Cocoa beans market in Malaysia

Earlier Report Observations

The cocoa bean market in Malaysia expanded significantly from 191 thousand tons in 2018 to 429 thousand tons in 2023, driven by rising imports which reached 533 thousand tons in 2023. This growth occurred despite a decline in domestic production, as local grinding capacity increased to meet strong export demand for processed cocoa products. Government initiatives under the National Commodity Policy, aiming to develop Malaysia as a regional processing and trading hub, supported this trend.

Key factors included the COVID-19 pandemic in 2020, which reduced grinding activity and export revenue but did not curb import volumes, and a sustained rise in export value from RM6.8 billion in 2021. By 2023, soaring global cocoa prices reaching RM20,000 per ton, combined with insufficient local bean production due to extreme weather and pest attacks, forced greater reliance on imported beans. The market experienced a temporary dip in 2022 to 351 thousand tons, coinciding with high export demand for cocoa-based products in regions like the Middle East.

In 2024, a severe global supply shortage from West Africa caused cocoa bean prices in Malaysia to surge to RM17 per kilogram, leading some processing plants to suspend operations. This underscored the market's exposure to worldwide supply shocks, even as domestic programs like the RM4.6 million Sarawak Cocoa Cluster Complex sought to bolster local value chains.

Production cocoa beans in Malaysia

In kind, 2018-2021, t

Top producers of cocoa beans, 2018-2021

World map of production of cocoa beans, 2018-2021

Malaysia's cocoa bean production declined for the second consecutive year. In 2021, the country produced 537 tonnes of cocoa beans, marking a significant contraction of 23.9% compared to 2020. Over the period from 2018 to 2021, production decreased by 35%, with a compound annual growth rate of -13.4%. The highest production level was recorded in 2019 at 1 017 tonnes, which saw the largest increase of 23.1% that year. However, the most substantial decline occurred in 2020, with a drop of 30.6%.

Annual dynamics of production in Malaysia in kind, 2018-2021, t

In value, 2018-2021, K $ US

Malaysia's cocoa bean production value also declined for the second consecutive year. In 2021, the output was valued at 1 439 thousand US dollars, representing a robust decrease of 19.6% compared to 2020. From 2018 to 2021, production value fell by 23.3%, with a compound annual growth rate of -8.5%. The peak value was recorded in 2019 at 2 381 thousand US dollars, which experienced the largest increase of 26.8% that year. The most significant decline was in 2020, with a drop of 24.8%.

Annual dynamics of production in Malaysia in value, 2018-2021, K $ US

Exports cocoa beans from Malaysia

Exports in kind, K t

After a two-year decline, Malaysia's cocoa bean exports increased in 2021. The country exported 104.5 thousand tonnes of cocoa beans, showing a rise of 9.3% year-over-year. However, between 2018 and 2021, exports decreased by 32.9%, equating to an annualized rate of -12.4%. The lowest export volume was recorded in 2020 at 95.6 thousand tonnes, following the largest decline of 28.7% in 2019.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, K t

From 2018 to 2021, Singapore and Indonesia formed the core of Malaysia's cocoa bean exports in kind, together accounting for 98.5% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, M $ US

Following a two-year decrease, Malaysia's cocoa bean export value increased in 2021. The export volume amounted to 280 million US dollars, reflecting a gain of 15.5% compared to the previous year. Over the period from 2018 to 2021, exports decreased by 20.8%, with an annualized rate of -7.5%. The minimum value was recorded in 2020 at 242 million US dollars, after the largest decline of 26.6% in 2019.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, M $ US

Between 2018 and 2021, Malaysia's cocoa bean exports in value terms were largely concentrated on Singapore, which accounted for 78.9% of total flows; other countries together formed the residual share.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports cocoa beans to Malaysia

Imports in kind, K t

Malaysia's cocoa bean imports increased for the third consecutive year. In 2021, the country imported 478.8 thousand tonnes of cocoa beans, representing a solid advance of 24.5% year-over-year. From 2018 to 2021, imports grew by 38.6%, with a compound annual growth rate of 11.5%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, K t

Over the period 2018–2021, Côte d'Ivoire (34.6% of imports in kind), Ghana (17.0% of imports in kind), and Ecuador (9.9% of imports in kind) were the primary suppliers of cocoa beans to Malaysia, jointly accounting for 61.5% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, M $ US

Malaysia's cocoa bean import value increased for the third consecutive year. In 2021, imports totalled 1 209 million US dollars, reflecting a gain of 24.3% over the past year. Between 2018 and 2021, imports increased by 53.4%, with a compound annual growth rate of 15.3%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, M $ US

From 2018 to 2021, Côte d'Ivoire (34.3% of imports in value terms), Ghana (18.1% of imports in value terms), and Ecuador (10.0% of imports in value terms) formed the main group of sources for Malaysia's cocoa bean imports in value terms, with a combined share of 62.4% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021