Cocoa powder and cake market in South America

Earlier Report Observations

From 2018 to 2021, the cocoa powder and cake market in South America expanded significantly, with volume rising from 210.5 thousand tons to 261.2 thousand tons. This growth was propelled by substantial investments in expanding cultivation areas, including the establishment of the world's largest cocoa farm with advanced technologies. Cocoa and chocolate exports surged by 86% in 2021, driven by improved quality and high commodity prices, while the anticipated implementation of the Mercosur-European Union trade agreement created favorable expectations for market access.

The market volume contracted sharply to 214.3 thousand tons in 2022, primarily due to increased industry costs following changes in import regulations for cocoa beans. In 2023, the market stabilized at 214.2 thousand tons as record-high global cocoa prices, caused by worldwide supply shortages, encouraged domestic production and prompted investments in technology and sustainability to enhance productivity.

Production cocoa powder and cake in South America

In kind, 2017-2020, K t

Top producers of cocoa powder and cake, 2017-2020

World map of production of cocoa powder and cake, 2017-2020

South America's production of cocoa powder and cake declined after two years of growth. In 2020, the region produced 185.5 thousand tons, marking a moderate decrease of 5.5% compared to the previous year. Looking at the period from 2017 to 2020, production increased by 5.5%, which translates to an annualized growth rate of 1.8%. The peak was reached in 2019 with 196.3 thousand tons, when production saw its largest increase of 6.9%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of expansion, cocoa powder and cake production in South America experienced a downturn. In 2020, the output was valued at 558.9 million US dollars, reflecting a moderate decline of 7.2% from 2019. Over the 2017-2020 period, production decreased by 5.1%, with a compound annual growth rate of 1.7%. The highest value was recorded in 2019 at 602.1 million US dollars, which also saw the largest increase of 1.8%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports cocoa powder and cake from South America

Exports in kind, t

Cocoa powder and cake exports from South America rose for the second year in a row. In 2020, export volumes reached 34 125 tons, showing a slight uptick of 1.5% compared to the previous year. From 2017 to 2020, exports grew by 15.8%, equivalent to an annualized rate of 5.0%. The lowest volume was in 2018 at 28 333 tons, when exports saw their largest decline of 3.8%. The most significant increase occurred in 2019 with an 18.7% rise.

Annual dynamics of product's exports from South America in kind, 2017-2020, t

Between 2017 and 2020, South America exported cocoa powder and cake to a wide range of markets. The United States accounted for 9.2% of exports in kind, the Netherlands for 8.2%, and Mexico for 2.6%, together making up only 20.0% of total exports. The remaining 80.0% was distributed among numerous smaller destinations.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of cocoa powder and cake exports from South America was 102.8 million US dollars, holding steady compared to the previous year. Over the 2017-2020 period, exports increased by 4.2%, with an annualized growth rate of 1.4%. The lowest value was recorded in 2018 at 91.2 million US dollars, while the peak was in 2019 at 103.1 million US dollars. The largest decline occurred in 2018 with a 7.6% drop, and the biggest increase was in 2019 with a 13.1% rise.

Annual dynamics of product's exports from South America in value, 2017-2020, M $ US

The partner structure for exports in value terms from 2017 to 2020 was fragmented. The United States represented 12.8% of exports in value, the Netherlands 9.6%, and Mexico 2.4%, together accounting for just 24.7% of total flows. No single country held a dominant share.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports cocoa powder and cake to South America

Imports in kind, t

Cocoa powder and cake imports into South America increased for the third consecutive year. In 2020, imports totaled 74 066 tons, representing a strong gain of 20.9% compared to the previous year. Over the 2017-2020 period, imports grew by 50.3%, with a compound annual growth rate of 14.5%.

Annual dynamics of product's imports to South America in kind, 2017-2020, t

From 2017 to 2020, Indonesia was the largest supplier of cocoa powder and cake to South America, accounting for 16.1% of imports in kind, followed by Spain at 9.8% and Malaysia at 9.1%. Together, these three countries made up 34.9% of total imports, with the rest coming from a diverse array of smaller partners.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, M $ US

In 2020, the value of cocoa powder and cake imports into South America amounted to 176.7 million US dollars, showing a 26.6% advance versus the previous year. Between 2017 and 2020, imports increased by 31.7%, equating to an annualized rate of 9.6%. The largest decline was recorded in 2019 with a 9.1% drop.

Annual dynamics of product's imports to South America in value, 2017-2020, M $ US

The structure of imports in value terms from 2017 to 2020 was diversified. Indonesia accounted for 12.9% of imports in value, Spain for 9.9%, and Malaysia for 9.3%, together representing just 32.1% of total flows. No country held a clearly dominant position.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020