Kerry possesses the expertise and experience in sourcing and extracting cocoa, enabling it to offer a wide range of cocoa extracts to customers who utilize them in liquid, powder, or granulated forms. Recent applications for these ingredients include ice cream, confectionery, soft drinks, yogurt, desserts, fillings, nutritional drinks, and even savory items. However, the global cocoa crop faces increasing challenges due to climate change, deforestation, child labor, and low incomes for farmers. Concurrently, demand for cocoa is surging, driven by the rising popularity of premium varieties, dark chocolate, and sugar-free options. The U.S. chocolate market was valued at approximately $22 billion in 2016 and is projected to exceed $30 billion by 2021, according to TechSci Research.
While chocolate products with sugar or sweeteners are generally considered indulgent, some consumers view certain cocoa forms, particularly raw and dark chocolate, as healthy dietary additions. A 2017 report from Research and Markets projected a 2.4% annual growth rate for the global chocolate market through 2021, with a specific focus on healthier options. Given the already high demand for cocoa, marketing products containing cocoa as a healthy addition to diets may not yield the expected results. However, manufacturers might want to emphasize the variety of flavors and sourcing, allowing consumers to explore different origins. This approach could be both intriguing from a culinary standpoint and financially beneficial for those already established in the market, particularly if the ingredient list is simplified to meet clean-label standards, while also providing information about the product’s origins.
Speculation exists that without certain agricultural measures—such as keeping cacao trees cool, diversifying crops, breeding more resilient trees that can withstand warmer climates, and ensuring proper irrigation—cocoa prices could become unmanageable by 2030. This scenario would likely be unfavorable for Kerry, Hershey, and other chocolate manufacturers, as well as for the millions of cocoa enthusiasts globally.
As Kerry aims to broaden its offerings, it must consider the sources of its cocoa. The company may need to proactively strategize for the future as demand escalates and sourcing becomes increasingly challenging. Kerry assists businesses in reformulating their products concerning ingredients, which means the Irish company could have an extensive list of sources to support beverage, bakery, and confectionery companies cost-effectively. Additionally, there is potential for innovative combinations, such as pairing cocoa products with orange juice with calcium citrate, which could appeal to health-conscious consumers. If Kerry can successfully implement these strategies, it may capture a larger share of the expanding chocolate market.