HS Code:
Cocoa paste, whether or not defatted (HS Code: 1803), is a semi-processed product derived from cocoa beans. It is primarily used as an intermediate product in the manufacture of chocolate, cocoa powder, and other confectionery items. Cocoa paste can be either non-defatted (containing cocoa butter) or defatted (with reduced fat content), and it plays a critical role in the global cocoa supply chain. This category does not include finished chocolate products but focuses on the raw or semi-processed form of cocoa used by manufacturers worldwide.
Total Trade Volume
1.2 million metric tons valued at approximately $3.5 billion USD
Data from 2022
Source
International Trade Centre (ITC) Trade Map, UN Comtrade Database
$850 million USD
24.3% of global trade of total trade
Increasing
$600 million USD
17.1% of global trade of total trade
Increasing
$450 million USD
12.9% of global trade of total trade
Stable
$380 million USD
10.9% of global trade of total trade
Increasing
$300 million USD
8.6% of global trade of total trade
Stable
Average Rate
6.5% ad valorem
Highest Rate
15% (applied by certain developing countries to protect local processing industries)
Lowest Rate
0% (under free trade agreements like EU-ACP or within regional blocs like ECOWAS)
Rising demand for sustainable and ethically sourced cocoa
Increased certification costs for producers but higher premiums for compliant products; growing market access in Europe and North America
2020-2022
Shift towards defatted cocoa paste for low-fat products
Growing demand in health-conscious markets, particularly for cocoa powder used in diet-friendly foods
2021-2023
Price volatility due to climate change impacts on cocoa production
Fluctuating supply from West Africa leading to price instability, affecting long-term contracts and profitability
2019-2022
The European Union introduced regulations requiring proof that cocoa imports are not linked to deforestation, effective from late 2024. This affects major exporters like Cรดte d'Ivoire and Ghana.
June 2023
Potential delays in exports and increased compliance costs for producers; long-term push towards sustainable farming practices
Cรดte d'Ivoire and Ghana implemented the LID policy, adding a $400 per ton premium on cocoa exports to ensure fairer prices for farmers.
October 2020 (ongoing)
Increased production costs for buyers but improved livelihoods for farmers; mixed reception from chocolate manufacturers
Countries like Ghana and Cรดte d'Ivoire are investing in domestic cocoa processing facilities to export more value-added products like cocoa paste instead of raw beans.
2021-2023
Potential reduction in raw bean exports and increase in cocoa paste trade volume from these countries; shift in global supply chain dynamics