Cocoa shells, husks, skins and waste market in CIS

Earlier Report Observations

The market volume for cocoa shells, husks, skins, and waste in the CIS exhibited significant fluctuations between 2018 and 2023. This period began with substantial government regulation and investment in the chocolate and cocoa products industry in Russia, supporting initial market levels. Subsequent years saw shifts influenced by evolving consumer demand for cocoa products and phytosanitary controls on imports. The market reached its peak in 2022, a period characterized by stability in the number of producers despite some foreign companies exiting the Russian chocolate market, alongside global price increases for cocoa and shifts in consumer preferences toward more affordable sweets with lower cocoa content.

Market dynamics were further shaped by factors affecting the primary cocoa processing industry. Following the peak in 2022, the market declined in 2023. This occurred despite an 8% growth in chocolate and cocoa product production in Russia, which was driven by revived domestic demand and expanded manufacturing capacity. The decline in the waste market can be attributed to a significant increase in cocoa bean prices, which made up to half of chocolate's production cost, coupled with a consumer shift toward more budget-friendly confectionery containing less cocoa. The ongoing diversification of cocoa bean supplier countries, now up to 28, under sanctions and import constraints also altered the supply chain structure.

The factors influencing the market intensified toward the end of the period. Record price increases for cocoa beans, driven by global supply shortages and adverse weather in major producing countries like Côte d'Ivoire and Ghana, significantly impacted raw material costs. From May 2024, the introduction of import duties on cocoa paste and cocoa butter/fat, while beans remained duty-free, created new conditions for processors. Concurrently, consumer preferences continued to move decisively away from high-cocoa chocolate, with consumption falling by 17% in volume, toward segments like marshmallows and gummy candies, affecting the generation of cocoa by-products.

Production cocoa shells, husks, skins and waste in CIS

In kind, 2017-2020, t

Top producers of cocoa shells, husks, skins and waste, 2017-2020

World map of production of cocoa shells, husks, skins and waste, 2017-2020

In 2019, production of cocoa shells, husks, skins and waste in CIS reached its lowest point at 2 110 t, marking a significant 31.0% decline from the previous year. Production then rebounded sharply in 2020, increasing by 36.0% to 2 870 t. Over the 2017-2020 period, production grew by 19.7%, with an average annual growth rate of 6.2%. The highest production level was recorded in 2018 at 3 060 t.

Annual dynamics of production in CIS in kind, 2017-2020, t

Exports cocoa shells, husks, skins and waste from CIS

Exports in kind, t

CIS exports of cocoa shells, husks, skins and waste showed considerable volatility during this period. In 2017, export volumes hit their lowest point, then surged by 121.4% in 2018 to reach a peak of 417.8 t. This was followed by a sharp 43.1% decline in 2019, before exports recovered in 2020 with a 29.3% increase to 307.3 t. Overall, export volumes varied 2.2 times between the 2017 low and 2018 high.

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

Between 2017 and 2020, Ukraine and the United States dominated CIS exports of cocoa shells, husks, skins and waste in volume terms, together accounting for 70.9% of total export flows.

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

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

Exports in value, K $ US

CIS exports of cocoa shells, husks, skins and waste in value terms declined for two consecutive years before rebounding in 2020. The lowest value was recorded in 2019 at 50.7 K $ US, representing a 44.7% drop from the previous year. In 2020, exports increased by 33.3% to reach 67.6 K $ US. Over the 2017-2020 period, export values decreased by 34.7%, with an average annual decline of 13.3%.

Annual dynamics of product's exports from CIS in value, 2017-2020, K $ US

Throughout the 2017-2020 period, Ukraine and the United States remained the primary destinations for CIS exports of cocoa shells, husks, skins and waste in value terms, together representing 30.1% of total export revenue.

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

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

Imports cocoa shells, husks, skins and waste to CIS

Imports in kind, t

CIS imports of cocoa shells, husks, skins and waste in volume terms declined for three consecutive years. In 2020, imports fell by 27.5% to 111.2 t. Over the 2017-2020 period, import volumes decreased substantially by 88.6%, with an average annual decline of 51.5%.

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

Between 2017 and 2020, Ghana, Indonesia, and Turkey emerged as the main sources of cocoa shells, husks, skins and waste imports to CIS in volume terms. Ghana accounted for 35.9% of imports, Indonesia for 14.1%, and Turkey for 7.9%, with these three countries together representing 58.0% of total import flows.

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

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

Imports in value, K $ US

After declining for two years, CIS imports of cocoa shells, husks, skins and waste in value terms showed a modest recovery in 2020. The lowest import value was recorded in 2019 at 92.0 K $ US, following a substantial 54.6% decline in 2018. In 2020, imports increased by 4.5% to reach 96.1 K $ US. Over the 2017-2020 period, import values decreased by 75.1%, with an average annual decline of 37.1%.

Annual dynamics of product's imports to CIS in value, 2017-2020, K $ US

During the 2017-2020 period, three key markets — Ghana, Turkey, and Indonesia — together accounted for 53.6% of the total value of cocoa shells, husks, skins and waste imports to CIS.

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

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