Cocoa Butter Equivalent Market Size, Share, Opportunities, And Trends By Type (Palm Oil, Coconut Oil, Shea Butter, Others), By Application (Food and Beverages, Cosmetics, Pharmaceutical, Others), By Distribution Channel (Online, Offline (Supermarket, Hypermarket, Retailers, Others)), And By Geography- Forecasts From 2025 To 2030

The cocoa butter equivalent market is estimated to attain a market size of US$ 2,004.872 million by 2030, growing at a 6.27% CAGR from a valuation of US$ 1,479.363 million 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.

These advancements have enabled manufacturers to create CBEs that closely replicate the physical and chemical properties of natural cocoa butter, all while minimizing the use of artificial processing or additives. Further, many countries only permit up to 5% vegetable fat replacement in products labelled as “chocolate.” For manufacturers seeking to comply with these standards, specialized CBE solutions like the CHOCOMATE and CHOCOMATE EZ  series from Intercontinental Specialty Fats Sdn. Bhd. provide an effective alternative. These CBEs are designed to be easily incorporated into chocolate formulations without compromising the crystallization quality that consumers expect from premium chocolate.

Cocoa Butter Equivalent Market Overview & Scope

The cocoa butter equivalent market is segmented by:

• Type: By type, cocoa butter equivalent market is segmented into palm oil, coconut oil, shea butter, others. Shea butter is gaining traction for its natural properties and ethical sourcing, especially in premium cosmetics and chocolates.
• Distribution Channel: By distribution channel, the cocoa butter equivalent market is segmented into online and offline. The offline channels dominate, particularly in bulk industrial sales to food and cosmetic manufacturers.
• Application: By application, the cocoa butter equivalent market is segmented into food and beverages, cosmetics, pharmaceuticals, and others.  The food industry remains the major segment, driven by chocolate manufacturers seeking cost-efficient alternatives to cocoa butter.
• Region: Asia Pacific is poised to hold a prominent position in the cocoa butter equivalent market, particularly due to the increasing disposable income in the region. Further, the rapid expansion of the middle class in emerging markets across Asia-Pacific, Africa, and Latin America is driving a notable increase in chocolate consumption, as rising disposable incomes and changing consumer preferences make chocolate more accessible and desirable.

Cocoa Butter Equivalent Market Growth Drivers vs. Challenges

Drivers:

• High Cocoa Butter Prices and Supply Instability: The cocoa bean supply is limited, along its prices are dynamic, which makes palm oil a favorable choice by manufacturers who are focused on maintaining product quality at a lower production cost. According to data from the International Cocoa Organization (ICCO), the global production and end-of-year stock of cocoa has witnessed a decline from production being at 4,996 thousand metric tons in 2022/23 to 4,449 thousand metric tons in 2023/24. Moreover, the end-of-year stock was reported to account for 1,395 thousand metric tons in 2023/24 from 1,769 thousand metric tons in 2022/2023. This decrease in data, with a continuous increase in consumption related to cocoa butter products, leads to a sharp increase in prices.  This propels the manufacturers to rely on vegetable-based cocoa butter equivalents as a cost-effective alternative.
• Growing Demand for Confectionary Products: The demand for coca butter equivalent products is increasing in demand in the food and beverage sector. The market is valued for providing a cost-effective substitute for cocoa butter in diverse food and beverage options, mainly in confectionery and chocolate production. They are an ideal substitute in the industry due to their offering of similar texture to cocoa butter, along with similar melting and taste ability, which makes them an ideal choice for maintaining food and beverage products' quality at an affordable price. Moreover, according to the estimates from United States Department of Agriculture (USDA), chocolate market in South Korea is significant with the sales recorded in 2023 was about $578 million and the chocolate import was valued for $536 million in 2023 while the United States is accounted for major market share in import with twenty one percent.
• Rise in Use of Palm Oil: Palm oil is used as a substitute used in place of cocoa butter in diverse industries due to its lower cost as compared to the cocoa bean price. In addition, in October 2024, the India Sustainable Palm Oil Manifesto was introduced by IDH at the Sustainable Trade Summit 2024 with a focus on the sustainable sourcing of palm oil in India, with increasing awareness among consumers on the benefits of responsibly sourced palm oil. this initiative is supported by diverse stakeholders such as Godrej Agrovet, Patanjali Foods, AAK, 3F Oil Palm, and Emami Agrotech.

Additionally, as per USDA data of February 2025, the United States reported a continuous decrease in imports of cocoa beans since 2021 due to a shrinking of cocoa crop harvest, leading to an increase in price of cocoa beans globally by 310 percent which is $10,412 per metric tons in December 2024 which is a all time high. This provides an opportunity for the palm oil segment as it is similar in function to a lower alternative, which will promote its utilization in the production of diverse products.

Challenges:

• Quality concerns: Quality concerns, including perceived inferiority, authenticity debates, health issues, and sustainability challenges, significantly hinder the market’s growth, particularly in premium and health-conscious segments.

Cocoa Butter Equivalent Market Regional Analysis

• North America: The United States is one of the major cocoa importers, and with the growing demand for confectionary products, the demand for cost-effective alternatives that provide the same taste & flavors and price utility is expected to show positive growth in the country. Moreover, the growing health consciousness and awareness regarding the usage of plant-based ingredients have furthered the overall market growth. According to the National Confectioners Association, the total confectionery sales in the country reached US$54 billion, which represented a 12.5% growth over the 2023 sales Figure, Moreover, the same source also specified that by 2029, the confectionery sales will reach up to US$70 billion. Chocolate sales accounted for a major share, with a sales volume of US$28.1 billion in the same year.

Cocoa Butter Equivalent Market Competitive Landscape

The market is fragmented, with many notable players, including Cargill Incorporated, Usha Edible Oil, Wilmar International Ltd, Manorama Industries Limited, Makendi Worldwide, and Intercontinental Specialty Fats Sdn. Bhd., Olenex Sàrl, Fuji Oil Europe, Olam International, Bunge, Mallinath Group, Olenex Sàrl, and AAK AB, among others.

• Product Launch: In June 2024, Bloomer Chocolate Company launched “Elevate” confectionery products that are based on cocoa butter equivalent (CBE) technology that provides seamless integration of cocoa butter with its equivalent, thereby improving the overall visual appeal and shelf life of the product.

Cocoa Butter Equivalent Market Segmentation:

By 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

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1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5. COCOA BUTTER EQUIVALENT MARKET BY TYPE

5.1. Introduction

5.2. Palm Oil

5.3. Coconut Oil

5.4. Shea Butter

5.5. Others

6. COCOA BUTTER EQUIVALENT MARKET BY DISTRIBUTION CHANNEL

6.1. Introduction

6.2. Online

6.3. Offline

7. COCOA BUTTER EQUIVALENT MARKET BY APPLICATION 

7.1. Introduction

7.2. Food and Beverages

7.3. Cosmetics

7.4. Pharmaceutical

7.5. Others

8. COCOA BUTTER EQUIVALENT MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Tye

8.2.2. By Distribution Channel 

8.2.3. By Application

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Tye

8.3.2. By Distribution Channel 

8.3.3. By Application

8.3.4. By Country

8.3.4.1. Brazil 

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Tye

8.4.2. By Distribution Channel 

8.4.3. By Application

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. France

8.4.4.3. United Kingdom 

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East & Africa

8.5.1. By Tye

8.5.2. By Distribution Channel 

8.5.3. By Application

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. Israel

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Tye

8.6.2. By Distribution Channel 

8.6.3. By Application

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. South Korea

8.6.4.4. India

8.6.4.5. South Korea

8.6.4.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Cargill, Incorporated 

10.2. Usha Edible Oil 

10.3. Wild Oils 

10.4. Wilmar International Ltd 

10.5. Manorama Industries Limited 

10.6. Makendi Worldwide 

10.7. Intercontinental Specialty Fats Sdn. Bhd. 

10.8. Fuji Oil Europe 

10.9. Mewah Group 

10.10. Olam International 

10.11. FGV IFFCO SDN BHD 

10.12. Bunge

10.13. Mallinath Group 

10.14. Olenex Sàrl 

10.15. AAK AB 

10.16. Blommer Chocolate

11. APPENDIX

11.1. Currency 

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology 

11.6. Abbreviations 

Cargill, Incorporated 

Usha Edible Oil 

Wild Oils 

Wilmar International Ltd 

Manorama Industries Limited 

Makendi Worldwide 

Intercontinental Specialty Fats Sdn. Bhd. 

Fuji Oil Europe 

Mewah Group 

Olam International 

FGV IFFCO SDN BHD 

Bunge

Mallinath Group 

Olenex Sàrl 

AAK AB 

Blommer Chocolate