HS Code:
The category under HS subheadings 1806.20.77, 2101.12.58, and 2101.20.58 primarily includes chocolate and other food preparations containing cocoa, as well as extracts, essences, and concentrates of coffee and tea, and preparations with a basis of these products. Specifically, 1806.20.77 refers to chocolate preparations in blocks, slabs, or bars weighing more than 2 kg, containing less than 18% by weight of cocoa butter. Subheadings 2101.12.58 and 2101.20.58 cover preparations based on coffee and tea extracts, respectively, often used in instant beverages or food manufacturing. These products are widely traded globally due to their use in the food and beverage industry, including retail and industrial applications.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Statistics
$1.1 billion USD
21.2% of total trade of total trade
Increasing
$850 million USD
16.3% of total trade of total trade
Stable
$620 million USD
11.9% of total trade of total trade
Increasing
$500 million USD
9.6% of total trade of total trade
Stable
$380 million USD
7.3% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
15% (applied by certain developing countries for protecting local industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA or within customs unions like the EU)
Rising demand for premium and organic chocolate products
Increased exports from countries with established premium brands like Switzerland and Belgium, driving higher value per unit
2021-2022
Growth in instant coffee and tea concentrate markets in Asia-Pacific
Significant rise in trade volume from producing countries like Brazil and Vietnam to meet demand in emerging markets
2020-2022
Sustainability and fair trade certifications gaining importance
Exporters adopting sustainable practices to meet consumer and regulatory demands, influencing sourcing patterns
2019-2022
The European Union introduced new regulations under the EU Deforestation Regulation (EUDR) requiring traceability of cocoa products to prevent deforestation-linked imports, impacting chocolate preparations under HS 1806.20.77.
June 2023
Increased compliance costs for exporters from cocoa-producing countries, potential delays in trade to EU markets, and a shift towards certified sustainable sourcing.
Under the USMCA agreement, tariffs on coffee extracts and preparations (HS 2101.12.58) were reduced to 0% for trade between the US, Mexico, and Canada, boosting regional trade.
January 2023
Enhanced market access for North American producers, with a projected 10% increase in trade volume within the region over the next two years.
Rapid urbanization and changing consumer preferences in countries like China and India have driven demand for instant tea preparations (HS 2101.20.58), leading to increased imports from major producers.
March 2023
Significant growth opportunities for exporters like Sri Lanka and Kenya, with trade volumes expected to rise by 8-12% annually in the region.