Not defatted cocoa paste market in Sri Lanka

Earlier Report Observations

The market volume for not defatted cocoa paste in Sri Lanka contracted significantly from 1 712 t in 2018 to 1 069 t in 2020. This decline coincided with reduced yields in the plantation sector, which limited raw material availability for cocoa-based products, and an economic downturn with inflation that suppressed consumer demand for food goods.

After 2020, the market showed an uneven recovery, rising to 1 197 t in 2021, then dipping to 1 150 t in 2022 before reaching 1 229 t in 2023. During this period, authorities prepared new regulations such as the Food (Labelling & Advertising) Regulations 2022, which are scheduled to take effect in 2025 and will introduce stricter rules on packaging and marketing targeted at children.

In 2024, regulatory activity remained active with the Consumer Affairs Authority issuing directions on labeling, price marking, and packaging for food products, while Sri Lanka Customs updated tariff guides affecting cocoa paste under HS code 1801.00. These measures may influence import costs and market access for the product.

Production not defatted cocoa paste in Sri Lanka

In kind, 2017-2020, t

Top producers of not defatted cocoa paste, 2017-2020

World map of production of not defatted cocoa paste, 2017-2020

Sri Lanka's production of not defatted cocoa paste has declined for the second year in a row. In 2020, the country produced 927 tonnes, which represents a 25.9% decrease compared to 2019. Looking at the period from 2017 to 2020, overall production fell by 17.4%, averaging an annual decline of 6.2%. The highest production level was recorded in 2018 at 1 730 tonnes. That year also saw the largest increase of 54.1%. In contrast, 2019 experienced the most significant drop with a 27.6% reduction.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports not defatted cocoa paste from Sri Lanka

Exports in kind, t

The export data shows irregular fluctuations, pointing to a volatile market environment. Exports reached their lowest point in 2017 and peaked in 2018, with a dramatic 35-fold difference between these two years. In 2020, Sri Lanka exported 6.0 tonnes of not defatted cocoa paste, which is a sharp 92.9% decrease from the previous year. The maximum export volume was recorded in 2018 at 104.1 tonnes, marking an extraordinary increase of 3 369.2% that year.

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

From 2017 to 2020, India was overwhelmingly the primary destination for Sri Lanka's exports of not defatted cocoa paste in volume terms, accounting for 98.2% of total shipments.

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

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

Exports in value, K $ US

The export market displayed considerable volatility during the observed period. Exports hit their lowest point in 2017 and reached their highest in 2018, with a staggering 121-fold variation between these years. In 2020, Sri Lanka's exports of not defatted cocoa paste were valued at 23.9 thousand US dollars, reflecting a steep 92.8% year-over-year decline. The peak value occurred in 2018 at 429.8 thousand US dollars, accompanied by an exceptional increase of 12 010.3% that year.

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

Between 2017 and 2020, India dominated as the main destination for Sri Lanka's exports of not defatted cocoa paste in value terms, representing 99.2% of total export flows.

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

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

Imports not defatted cocoa paste to Sri Lanka

Imports in kind, t

Sri Lanka's imports of not defatted cocoa paste have increased for the third consecutive year. In 2020, imports totaled 148.0 tonnes, showing a sharp 68.7% rise compared to 2019. Over the 2017-2020 period, imports grew by 321.6%, with a compound annual growth rate of 61.5%.

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

During 2017-2020, Sri Lanka's imports of not defatted cocoa paste in volume terms were primarily sourced from Malaysia and Indonesia, which together accounted for 87.0% of total imports, while other countries played a more minor role.

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

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

Imports in value, K $ US

The value of Sri Lanka's imports of not defatted cocoa paste has risen for the third year in a row. In 2020, import value reached 586.4 thousand US dollars, indicating a sharp 73.0% increase from the previous year. From 2017 to 2020, import value expanded by 331.5%, with a compound annual growth rate of 62.8%.

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

From 2017 to 2020, Indonesia and Malaysia remained the key sources for Sri Lanka's imports of not defatted cocoa paste in value terms, jointly representing 85.0% of total import flows, while other partners were individually much less significant.

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

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