The global cocoa nibs market is highly competitive with key industry players focusing on various strategies such as product launches, partnerships, and expansions to strengthen their market positions. Most companies in the market are focused on expanding operations across regions, augmenting their capabilities, and building strong partner relations. The growth of the market players is dependent on market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving product quality. Barry Callebaut AG, Cocoa Family Farms, Santa Barbara Chocolate, NOW Health Group Inc., Fine Cocoa Products Corporation, Sunfood Corporation, Viva Naturals, Navitas LLC, Nutrisure Ltd, and United Cocoa Processor, Inc. are the major companies in this market, who compete based on market presence, quality, and price.
The key players are taking steps toward business expansions and market development, thereby expanding their customer base. The international players may strengthen their presence worldwide through acquisitions during the review period. It has also been forecast that improvements in the global economic scenario and the growing confectionery industry in emerging nations would drive market growth, making it an ideal time for players to launch new products and increase their global market shares.
THREAT OF NEW ENTRANTS
The global cocoa nibs market is expected to be lucrative owing to the rising demand for cocoa nibs in households. The manufacturing of cocoa nibs is mainly adopted as a secondary function by most of the prominent market players in the chocolate industry. The manufacturing of cocoa nibs does not require high investments as the equipment used is not very costly. Thus, new players do not hesitate to diversify their businesses to include cocoa nibs. However, the growing demand for cocoa nib substitutes and the implementation of stringent regulations across the globe are limiting the number of new entrants in the market.
Hence, the threat of new entrants in the global cocoa nibs market is expected to be moderate.
BARGAINING POWER OF SUPPLIERS
The major raw material for cocoa nibs is cocoa beans. Suppliers of cocoa beans have leverage due to the fluctuating raw material prices and gap in the supply and demand for cocoa beans. Additionally, region-specific cultivation of cocoa compels cocoa nibs manufacturers to rely on the import of cocoa beans, resulting in increased raw material prices. Market players enter into partnerships with farmers supplying cocoa in order to ensure a continuous supply; however, this has minimal impact on the bargaining power.
Hence, the bargaining power of suppliers in the global cocoa nibs market is expected to be high.
BARGAINING POWER OF BUYERS
The buyers are the major governing factor controlling the market. It is a perfect competition market with the presence of numerous market players and a large customer base. The switching costs for the buyers is very low in the market due to the availability of various substitutes. There is limited product differentiation in the global cocoa nibs market, enabling customers to switch from one brand to another, thus, lowering brand loyalty as well.
Hence, the bargaining power of buyers in the global cocoa nibs market is expected to be high.
THREAT OF SUBSTITUTES
There are several substitutes of cocoa nibs available in the global market such as chocolate liqueur, unsweetened baker’s chocolate, chocolate powder, and chocolate chips. Depending on the use and availability, consumers can substitute cocoa nibs with any of these products. Additionally, the high availability of these substitutes in the global market reduces the switching cost for consumers, thus, threatening the sale of cocoa nibs.
Hence, the threat of substitutes in the global cocoa nibs market is expected to be high.
INTENSITY OF RIVALRY
The global cocoa nibs market is marked by a high intensity of rivalry due to the presence of numerous local and global players. The established players in the market are targeting competitors in terms of quality, product packaging, and price, thus making the industry competitive. There is a high level of competition among market players as no single player is completely focused on cocoa nibs. Market players are focusing on strategic expansions to enter new markets and increase their customer base.
Hence, the intensity of rivalry in the global cocoa nibs market is expected to be high.
