolate, which is made by grinding cocoa beans into cocoa liquor and mixing it with sugar, milk, and other ingredients. Chocolate is a popular food product that is consumed all over the world.
Cocoa powder
Cocoa powder is made by grinding cocoa beans and removing most of the cocoa butter, leaving a dry, powdery substance. Cocoa powder is used in the production of chocolate, as well as in baking and as a garnish for desserts.
Cocoa butter
Cocoa butter is a pale-yellow, edible fat that is extracted from cocoa beans. It is used in the production of chocolate, as well as in cosmetics and personal care products.
Cocoa liquor
Cocoa liquor, also known as cocoa mass, is a thick, dark paste that is made by grinding cocoa beans. It is used in the production of chocolate, as well as in the production of cocoa butter and cocoa powder.
Overall, cocoa is an important agricultural commodity that has a wide range of uses in the food, cosmetics, and personal care industries.
How big is the global cocoa market
The global cocoa market is significant, with demand driven by the popularity of chocolate and other cocoa-based products. According to a report by Mordor Intelligence, the global cocoa market was valued at approximately USD 22.5 billion in 2020 and is expected to reach USD 32.3 billion by 2025, at a compound annual growth rate of 7.2%.
The Asia-Pacific region is the largest market for cocoa, followed by Europe and North America. The growth in the Asia-Pacific region is driven by the increasing demand for chocolate and other cocoa-based products, while the demand in Europe and North America is driven by the growing popularity of specialty and premium chocolates.
Overall, the demand for cocoa is likely to remain strong in the coming years due to the widespread popularity of chocolate and other cocoa-based products. However, the cocoa market is subject to fluctuations in price and supply due to factors such as weather conditions, disease outbreaks, and economic conditions in cocoa-producing countries.
Further information
Data source: IMF
This data has been partly provided by the IMF and the World Bank. The only change is that it has been indexed for Jan 2019 (so Jan 2019 is set as the index 1.00). The data is provided subject to the terms and conditions as defined by the IMF
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Notes on the price-data
- We aim to update the data series on the 9th and 24th of each month (but we do not always make it for each chart)
- The data for the current month and recent history are fine-tuned over time.
- We are continually improving our data collection and processing methods
- Pricing data will be updated from time to time as we improve the accuracy
- We will improve our price trend algorithm before December 31, 2023.
- There will be continuous fine-tuning of the trend and forecast algorithm until end of December 2023.
- As part of that process, we will add many additional indexes in the final quarter of 2023
- This the index trend of the price of the product group in general and not a single specification in particular
- The source of the data are exclusively public non-confidential sources
- We combine public publications, import/export records, company announcements, and sources of ad-hoc public information.
- The chart shows the price trend, nearly always taken from many statistically-correlated sources
- The data is presented in US$. The UOM of measure is shown in the Index list table
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