The cocoa market - Italy (2024)

1.2 The global market

The size of the global cocoa market was about $**.*** billion in ****. The market is expected to grow further at a compound annual growth rate (***) of *.** percent between **** and ****, reaching a value of $**.** billion by ****. This represents an increase of **.**% over the period.

Global Cocoa Market Value World, ****-****, in US$ billion ExpertMarketResearch

The production of cocoa beans is very challenging, as it requires year-round warm weather, as well as high humidity and heavy rainfall (***). These conditions are mostly met by tropical forests. This explains why cocoa production is carried out in only a few countries. Ivory Coast and Ghana alone account for ** percent of world cocoa production.

World cocoa producers World, ****, in % VisualCapitalist

World cocoa production was dominated by Côte d'Ivoire, which contributed **.* percent of global production, or *.* million tons. It was followed by Ghana with **.* percent (***).

World cocoa producers World, ****, in million tons VisualCapitalist

Cocoa beans are generally exported to industrialized countries that are the main consumers (***). However, cocoa processing is increasingly taking place in producing countries [***].

1.3 The European market

The size of the cocoa and chocolate market in Europe is projected to reach a value of $**.** billion in **** and grow at a compound annual growth rate (***) of *.**% from **** to ****, reaching $**.** billion by ****. This represents an increase of **.**% in six years.

European Cocoa Market Value Europe, ****-****, in US$ billion MarketDataForecast

Dutch dominance in European cocoa bean exports:

Major exporters of cocoa beans Europe, ****, in thousand tons UNComtrade In ****, the Netherlands clearly stands out as Europe's largest exporter of cocoa beans with ***.* thousand tons, far outpacing other countries. Belgium follows with **.* thousand tons, while Estonia and Germany export **.* and *.** thousand tons, respectively. Italy, with *.** thousand tons, and Turkey, with *.** thousand tons, show similar export volumes. France closes the list with *.** thousand tons. The dominance of the Netherlands is evident, with exports exceeding the sum of all other countries listed.

Major European Importers: Major importers of persimmon seed Europe, ****, in thousand tons UNComtrade The Netherlands emerges as the leading European importer of cocoa beans with ***.* thousand tons, an amount that far exceeds that of the other countries. Germany follows with ***.* thousand tons, while Turkey and Belgium import ***.* and ***.* thousand tons, respectively. Italy, with ***.* thousand tons, and Spain, with **.* thousand tons, show similar ...

1.4 The Italian market

In ****, the turnover of Italian cocoa, chocolate, candy and confectionery companies was *.** billion euros, rising to *.** billion euros in **** and peaking at *.** billion euros in ****. In ****, turnover dropped to *.** billion euros, with a slight recovery in ****, with turnover reaching *.** billion euros; **** saw a significant decrease to *.** billion euros, marking an overall decrease of **.* percent compared to ****.

Turnover of cocoa, chocolate, candy and confectionery manufacturing companies [***] Italy, ****-****, in billion € Istat, RegistroAziende

Between **** and ****, the value production of products containing cocoa, excluding chocolate, in Italy experienced an initial decline followed by a partial recovery. From **** to ****, the value decreased by **.* percent, from ***.** to ***.** million euros. The decline continued until it reached its lowest point in ****, at ***.** million euros. However, a recovery was observed from **** onward, culminating in a value of ***.** million euros in ****. Overall, the decline from **** to **** was **.* percent, but the last two years indicate a positive trend toward recovery. Production in value sold of each product containing cocoa excluding chocolate Italy, ****-****, in millions of € Istat, Businesscoot elaboration

The categories are as follows, and they have these percentages within the market:

[***] Cocoa paste [***] Cocoa butter, fat and oil [***] Cocoa powder without added sugar or other sweeteners, including in capsules [***] ...

1.5 Imports and Exports

Between **** and ****, Italian cocoa bean exports increased from $*.* million to $*.** million, marking an increase of **.** percent. Imports, on the other hand, rose from $*** million to $***.* million, an increase of **.** percent. Despite the growth in exports, the coverage rate remains low, although it improved from *.*** in **** to *.*** in ****. This indicates that Italy continues to import much more cocoa than it exports, but the proportion of exports to imports is slowly increasing.

Exports, Imports and Coverage Rate of Cocoa beans Italy, ****-****, in million US$ UNComtrade

In ****, Italy imported most cocoa beans from Côte d'Ivoire, accounting for **.** percent of the total. This was followed by Ecuador (***). Imports from the Netherlands, Nigeria, Peru and Belgium are more modest, ranging from *.** percent to *.** percent. Other countries contribute *.** percent of imports. The predominance of Côte d'Ivoire is significant, while the rest of the imports are more evenly distributed among the other countries. Main countries of origin of cocoa beans imports Italy, ****, in % UNComtrade

france was by far the largest recipient of cocoa bean exports from Italy, accounting for **.**% of the total. Germany and Belgium received **.** percent and **.** percent, respectively. Exports to the Netherlands (***) were more limited, while other countries accounted for *.** percent. Main destination ...

1.6 Inflation suffered by the sector

In Italy, the cocoa market has dealt with inflation through various strategies. Rising raw material, energy and transportation costs have pushed confectionery companies to increase product prices, reducing consumer demand. To mitigate the impact, companies have improved production efficiency, adopted advanced technologies and diversified cocoa supply sources. In addition, the government and trade associations have provided support through incentives and sustainability programs. Despite these measures, challenges remain significant and the industry continues to seek solutions to maintain competitiveness and product quality.

Industry producer price index - monthly data - base ****=*** of cocoa, chocolate, candy and confectionery production [***] Italy, ****-****, index Istat

during ****-****, the industry producer price index for cocoa, chocolate, candy and confectionery production in Italy showed a steady increase. In January ****, the index was ***.* and reached ***.* in November ****, indicating a *.* percent increase in nearly two years. In ****, the index saw gradual growth, with a significant peak in October (***), maintaining high levels until the end of the year. During ****, the index continued to rise, touching ***.* in October and peaking at ***.* in November, suggesting an upward trend in producer prices for this sector.

2.1 Overview of demand

from **** to ****, the average monthly household expenditure on cocoa and chocolate powder in Italy showed a slight fluctuation. In **** it was €*.**, growing slightly to €*.** in ****. However, in **** it dropped to *.** €, continuing to decline to *.** € in ****. In ****, spending rose again to *.** €. Overall, there is a * percent reduction from the initial expenditure in **** to the final expenditure in ****.

Average monthly household expenditure on cocoa and chocolate powder Italy, ****-****, in current &euro Istat

In **** in Italy, the production of products containing cocoa, excluding chocolate, crossed several categories. Cocoa-containing spreads dominated with ***.* thousand tons. Beverage preparations containing cocoa totaled **.* thousand tons, followed by cocoa-based food products with **.* thousand. Cocoa powder without added sugar recorded *.** thousand tons, while cocoa paste reached *.** thousand. Sugar products containing cocoa were *.** thousand tons, with cocoa butter, fat and oil at *.** thousand tons. Finally, cocoa powder with added sugars had an output of *.** thousand. Productions containing cocoa sold in quantity excluding chocolate Italy, ****, in thousand tons Istat [***] Cocoa paste [***] Cocoa butter, fat and oil [***] Cocoa powder without added sugar or other sweeteners, including in capsules [***] Cocoa powder, with added sugar or other sweeteners, including in capsules [***] Sugar products and their substitutes, containing cocoa [***] Spreads containing cocoa [***] Beverage preparations containing cocoa [***] ...

2.2 Distribution of demand

The average household expenditure on cocoa and chocolate powder in Italy varies significantly across geographic areas. In the South and Islands, spending is the highest at €*.**. In the Center it drops to €*.**, while in the Northeast and Northwest it stands at €*.**. These data indicate a greater propensity to spend on these products in the southern and island regions than in the central and northern regions of the country.

In ****, Lombardy leads the consumption of sweets at least a few times a week with *.** million, followed by Lazio (***).

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Among children aged *-* years, the number of consumers is *** thousand, representing **.*% of that age group. This percentage increases slightly among *-** year olds, reaching **.*%, the highest value among all age groups. As age increases, the percentage of people who consume sweets regularly tends to decrease. Adolescents aged **-** have a percentage of **.* percent, falling further to **.* percent among **-** year olds and **.* percent among **-** year olds. Among adults, the percentage continues to decline: **.* percent for **-** year olds, **.* percent for **-** year olds, and **.* percent for **-** year olds.The consumption of sweets becomes even less frequent among older people. Only **.* percent of people aged **-**, **.* percent aged **-**, and **.* percent ...

2.3 Trends in cocoa demand

The trend of online cocoa searches in Italy between **** and **** shows considerable variability. In June ****, the index was ** and peaked in March **** with **, representing an increase of ***.* percent. Between June and December ****, searches showed an increasing trend, culminating in a high of **.** in November. After a decline in early ****, interest rose again, with another peak in December ****. In the first six months of ****, interest remained high, albeit with some fluctuations, with a value of ** in June ****. These figures indicate an increasing focus on cocoa, with seasonal peaks likely related to holidays and specific periods.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term, ** indicates half of the searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Trend of online searches for cocoa Italy, ****-****, index Google Trends, Businesscoot elaboration

Online searches for cocoa in Italy show a varied geographic distribution. Basilicata records the highest index with ***, followed by Puglia (***) and Trentino-Alto Adige and Sardinia, both with **. This indicates a greater interest in cocoa in southern Italy than in ...

2.4 New Demand Trends

New trends in the cocoa and chocolate market are influenced by various factors that reflect changes in consumer preferences and global market dynamics. Here are some of the key emerging trends:

Sustainability and Transparency: Consumers are increasingly concerned about the origin of cocoa and the environmental impact of chocolate production. There is a growing demand for Fair Trade, Rainforest Alliance certified products and other sustainability labels. Companies are investing in sustainable farming practices and supply chain traceability to ensure that cocoa is grown without labor exploitation and with reduced environmental impact(***). Premiumand high-quality chocolate: Consumers are showing a growing interest in high-quality chocolate, often referred to as bean-to-bar. These products emphasize the origin of the cocoa and the artisanal techniques used in production. Single-origin and artisanal chocolates are gaining in popularity, often accompanied by stories about the origin and cultivation of cocoa(***). Product innovation: Innovation is a key trend, with companies introducing new flavors, textures and shapes of chocolate. This includes chocolates fortified with superfoods, chocolates infused with exotic flavors, and products that combine chocolate with healthy ingredients such as nuts and dried fruits. Sugar-free or low-sugar variants are also increasing in response to demand for healthier options(***). Vegan and allergen-free ...

3.1 Italian market structure

The number of enterprises active in cocoa and chocolate production in Italy decreased from *** in **** to *** in ****. This represents an overall decrease of *.* percent over the period. After a significant decline between **** and ****, the number of companies remained relatively stable with slight fluctuations in subsequent years, showing a slight recovery in **** followed by a new decline in **** and modest growth in ****.

There are *** companies active in the production of cocoa, chocolate, candies and sugared almonds with ateco code **.** of which *** are corporations, the total turnover of these enterprises is €*,***,***,***.

Number of enterprises active in cocoa and chocolate production [***] Italy, ****-****, in number Istat

The distribution of legal forms shows a predominance of limited liability companies, accounting for **.** percent of the total. Sole proprietors, freelancers, and the self-employed make up **.** percent, while general partnerships and limited partnerships account for **.** percent and *.** percent, respectively. Joint stock companies, including limited partnerships, make up *.** percent. Social cooperatives and other forms of enterprises account for only a small part of the total, accounting for *.**%, *.**% and *.**% respectively. Legal form of enterprises active in the production of cocoa, chocolate, candies and sugared almonds Italy, ****, in % Istat

In ****, there were **,*** employees, a figure that remained almost unchanged in **** with ...

3.2 Value Chain

From farmer to end consumer

Between the cocoa bean farmers, mainly in Ghana and Côte d'Ivoire (***), and the end customers, the consumers of chocolate and chocolate products, there are different types of actors along the global value chain.

Source: ****

In fact, once harvested, the beans must undergo sorting and cleaning before being taken from the trading companies to processing plants. There, the beans are roasted, ground and processed into cocoa powder, butter or paste (***).

"Bottleneck" in the cocoa sector, world

The world cocoa supply chain has a characteristic "bottleneck" shape, with more than * million producers on one side, most of whom operate a few hectares of cocoa plantations, millions of potential consumers downstream, and four companies in the middle of the chain with two-thirds of the milling capacity and ten companies with ** percent of the retail confectionery business.

These elements constitute a chain in which the priority of the entire middle segment, which concentrates the raw material and redistributes the processed products, is the quantity and uniformity of the product, at the expense of its taste variety, and effective segregation according to the environmental and social conditions of production.[***]

3.3 Leading international manufacturers and distributors

The main ones are as follows:

Cargill: It is an agribusiness giant with more than *** years of history, operating in more than ** countries with a deep commitment to innovation and sustainability. Founded in ****, the company has grown tremendously, now employing about ***,*** people worldwide. One of the key aspects of operations is its commitment to the cocoa industry. It is deeply involved in the cocoa supply chain, with processing operations in producing countries such as Côte d'Ivoire, Ghana, Brazil, Cameroon, and Indonesia. A concrete example of the commitment is the expansion of its cocoa processing facilities in Ghana and Côte d'Ivoire(***).

Olam Group: It is a leading global agribusiness company, founded in **** and headquartered in Singapore. The company supplies food ingredients, feed and fiber to more than **,*** customers worldwide, ranging from large multinational brands to small family businesses. In ****, it announced a reorganization to create three separate operating groups-Olam Food Ingredients (***), Olam Agri, and the Olam Group Remaining Businesses. This strategy aims to maximize long-term value and optimize resources to take advantage of market opportunities. In the cocoa sector, it is a global leader, managing the entire value chain from cultivation to distribution. With a presence in more than ** countries, ...

3.4 The main players in the Italian market

In Italy, with ateco code **.**, production of cocoa, chocolate, candy and confectionery, there are *** companies including *** corporations, the total turnover of these enterprises is €*,***,***,***.

These are the main ones:

Ferrero Industriale Italia Srl: part of the Ferrero Group, is a company based in Alba, Cuneo, founded in ****. Specializing in the production of chocolate and confectionery products, the company employs about **** people. It is involved in the production of cocoa, chocolate, pralines, sweet spreads and desserts, managing the transformation of raw materials into finished products. Ferrero Industriale Italia is known for the high quality of its products and its commitment to sustainability. The company has implemented initiatives such as "Forever Chocolate," aimed at improving cocoa farming and promoting sustainable practices throughout the production chain. Ferrero, with its iconic products such as Nutella, Kinder, Tic Tac and Ferrero Rocher, is present in more than *** countries worldwide, reflecting an effective integration of tradition and innovation.

Lindt & Sprungli Spa: It is an important part of the Swiss Lindt & Sprüngli Group, known for the production and distribution of premium chocolate. The company is based in Induno Olona, Varese, Italy. Founded in ****, it produces a wide range of chocolates, including milk chocolate, dark chocolate, pralines, truffles ...

4.1 The cultivation of cocoa

Cocoa is traditionally grown by smallholders, who account for ** to ** percent of world production. They usually cultivate small plots of land, usually between * and * hectares in Africa and parts of Asia. The trees grow exclusively in tropical areas, where they can benefit from the shade of plants such as banana, plantain or oil palm.

Varieties of cocoa:

There are generally three varieties of cocoa:

Forastero. It accounts for about ** percent of total cocoa production. Trinitario, considered "the prince of cocoa," produces beans with a sweet aroma and balanced flavor Criollo, is a cross between the first two varieties, and its seeds generally have a fruity and slightly sour aroma, with a spicy and spicy flavor.

The last two varieties generally have a finer flavor.

Harvesting and cocoa production:

Once ripe, the pods-the fruit of the cacao tree-are harvested by hand and then husked to obtain the seeds. This harvesting period varies from region to region, from September to March. There is also a second "mid-season" harvest, mainly between May and August.

The grains are then fermented and dried at the producer's plantation or village. This stage usually lasts between five and ten days.

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4.2 Processing of cocoa beans

The supply of cocoa in the global market is a fascinating and complex issue, influenced by a number of interconnected factors.

Geographic Production: Cocoa grows best in tropical regions near the equator, where the warm, humid climate is ideal. The world's leading producers are Côte d'Ivoire and Ghana, which together account for a large share of global production. Indonesia, Nigeria and Brazil are also important producers. Cultivation: Most cocoa is grown by small farmers who own less than five hectares of land. Large plantations also exist, but they are less common.

Many factors influence cocoa supply:

Climatic Conditions: Droughts, floods, and other extreme weather events can damage crops. Plant Diseases: Cocoa is vulnerable to various diseases, such as moniliasis and black berry, which can decimate production. Economic and Political Factors: Political instability, civil wars, and government policies in producing countries can adversely affect cocoa production and export.

The cocoa processing process is multifaceted:

Harvesting: The cabosse, the cocoa fruits, are harvested by hand. Fermentation: The beans are fermented for several days to develop their flavor. Drying: After fermentation, the beans are dried in the sun or in desiccators. Roasting and Grinding: Finally, the dried beans are roasted and ground to ...

4.3 Cocoa prices

The International Cocoa Organization(***) calculates the world cocoa price daily in different currencies, including the euro. Over the past * years, the monthly price changes have been as follows:

Average cocoa price World, ****-****, in current € per tonne ICCO

The average world cocoa price between **** and **** showed a significant upward trend. In June ****, the price was **** € per ton. In the following months, the price rose gradually, reaching **** € in May ****. From June ****, the increase was more pronounced, reaching **** € in October ****. In ****, prices soared significantly, rising from **** € in January to a peak of **** € in March, before falling to **** € in May. Overall, the price increased by *** percent from June **** to May ****, with particularly strong growth in the last six months.

Constant Growth of Cocoa and Chocolate Powder Prices in Italy:

Consumer price index for cocoa and chocolate powder for the whole community (***) - monthly data Italy, ****-****, index Istat

Between May **** and May ****, the price index for cocoa and chocolate powder in Italy rose from ***.* to ***.*, marking an increase of **.* percent. The increase has been steady, with some significant peaks such as between February and March ****, where the index rose from ***.* to ***.*, and from July to September ****, where it rose from ***.* to ***.*. However, there were ...

4.4 Supply trends

In recent years, cocoa supply has seen the emergence of new trends that are transforming the industry. Here are some of the major trends that are shaping the cocoa supply in the global market:

Sustainability and Ethical Certifications: Sustainability has become a growing priority for producers and consumers. Certifications such as Fair Trade, Rainforest Alliance and UTZ are becoming increasingly popular. These certifications ensure that cocoa is grown according to sustainable practices that respect the environment and promote ethical working conditions for farmers. Advanced Technologies in Agriculture: The adoption of advanced technologies is revolutionizing cocoa production. Techniques such as precision agriculture, the use of drones to monitor plantations, and the implementation of automated irrigation systems are improving crop efficiency and yields. Traceabilityand Transparency: Traceability has become a crucial issue for consumers who want to know where the cocoa they buy comes from. Companies are investing in advanced traceability systems that allow them to track cocoa from the field to the final product. This not only improves transparency but also helps ensure product quality. Innovations in Packaging: Concern for the environment has prompted companies to innovate in packaging as well. There is a growing demand for eco-friendly, biodegradable or recyclable packaging. This ...

5.1 General Regulations

On July **, ****, after years of troubled legislative processes that began in ****, the European Parliament finally approved Directive ****/**/EC*, which harmonizes chocolate legislation and extends it to all fifteen member countries (***). The goal of the Directive is to ensure a greater degree of protection for the consumer, who must be fully aware of what he or she is buying. Directive ****/**/EC was implemented in Italy by Legislative Decree ***/****. The new Directive brings many new features including:

The possibility in member states to add in chocolate products other vegetable fats than cocoa butter, within a maximum limit of * percent of the finished product. The minimum percentage of cocoa butter set in the regulations must still be respected. The vegetable fats must be equivalent to cocoa butter and are strictly those specified in the Directive Chocolate products that contain vegetable fats other than cocoa butter may be placed on the market in all member states, provided that their labeling bears the conspicuous and clearly legible statement, "contains other fats in addition to cocoa butter." The legislation recalls the application of the general labeling provisions contained in Directive **/***/EEC implemented in Italy by Legislative Decree ***/****, as amended. there is a requirement to include the minimum ...

6.1 Market segmentation

• Elah Dufour Novi
• Lindt & Sprungli
• Nestlè Italia (Perugina)
• Ferrero
• Irca
• Icam
• Nutkao Srl
• Dolfin Srl
• Cargill
• Olam Group
• The Hershey Company
• Ecom Agroindustrial Company
• Touton