Indonesia Cocoa & Cocoa Products Market- Trend Analysis & Forecast to 2030

The Indonesia cocoa and cocoa products market was valued at US$ ** billion in 2023, with cocoa beans production volumes reaching 160 thousand tonnes. The market is expected to expand at a compound annual growth rate (CAGR) of **% from 2020 to 2030. Indonesia is one of the top cocoa-producing nations globally (especially in Asia), with significant contributions to the world’s cocoa supply. The country’s market is witnessing dynamic changes driven by demand shifts, technological advancements, and sustainability measures. This report highlights the trends, challenges, and future forecasts of Indonesia's cocoa and cocoa products market up to 2030.

Market/ Product Overview

Indonesia's cocoa and cocoa products market plays a pivotal role in the global cocoa supply chain. It ranks first in Asia in cocoa production, making it a crucial player in meeting the rising demand for cocoa-based products, including chocolate and other confectioneries. The market is anticipated to grow steadily due to increasing domestic and global demand for premium cocoa. Factors such as improved farming practices, government support, and a shift towards sustainable farming methods are propelling the market forward. However, challenges like aging plantations and climate change need to be addressed to ensure long-term growth.

Indonesia’s Significance in the Global Cocoa & Cocoa Products Supply

Indonesia is critical to the global cocoa supply chain as it is one of the top exporters of cocoa beans and processed cocoa products. The country's strategic location and production capacity make it a key supplier to major cocoa-processing industries in Europe, Asia, and North America, thereby maintaining its significant role in the international market.

Indonesia Cocoa & Cocoa Products Production & Demand Trend

Indonesia's cocoa production has fluctuated in recent years due to various factors, including aging plantations and diseases. However, with increased investments in modern farming techniques and sustainability practices, production is expected to stabilize. The demand for Indonesian cocoa is rising due to the growing global preference for high-quality, sustainable cocoa, which has improved the market outlook for the coming decade.

According to International Cocoa Organization (ICCO), Indonesia cocoa production is estimated at 160 thousand tonnes for 2023/24. Indonesia's cocoa grinding capacity has been steadily increasing, driven by a rising focus on value-added processing within the country. The country grinding of cocoa stood at 402 thousand tonnes in 2022/23. The Indonesian government and private sector investments in grinding facilities have made Indonesia a leading cocoa grinder in Asia, with major players expanding their processing capabilities. This trend aligns with the global shift towards processed cocoa products, boosting local economic value and catering to growing international demand for cocoa derivatives.

Indonesia Cocoa & Cocoa Products Market Growth Factors

The growth of the Indonesia cocoa market is influenced by various factors, such as rising consumer demand for chocolate and other cocoa-based products. Government policies supporting cocoa farming, technological advancements in agricultural practices, and an increasing focus on sustainability are driving production. Furthermore, the shift towards value-added products, such as cocoa butter and powder, has contributed to market expansion, with manufacturers increasingly investing in processing facilities.

Indonesia Cocoa & Cocoa Products Market Restraints & Challenges

Despite its global significance, Indonesia’s cocoa market faces several challenges. Aging cocoa trees, inadequate infrastructure, and susceptibility to pests and diseases are major obstacles. Additionally, farmers face difficulties in adopting modern agricultural practices due to financial constraints, while the fluctuating international prices of cocoa beans impact their profitability. Climate change also poses a significant threat to cocoa production in Indonesia, as changing weather patterns affect crop yields.

Indonesia’s Cocoa Industry: Supply Chain Constraints and Value Chain Challenges

The supply chain in Indonesia's cocoa industry is fraught with challenges, including limited access to quality planting materials and modern farming tools. Small-scale farmers, who make up the majority of cocoa producers, struggle with inefficient supply chain management and inadequate training in post-harvest processing. Furthermore, transportation and logistical bottlenecks, particularly in remote regions, contribute to higher production costs and impact market competitiveness.

Price Setting Power of Indonesia in Global Cocoa & Cocoa Products Value Chain

Indonesia holds considerable market-setting power in the global cocoa industry due to its role as a major supplier of both raw cocoa beans and processed products. The country’s strategic positioning in Southeast Asia, combined with increasing investments in cocoa processing, strengthens its influence in price-setting and trade negotiations within the international cocoa market.

Cocoa & Cocoa Products End-use Industries

The primary end-use industries for Indonesian cocoa and cocoa products include confectionery, bakery, beverages, and cosmetics. Cocoa butter and powder are extensively used in the production of chocolates and other confectionery items, while cocoa is also gaining popularity in the health food segment due to its antioxidant properties. Additionally, cocoa-based products are used in the cosmetics industry for their moisturizing benefits.

Cocoa ingredients are a key supply for both consumer product manufacturers in the food and beverage industry and industrial chocolate producers. Consumer chocolate manufacturers focus on creating branded chocolate products and a variety of chocolate confectioneries. On the other hand, industrial chocolate producers manufacture couverture and specialized chocolate products, which they supply not only to chocolate manufacturers but also to food and beverage companies. These companies utilize industrial chocolate as an essential ingredient in a range of products, including biscuits, ice creams, and baked goods.

Products derived from Cocoa

■ Cocoa Beans: Raw beans are sold to processors or exported globally for further processing.
■ Cocoa Liquor (Mass): The ground nibs form a paste known as cocoa mass, used as a base ingredient in chocolate production.
■ Cocoa Butter: A key ingredient in chocolate and confectionery, it is also used in cosmetics, pharmaceuticals, and skincare products.
■ Cocoa Powder: Used in beverages, baking, ice creams, and other confectionery products.
■ Chocolate: Various forms of chocolate, including dark, milk, and white, used in confections, bars, and baked goods.
■ Cocoa-Based Beverages: Cocoa is processed into powders or syrups for use in hot chocolate and other beverages.
■ Cocoa Spreads and Confections: Nut-based spreads containing cocoa, such as chocolate hazelnut spread, and cocoa-flavored confections.

By-products of Cocoa Processing:

■ Cocoa Husks (Pod Husks): Used as animal feed, compost and fertilizer, and biofuel
■ Cocoa Shells: Used as animal feed, mulch and fertilizer, and extraction of theobromine.
■ Cocoa nibs: After winnowing, the leftover nibs are sold as a healthy snack or ingredient for baking and confections.
■ Cocoa Sweatings: The liquid by-product from the fermentation of cocoa beans, used in some regions to produce alcoholic beverages or as a natural sweetener.

Indonesia Chocolate Production & Consumption Trend

Chocolate production in Indonesia has seen notable growth as local and international manufacturers expand their operations to meet rising domestic and regional demand. The increase in disposable income, urbanization, and a growing middle class are fueling chocolate consumption, particularly in urban areas. This trend is expected to continue, with local consumers showing a preference for premium and health-oriented chocolate products, contributing to a more diverse chocolate market in the country. The Indonesia chocolate confectionery market was valued at USD 815 million in 2022 and is expected to experience a CAGR of 6.5% from 2022 to 2030. In comparison, the overall confectionery products market is growing at a CAGR of 7.7%.

Indonesia Cocoa & Cocoa Products Trade (Export & Import) Trend

Indonesia is a key exporter of cocoa beans, cocoa butter, and cocoa powder, with its primary markets being the European Union, the United States, and several Asian countries. In recent years, Indonesia has increasingly focused on value-added cocoa exports, such as processed cocoa products, to capture a larger share of the global market. However, the country also imports cocoa beans, primarily from West African countries, to meet the growing demand of its domestic processing industries, creating a balanced trade scenario.

In 2023, Indonesia's exports of cocoa and cocoa preparations amounted to USD 1.20 billion. The main destinations for these exports were India, the USA, China, Malaysia, and Estonia. Cocoa butter (fat and oil) was the leading cocoa product exported by Indonesia, with a total export value of USD 627.42 million. In the same year, Indonesia imported cocoa beans valued at USD 732.28 million, along with cocoa and cocoa preparations worth USD 247 million.

Indonesia Cocoa & Cocoa Products Market Competitive Analysis

The Indonesia cocoa market is competitive, with both local and international companies vying for market share. Major players are investing in improving production efficiency, enhancing product quality, and adopting sustainable practices. Local cooperatives also play a crucial role in ensuring fair trade practices and improving the livelihood of small-scale farmers. The competition is expected to intensify as global demand for premium and sustainable cocoa rises.

List of Key Companies in Indonesia Cocoa & Cocoa Products Market (Manufacturers/Suppliers/ Exporters),

■ PT Cargill Indonesia
■ Barry Callebaut Group
■ PT Bumitangerang Mesindotama
■ PT Kakao Mas Gemilang
■ JB Cocoa Indonesia
■ Mars Indonesia
■ Nestlé Indonesia
■ Olam International
■ PT Davomas Abadi Tbk
■ PT Perkebunan Nusantara XII
■ PT Sinar Mas Agro Resources and Technology
■ PT Indo Cocoa
■ Ecom Agroindustrial Corp
■ Delfi Limited
■ PT Mayora Indah Tbk

Future Outlook

The future of Indonesia’s cocoa market is promising, with projected growth driven by increasing global demand for premium and sustainable cocoa products. Investments in technology, sustainability, and value-added production are expected to enhance competitiveness. However, addressing supply chain bottlenecks and improving infrastructure will be crucial in ensuring that Indonesia retains its position as a leading global cocoa supplier by 2030.