Cocoa Market Research
What is Cocoa Market research?
Cocoa Market Research refers to the analysis of the commercial prospects of the byproducts of cocoa. It specifically focuses on the market penetration of cocoa powder and chocolate, the two extremely popular products that come from cocoa beans.
Key market insights, challenges in the production process and price fluctuations on the stock market are essential aspects of research on the cocoa market. In addition, cocoa market research includes both regional and qualitative differentiation as well as the cost of production for product families.
Why is Cocoa Market Research Important?
Cocoa and chocolate are among the most popular and well-known products around the world. The production process nevertheless requires multi-layered management because there are different steps of action before the final products reach the consumers. All executives and investors should be well aware of both the sources of profit and risks of the cocoa industry. There are opportunities to grab together with risks to consider. Factors like weather, socioeconomic conditions, human rights and a balanced share of profits are significant. The global appeal of cocoa products opens up numerous possibilities for business expansion and presents lucrative investment opportunities. On the other hand, cocoa market research reveals all new information related to the risk assessment of cocoa production.
Cocoa is found in certain regions of Africa, Latin America and South Asia because it needs heat and humidity for growing. Water is vital for the existence of cocoa trees. The climate crisis imposes dangers to consider and challenges to overcome. Additionally, there are environmental issues, such as deforestation and loss of biodiversity as well as humanitarian concerns over the poor living conditions of the cocoa farmers that could cause negative publicity and affect sales and profits.
Key job titles in the industry
There are several relevant jobs in the industry of cocoa market:
- Food technology research scientists
- Market Research Managers
- Cocoa and chocolate ingredients merchants
- Marketing Managers
- Soft Commodity Risk Management
- Cocoa logistic services
- Cocoa shipping services
- Cocoa transportation services
Why businesses need Cocoa Market Research
The cocoa market is widespread. Whilst demand comes mainly from the rich western countries of northern Europe, the USA and Canada there are countries like Malaysia, Turkey and Indonesia that rank among the top importers of cocoa worldwide. On the other hand, the supply comes from countries like Ghana, Cote d’Ivoire, Indonesia and Ecuador. Such a spread of the supply and demand chain requires broad market research. Not only because of the spatial, cultural and language barriers but also because all relevant information shall be crystal clear. Such information includes:
- The definition of cocoa varieties
- The quantities of annual production
- The post-harvest protocols and handling of cocoa
- The requirements for valid and up-to-date certifications
Key success factors
Conducting extensive cocoa market research implies that all interested parties expect a high increase in return on investment. There are several principal factors of success:
- Maintaining high-quality standards
- Developing effective distribution channels
- Achieving economies of scale
- Expanding on foreign markets
- Increasing market share
- Exploiting the latest technological advances
- Setting a fair price
- Building customer loyalty
Accurate planning, realistic goal setting and broad knowledge of the cocoa market industry are additional factors that contribute significantly to success.
About Cocoa Market Research
Cocoa is a commodity that is traded on the following stock markets:
- The New York Mercantile Exchange (NYMEX)
- The Intercontinental Exchange (ICE) in London
Therefore, the prices and size of cocoa contracts are two critical factors for determining the stock indices and efficiency of the product. What distinguishes cocoa from other values that are traded in stock, is that it’s an agricultural product. Thus there is a specific analysis to conduct for making accurate predictions. Its efficiency and perspective rely mostly on human labor and the unstable conditions of its production process. The factor of the climate crisis is becoming extensively critical as there is much insecurity about future weather conditions. Within such an insecure environment, market research is becoming a highly important tool for determining the optimal business strategy. As the global market of cocoa is rapidly expanding, all involved parties shall prioritize the execution of meaningful, thorough and detailed market research.
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