Cocoa butter equivalent (CBE) is one of the major substitutes to cocoa butter for manufacturing chocolate and confectionary products. Additionally, CBE offers temperature stability and texture to the chocolate. Chocolate and confectionery industry is one of the leading consumers of CBE. According to cocoa organization, approximately, over 4,100 chocolate manufacturers are present across the globe. Cocoa butter equivalent is majorly used in dark and white chocolate manufacturing and their increased sale is boosting the demand for CBE further. For instance, the sale of dark chocolate and milk chocolate increased by 9% and 6% respectively in 2018. Moreover, rising global population is driving the growth of the food industry. For instance, according to the USA facts, in 2017 U.S. population accounts at approximately 325.7 million. Similarly, according to Office for National Statistics, approximately 66 million was the population count of U.K in 2017.
Global Cocoa Butter Equivalent (CBE) Market was valued at USD 605 million in 2018, growing at a significant CAGR during the forecast period of 2019–2026.
By application, the market is segmented into food & beverages, pharmaceutical & others. Food and beverages segment is accounting for the major share of 94.1% of the market. Chocolate and confectionery industry is one of the leading consumers of CBE. According to cocoa organization, approximately, over 4,100 chocolate manufacturers are present across the globe. Based on type the market is segmented into palm oil, shea butter, sal fat, and others. Palm oil is the largest revenue generator in the forecast period. It is majorly used in food and cosmetic applications and 90% of which is used in cooking, also used in manufacturing cocoa butter equivalent.
North America consumes relatively low volume of the cocoa butter equivalent (CBE) due to stringent government regulations and presence of strict regulatory bodies such as Food and Drug Administration (FDA). FDA has prohibited the use of inter-esterified vegetable oils and fats in any product. Thus, the U.S. holds the least share of the CBE market even though it has huge demand for chocolate. However, some manufacturers in the region are using CBE for manufacturing coating and filling of chocolate bars. For instance, over 400 chocolate manufacturers are present in the region, which produce more than 90% of chocolate in the U.S. Apart from the above-mentioned factors, North America has huge health conscious population and most of them prefer cocoa butter instead cocoa butter equivalent due to high nutritional value of cocoa butter. In addition, increasing use of shea butter in the pharmaceutical industry due to its medicinal properties such as emollient, anti-inflammatory, emollient is contributing to the CBE market growth.
Europe is dominating the cocoa butter equivalent (CBE) market. Europe is the largest consumer of CBE due to presence of the largest chocolate consumer base and allowed use of CBE in chocolate formulation up to 5% by weight. In most of the European countries, food industry is considerably developed, which can easily adopt newly introduced products such as CBE. Countries such as Switzerland, Germany, Russia, and the U.K are the major importers of cocoa butter as well as CBE and have the highest per capita chocolate consumption in the region, which contributes to the increasing demand for CBE further. Moreover, fluctuating prices of key raw materials such as cocoa butter is driving the demand for CBE to control the rising cost of chocolate production as CBE is cheap and easily available.
Some of the prominent players in the 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) and Makendi Worldwide.