Home Food & Beverages Cocoa Butter Equivalent (CBE) Market Share & Analysis Report [2031]

Cocoa Butter Equivalent (CBE) Market

Cocoa Butter Equivalent (CBE) Market Size, Share & Trends Analysis Report By Type (Palm Oil, Shea Butter, Sal Fat, Others), By Applications (Food and Beverages, Pharmaceuticals , Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRFB422DR
Study Period 2020-2032 CAGR 6.12%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 1,189.43 million
Forecast Year 2032 Forecast Year Market Size USD 2,030.04 million
Largest Market Europe Fastest Growing Market -
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Market Overview

The global cocoa butter equivalent (CBE) market size was valued at USD 1,189.43 million in 2023. It is estimated to reach USD 2,030.04 million by 2032, growing at a CAGR of 6.12% during the forecast period (2024–2032). The global cocoa butter equivalent (CBE) market is driven by the surging demand for chocolate and confectionary products, which increases the demand for cocoa butter. Nonetheless, the cocoa industry is facing several challenges, which are, in turn, estimated to boost the demand for cocoa butter equivalent (CBE). Moreover, there has been a rise in the innovation and launch of novel cocoa butter equivalent (CBE), which is expected to provide opportunities for market expansion.

Cocoa Butter Equivalent (CBE) is a fat or oil substance used in the food industry as a substitute for cocoa butter, primarily in chocolate production. CBEs are typically derived from vegetable oils such as palm oil, shea butter, or coconut oil. They mimic the properties of cocoa butter, providing similar texture, mouthfeel, and melting characteristics to chocolate products.

While cocoa butter is prized for its unique flavor and smooth texture, its high cost and limited availability sometimes necessitate using CBEs as economical alternatives. However, using CBEs can impact the flavor and quality of the final product, leading to debates over authenticity and consumer preferences. Regulations often require clear labeling when CBEs are used in chocolate products to inform consumers accurately.


  • Palm oil dominates the type segment
  • Food and beverages dominate the application segment
  • Europe is estimated to hold the largest market share

Market Dynamics

Cocoa Butter Equivalent (CBE) Market Drivers

Growing Demand for Chocolate and Confectionery Products 

The global demand for chocolate and confectionery products drives the Cocoa Butter Equivalent (CBE) market significantly. As consumer preferences for indulgent treats continue to rise, so does the need for ingredients like cocoa butter and its equivalents. For instance, the chocolate and confectionery market is experiencing significant growth. The global market has experienced value growth, rising from USD 105 billion in 2017 to USD 113 billion in 2022. Moreover, there are indications that this positive trend will persist, as experts predict an average annual growth rate of +3.9% until 2027.

However, the cocoa industry faces challenges such as fluctuating cocoa prices and supply chain issues, leading manufacturers to explore alternatives like CBEs to maintain product quality while managing costs. CBEs also offer flexibility and usefulness in formulations, enabling producers to create a wide range of chocolate and confectionery items to satisfy different market demands as they develop and diversify their product offerings to satisfy expanding customer tastes. Hence, the expanding global appetite for chocolate and confectionery goods continues to fuel the growth of the CBE market.

Shifts in Consumer Preferences 

Shifts in consumer preferences play a significant role in shaping the Cocoa Butter Equivalent (CBE) market. Consumers demand products that align with their needs, including ethical sourcing, sustainability, and health consciousness. This has led to a growing preference for CBEs derived from sustainable and responsibly sourced ingredients. Consumers are seeking healthier alternatives to traditional cocoa butter, driving the development of CBEs with improved nutritional profiles, such as reduced saturated fats or allergen-free options.

Furthermore, there is a rising interest in premium quality products among consumers, prompting manufacturers to focus on enhancing the quality and functionality of CBEs to meet these expectations. As consumer awareness grows regarding the environmental and social impacts of their purchasing decisions, manufacturers are under pressure to ensure transparency and traceability in their supply chains, further influencing the adoption of CBEs in the market.

Cocoa Butter Equivalent (CBE) Market Restraint

Price Volatility 

Price volatility in the Cocoa Butter Equivalent (CBE) market is a significant restraint due to the fluctuating costs of raw materials like palm oil or shea butter. Factors such as weather conditions, geopolitical tensions, and supply-demand imbalances can lead to unpredictable fluctuations in input costs. These fluctuations affect the profitability of CBE production, making it difficult for manufacturers to support stable pricing and margins.

Moreover, price volatility can disrupt supply chains, hinder long-term planning, and create uncertainty for producers and consumers. Investments in research and development for alternative raw materials or production methods may offer more stability in the face of price volatility, fostering resilience and competitiveness in the CBE market.

Cocoa Butter Equivalent (CBE) Market Opportunities

Launch of Innovative Product

Key players' innovation and launch of new cocoa butter equivalents (CBE) stimulate market growth by enhancing product diversity and catering to varying consumer preferences and dietary needs. This expansion in product offerings attracts new consumer segments and strengthens brand loyalty among existing customers. Similarly, innovation in CBE formulations often leads to improved functionality, such as better texture, taste, and stability in various applications like confectionery, bakery, and cosmetics. These advancements broaden the potential usage of CBEs in different industries, increasing their market penetration.

In December 2020, Bunge Loders Croklaan introduced a new product called a 100% shea-based cocoa butter equivalent (CBE). According to the firm, Karibon can assist food makers in satisfying the desires of consumers for health-conscious and sustainable choices that maintain taste and quality. Bunge Loders Croklaan states that the shea-based product has a higher concentration of stearic acid and lower levels of saturated fats when compared to cocoa butter and other cocoa butter equivalents (CBEs). The invention, which is now awaiting patent approval, is said to enhance the nutritional content of chocolate products. This is projected to generate opportunities for market expansion.

Regional Analysis

Based on region, the global cocoa butter equivalent (CBE) market is bifurcated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. 

Europe Dominates the Global Market

Europe is the most significant global cocoa butter equivalent (CBE) market shareholder and is expected to expand substantially during the forecast period. Europe is the primary user of CBE because it has the highest number of chocolate consumers and allows the use of CBE in chocolate formulation up to 5% of the total weight. The food sector in most European countries is well developed and can readily incorporate newly launched goods like CBE. Switzerland, Germany, Russia, and the U.K. are the primary importers of cocoa butter and CBE. These countries also have the largest per capita chocolate consumption in the region. This high consumption contributes to the growing demand for CBE. For instance, an astonishing 95% of British consumers consume chocolate. Approximately 80% of the British consume chocolate at least once a week, indicating that it is a common and frequent component of British dietary habits.

Moreover, according to Mintel, a research firm, in 2023, a significant majority of German consumers, namely three-quarters, consume chocolate at least once per week. Over 10% of these customers also indulge in chocolate daily or even more frequently. A majority of German consumers believe that consuming chocolate is a cost-effective method to enhance their mood, and the majority of them prefer purchasing chocolate bars that can be consumed on various occasions. According to the market research agency, this indicates that German consumers incorporate eating chocolate into their daily routine rather than consider it an occasional and unpredictable indulgence. Similarly, the shifting prices of essential raw materials like cocoa butter are increasing the demand for CBE to manage the escalating costs of chocolate manufacturing. CBE is preferred due to its affordability and widespread availability.

In North America, the consumption of cocoa butter equivalent (CBE) is relatively low because of the stringent government rules and the existence of regulatory agencies such as the Food and Drug Administration (FDA). The FDA has banned using inter-esterified vegetable oils and fats in all products. Despite having significant demand for chocolate, the United States has the smallest market share in the CBE market. However, certain regional manufacturers employ CBE to produce chocolate bars by applying a coating and filling process. The region has approximately 400 chocolate makers, accounting for over 90% of chocolate production in the U.S.

Likewise, a poll by Cargill's North America Cocoa & Chocolate team in February 2021 found that almost one-third of Americans in the country escalated their chocolate consumption during the epidemic. In addition to the causes described above, North America has a large population that is health-conscious. Many of them choose cocoa butter over cocoa butter equivalents because of the high nutritional content of cocoa butter. These factors are anticipated to have a significant influence on future market growth.

Report Scope

Report Metric Details
By Type
  1. Palm Oil
  2. Shea Butter
  3. Sal Fat
  4. Others
By Applications
  1. Food and Beverages
  2. Pharmaceuticals 
  3. Others
Company Profiles AAK AB Fuji Oil Holdings Inc. Wilmar International Ltd 3F Industries Limited Felda Iffco LLC Manorama Industries Limited Bunge Limited ADM (Archer Daniels Midland) Makendi Worldwide
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global cocoa butter equivalent (CBE) market is bifurcated into type and application.

Based on type, the global cocoa butter equivalent (CBE) market is segmented into palm oil, shea butter, sal fat, and others. 

The palm oil segment dominates the global market. Palm oil is a versatile vegetable derived from oil palm trees' fruit, primarily cultivated in tropical regions such as Indonesia and Malaysia. It is widely used in various industries, including food production, cosmetics, and biofuels. Due to its high yield per unit of land and relatively low production costs, palm oil has become one of the most commonly used vegetable oils globally. However, its production has raised significant environmental and social concerns. Large-scale palm oil cultivation often leads to deforestation, habitat destruction for wildlife, and displacement of indigenous communities.

Additionally, clearing land for palm oil plantations contributes to greenhouse gas emissions and biodiversity loss. Promoting sustainable palm oil production aims to mitigate these negative impacts by advocating for practices that minimize environmental harm and respect human rights. The Roundtable on Sustainable Palm Oil (RSPO) and other certification programs work to guarantee ethical palm oil production and procurement methods.

Based on the application, the global cocoa butter equivalent (CBE) market is bifurcated into food and beverages, pharmaceuticals, and others. 

The food and beverages segment owns the highest market share. Cocoa Butter Equivalent (CBE) 's main application in food and beverages is as a substitute for cocoa butter, providing similar texture and melting properties at a lower cost. CBE is commonly used in chocolate confectionery, bakery products, and spreads to improve mouthfeel, stability, and shelf life. It enhances the sensory experience by imparting smoothness and creaminess to products.

Additionally, CBE enables manufacturers to produce chocolates with consistent quality in various climatic conditions since they have a higher melting point than cocoa butter. Its versatility extends to applications in ice cream, margarine, and dairy alternatives, contributing to the desired texture and structure. Moreover, the growing consumer preference for sustainable and ethically sourced ingredients also influences the adoption of CBE, as it can be derived from renewable sources like palm oil. These aspects collectively contribute to expanding the CBE market in the food and beverage sector.

Market Size By Type

Recent Developments

  • February 2024- SheaMoisture launched its first deodorant collection, consisting of six antiperspirants and two full-body deodorants specifically designed for those with high melanin levels in their skin. These products are created in collaboration with Black dermatologists and specifically target concerns such as improving skin tone, moisturizing the skin, and promoting smoothness. Additionally, they offer protection against body odor and sweat.
  • October 2023- KTC Edibles, the leading provider of edible oils in the UK, introduced Planet Palm, a fresh line of palm oil products that are certified sustainable, traceable, and sustainably produced. These products are specifically designed for food producers in the UK.

Top Key Players

AAK AB Fuji Oil Holdings Inc. Wilmar International Ltd 3F Industries Limited Felda Iffco LLC Manorama Industries Limited Bunge Limited ADM (Archer Daniels Midland) Makendi Worldwide Others

Frequently Asked Questions (FAQs)

What is the growth rate for the Cocoa Butter Equivalent (CBE) Market?
Cocoa Butter Equivalent (CBE) Market size will grow at approx. CAGR of 3.31% during the forecast period.
Some of the top industry players in Cocoa Butter Equivalent (CBE) Market are, AAK AB, Fuji Oil Holdings Inc., Wilmar International Ltd, 3F Industries Limited, Felda Iffco LLC, Manorama Industries Limited, Bunge Limited, ADM (Archer Daniels Midland), Makendi Worldwide, etc.
In the Cocoa Butter Equivalent (CBE) Market, Europe has established itself as the market leader with a significant market share.
The North America region has experienced the highest growth rate in the Cocoa Butter Equivalent (CBE) Market.
The global Cocoa Butter Equivalent (CBE) Market report is segmented as follows: By Type, By Application

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