Both the world cocoa market and the world chocolate market are expected to grow in the next five years.

That’s according to a new report from MarketsandMarkets, Cocoa & Chocolate Market - Global Trends & Forecasts to 2019. For cocoa, specifically, the market size (volume) of cocoa was 3,455,622 metric tons in 2013 and is estimated to grow at a compounded annual growth rate (CAGR) of 3.1 percent from 2014 to 2019. As for the chocolate market, it’s projected to grow at a CAGR of 2.3 percent from 2014 to 2019.

So, by 2019, the world cocoa market is expected be worth about $2.1 billion, and the world chocolate market is expected to be worth about $131.7 billion.

Product innovations are likely to play a key role in increasing the share of the market players, the report says.

The milk and white chocolate segment is estimated to grow at the highest CAGR of 2.4 percent from 2014 to 2019.The cocoa liquor segment dominates the cocoa market in 2013, while cocoa butter segment is expected to grow at a CAGR of 3.8 percent from 2014 to 2019.

Cocoa & Chocolate Market Size(Volume), by Type, 2013

Some of the key players include Cargill (U.S.), Archer Daniels Midland (U.S.), and Barry Callebaut (Switzerland). Moreover, the top five players accounted for the maximum market share in the industry, by market value. The products these companies make are used by food manufacturers.

As for which continents are selling the most chocolate and cocoa, Europe is projected to lead the global market with the highest share in 2014, followed by North America and the Asia-Pacific, in terms of volume.

Europe dominates the cocoa & chocolate market, owing mainly to the largest cocoa processing capacity of the region.

And, Europe is a major processor of cocoa in the global market and is estimated to grow at a CAGR of 2.6 percent from 2014 to 2019. However, the overall cocoa & chocolate industry in the European region has become saturated over the last few years. Consumer awareness pertaining to health benefits has led some of the major innovations in the North American cocoa and chocolate industry.

Moreover, increasing population and disposable income has helped in increasing the penetration of the market in Asia-Pacific. The North American cocoa market is also growing rapidly due to the huge demand for cocoa & chocolate-based products.

The cocoa and chocolate industry has gained a significant position in the food industry by providing taste, color, and texture with several functional benefits. The products are mostly preferred during festive season such as Valentine’s Day, Christmas, and New Year.

Cocoa Market Share, by Application, 2013

The huge demand for cocoa and chocolate in confectionery and food and beverage industries drives the market. But, the promising health benefits of cocoa and chocolate in pharmaceuticals and cosmetics provides enough evidence to encourage manufacturers to consider using such ingredients.

The Cocoa & Chocolate Market report also covers various other important aspects of the market. It includes an analysis of the competitive landscape, and 11 key players of the market have also been profiled.

The 282-page report also identifies the driving and restraining factors for the global market with an analysis of trends, opportunities, winning imperatives, and challenges.

MarketsandMarkets is a global market research and consulting company based in the United States. It publishes strategically analyzed market research reports and serves as a business intelligence partner to Fortune 500 companies across the world.