The cocoa market - France

The global cocoa market is largely concentrated in Africa, with Côte d'Ivoire and Ghana producing over 60% of the world's cocoa beans, contributing to a total output exceeding 4 million tonnes annually. 

Ever-growing Appetite for Responsibly Sourced Indulgence: French Chocolate Consumption Trends

The French market exhibits a discernible trend towards ethical consumption while maintaining a strong demand for chocolate. Annually, the average French individual indulges in between 7 and 8 kilograms of chocolate, positioning France among the top six chocolate-consuming nations globally. This appetite for chocolate is a mix of different types, with approximately a third being dark chocolate and a minority, around 4%, being organic chocolate, which points towards a conscious shift in consumer preferences.

Breaking down the sales within this sweet sector, chocolate bars emerge as the popular choice, with over a third of the total chocolate volume sold being in this format. The market is also responsive to special dietary preferences and trends, with the organic segment gaining ground. The organic chocolate market, while still a smaller fraction of the industry, had a market share of about 4% in 2021, an increase from 3.8% in the previous year. This figure is representative of the organic craze sweeping through the nation, where France stands as the second-largest European market for organic products, with sales reaching between 12 and 13 billion euros.

In terms of market structure, a large proportion of the chocolate available in France is imported, with the nation importing chocolate worth between 3 and 4 billion dollars and exporting to the tune of between 2 and 3 billion dollars in 2021. The import-export coverage rate has hovered slightly below 60% in recent years, underscoring France's role as a significant net consumer in the global chocolate market. The rise in preference for organic products, in general, is substantial, with between 70 and 75% of French consumers expressing a reinforced inclination towards responsible consumption post the health crisis. However, they equally acknowledge the challenge of forgoing imported goods such as chocolate, which for many remains an irresistible treat.

Consequently, the Bean-to-bar phenomenon, which encapsulates direct control from cocoa bean procurement to chocolate bar production, echoes these trends and ambitions. Despite being a niche with approximately 60 chocolatiers in this category, including renowned names, it represents a burgeoning sector that aligns with ethical, sustainable, and qualitative consumption philosophies embraced by a growing number of French consumers. As the trend continues to gain traction, Bean-to-bar may redefine French chocolate consumption, promoting an industry that prides itself on transparency, fairness, and a smaller environmental footprint.

Legislation in France strictly regulates cocoa and chocolate production and labeling, with various VAT rates—standard at 20% and reduced at 5.5%—depending on the product category. The chocolate industry has called for the standardization of VAT rates to boost competitiveness and consumption.

Key Cocoa and Chocolate Industry Players: Domination by Multinational Titans and Selective Artisanal Influencers

Within the dynamic and complex world of cocoa and chocolate production, several key players stand out for their significant impact on the global market. These companies, often multinational conglomerates, exert substantial influence over various stages of the cocoa value chain, from sourcing and processing to the manufacturing of finished chocolate goods.

• At the forefront of the upstream cocoa industry are the farmers—the primary source of cocoa bean cultivation. They lay the foundations of the supply chain, handling the labor-intensive tasks of planting, harvesting, and drying cocoa beans. While these smallholder farmers are prolific in numbers, producing approximately 80% of the world’s cocoa supply, they often operate on family plantations averaging less than 10 hectares in size. Despite their crucial role, these farmers tend to have limited market power and face vulnerabilities to the volatility of global commodity prices.
  
  
• Transitioning to the downstream segment of the cocoa pipeline, we encounter some of the Western world's dominant multinational corporations. These giants control a large share of the cocoa mass production, a critical semi-finished product for the entire chocolate industry. This includes tasks such as cleaning, drying, roasting, hulling, and grinding of beans, with activities centralized in developed regions like Europe and the Americas. Notably, a small cluster of global conglomerates presides over an outsized portion of this market segment, exhibiting considerable control over the supply and price of these essential cocoa derivatives.
  
  
• In the realm of chocolate manufacturing and distribution, ten principal companies emerge as the titans, collectively owning 42% of the chocolate products' final market share. Their operations span from producing industrial couverture chocolate to an array of confectionery goods that eventually find their way to the hands of consumers. Here again, there is a marked concentration of power, with these leading corporations having the ability to shape consumer trends, dictate pricing structures, and set industry standards.
  
  
• On the artisanal side, the 'Bean-to-bar' movement represents a niche yet growing segment of chocolate producers committed to ethical sourcing and premium product quality. Although these artisanal chocolatiers occupy a much smaller portion of the market when compared to their industrial counterparts, they wield considerable influence in setting trends for sustainability and craftsmanship in chocolate production.
  
  
• Renowned names such as Bonnat, Pralus, Bernachon, and Ducasse stand out, reflecting a commitment to quality and ethical practices that resonate with the evolving desires of consumers for responsible consumption. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 15/11/2021

Summary and extracts

List of charts

• Cocoa production
• Distribution of cocoa-producing countries
• Breakdown of cocoa product imports
• Foreign trade in cocoa
• Main cocoa importers
• Major cocoa exporters
• Production value of main cocoa products
• Values of cocoa-based by-products
• Main chocolate-consuming countries
• Breakdown of chocolate products purchased
• Main consumers of organic products
• Evolution of the percentage of organic food preferences
• Cocoa prices over the months
• Sales of fair trade products
• Distribution of grinding capacity within the cocoa processing industry