Cocoa Butter Equivalent Market - Forecasts from 2025 to 2030

The cocoa butter equivalent market is estimated to attain a market size of US$2.00 billion by 2030, growing at a 6.27% CAGR from a valuation of US$1.47 billion in 2025.

The cocoa butter equivalent (CBE) market is experiencing robust growth, driven by the need for cost efficiency, rising sustainability expectations, and the functional advantages CBEs offer in product formulation. Companies that prioritize clean-label and sustainable CBEs and focus on expanding into emerging markets are well-positioned to lead the industry. Recent innovations in the sector include the development of CBEs using non-hydrogenated and fractionated plant-based fats.

Market Trends

• High Cocoa Butter Costs and Supply Volatility: Limited cocoa bean supply and fluctuating prices have made palm oil an attractive alternative for manufacturers aiming to maintain product quality while reducing costs. The International Cocoa Organization (ICCO) reports a decline in global cocoa production from 4.99 million metric tons in 2022/23 to 4.44 million metric tons in 2023/24, with end-of-year stocks dropping from 1.76 million metric tons to 1.39 million metric tons. This supply reduction, coupled with rising demand for cocoa butter products, has driven sharp price increases, prompting manufacturers to turn to cost-effective, vegetable-based cocoa butter equivalents.
• Increased Palm Oil Adoption: Palm oil serves as a cost-effective substitute for cocoa butter across various industries due to its lower price compared to cocoa beans. In October 2024, the India Sustainable Palm Oil Manifesto was launched by IDH at the Sustainable Trade Summit 2024, promoting sustainable palm oil sourcing in India and raising consumer awareness of responsibly sourced palm oil. This initiative is backed by stakeholders including Godrej Agrovet, Patanjali Foods, AAK, 3F Oil Palm, and Emami Agrotech.
• North American Market: The United States, a major cocoa importer, is seeing growing demand for cost-effective alternatives that deliver similar taste and functionality in confectionery products. Rising health consciousness and preference for plant-based ingredients are further boosting market growth. According to the National Confectioners Association, U.S. confectionery sales reached $54 billion in 2024, a 12.5% increase from 2023, with chocolate sales contributing $28.1 billion. By 2029, confectionery sales are projected to hit $70 billion.

Some of the major players covered in this report include Cargill Incorporated, Usha Edible Oil, Wilmar International Ltd, Manorama Industries Limited, Makendi Worldwide, and Intercontinental Specialty Fats Sdn. Bhd., Olenex Sarl, Fuji Oil Europe, Olam International, Bunge, Mallinath Group, Olenex Sarl, and AAK AB among others.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

How can the data from this report be utilized?

Industry & Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, and Competitive Intelligence.

Report Coverage

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Cocoa Butter Equivalent Market is analyzed into the following segments:

By Material Type

• Palm Oil
• Coconut Oil
• Shea Butter
• Others

By Distribution Channel

• Online
• Offline

By Application

• Food and Beverages
• Cosmetics
• Pharmaceutical
• Others

By Region

• North America
  • United States
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Spain
  • Others
• Middle East & Africa
  • Saudi Arabia
  • Israel
  • Others
• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Others