HS Code:
The category under HS subheadings 1806.20.26, 1806.20.36, 1806.32.06, and 1806.32.16 pertains to chocolate and other food preparations containing cocoa. Specifically, these subheadings cover chocolate in blocks, slabs, or bars, whether or not filled, and other preparations in bulk or specific weight categories. This includes products like chocolate bars with nuts or fruits (1806.32.06 and 1806.32.16) and bulk chocolate preparations used for manufacturing or further processing (1806.20.26 and 1806.20.36). These products are widely consumed globally and are a significant part of the confectionery industry, with trade influenced by consumer preferences, seasonal demand, and raw material (cocoa) availability.
Total Trade Volume
Approximately $25 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) statistics
$4.5 billion USD
18% of total trade of total trade
Increasing
$3.2 billion USD
12.8% of total trade of total trade
Stable
$2.8 billion USD
11.2% of total trade of total trade
Increasing
$2.1 billion USD
8.4% of total trade of total trade
Stable
$1.9 billion USD
7.6% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
30% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU internal trade or USMCA)
Rising demand for premium and artisanal chocolate
Increased trade in high-value products, benefiting exporters like Switzerland and Belgium with established premium brands
2021-2023
Growth in demand for sustainable and ethically sourced cocoa
Shift towards fair-trade certified products, impacting sourcing patterns and increasing costs for non-compliant producers
2020-2023
Seasonal demand spikes during holidays
Significant trade volume increases in Q4 globally, particularly for chocolate bars and gift packs in Western markets
Annual recurring trend
The EU introduced regulations requiring proof that imported cocoa products are not linked to deforestation, affecting chocolate manufacturers and exporters from cocoa-producing regions.
December 2022
Increased compliance costs for exporters; potential trade diversion to non-EU markets for non-compliant producers
Recent updates to the USMCA agreement have reduced tariffs on chocolate imports from Canada and Mexico, boosting North American trade in this category.
July 2023
Enhanced market access for Canadian and Mexican exporters; increased competition for US domestic producers
Adverse weather conditions in West Africa, the largest cocoa-producing region, have led to supply shortages and price spikes, impacting bulk chocolate preparation exports.
Mid-2023
Higher production costs for chocolate manufacturers; potential reduction in trade volume if prices deter demand