Cocoa Butter Substitutes (CBS) Market Size, Share, Growth, and Industry Analysis, By Type (Direct Sales, Indirect Sales), By Application (Food, Candy), Regional Insights and Forecast to 2033

SKU ID : 14716562

No. of pages : 110

Last Updated : 07 July 2025

Base Year : 2024

Cocoa Butter Substitutes (CBS) Market Overview

Global Cocoa Butter Substitutes (CBS) market size, valued at USD 503.16 million in 2024, is expected to climb to USD 691.71 million by 2033 at a CAGR of 3.6%.

The Cocoa Butter Substitutes (CBS) market plays a significant role in the global confectionery and food processing sectors, offering cost-effective alternatives to traditional cocoa butter. These substitutes are widely used due to their ability to enhance shelf life, reduce production costs, and provide consistent performance in product formulations. Over 65% of the demand for CBS is driven by chocolate manufacturing alone, with countries like Indonesia, Malaysia, and Ghana leading in palm oil-based raw material production, essential for CBS manufacturing.

In terms of industrial usage, over 420,000 metric tons of CBS were consumed globally in chocolate and coating applications in 2023. The rise in raw cocoa butter prices has pushed approximately 70% of medium-sized food processors in Asia-Pacific to partially or fully transition to CBS-based formulations. Additionally, CBS is gaining traction in temperature-sensitive supply chains; its higher melting point (around 36°C to 39°C) compared to cocoa butter reduces storage losses, especially in tropical climates. Demand in developing countries has risen by over 12% year-on-year due to the growing middle-class population seeking affordable chocolate alternatives. The use of CBS also improves processing speed, reducing cooling times by nearly 20% during chocolate production.

Key Findings

Top Driver reason: Rising cost of cocoa butter pushing manufacturers toward cost-effective alternatives.

Top Country/Region: Asia-Pacific leads due to abundant palm kernel oil production and high confectionery consumption.

Top Segment: Food applications dominate the CBS market, accounting for over 75% of total demand in 2023.

Cocoa Butter Substitutes (CBS) Market Trends

The global CBS market has seen a significant uptrend driven by changing consumer preferences and evolving industrial demands. As of 2023, over 48% of all chocolate manufacturers globally have partially or entirely incorporated CBS into their production lines. This trend is particularly strong in Southeast Asia, where over 110 major processing plants now rely on CBS ingredients.

Another significant trend is the shift toward sustainable sourcing. Over 60% of CBS manufacturers have adopted sustainability certification schemes, particularly for palm oil, to meet growing consumer and regulatory demand for ethical products. The increase in sustainable CBS variants has risen by 18% from 2022 to 2023.

Cocoa Butter Substitutes (CBS) Market Dynamics

DRIVER

Rising demand from the food and confectionery sectors.

Cocoa Butter Substitutes are increasingly in demand due to the exponential growth in the global processed food and confectionery industry. In 2023, over 520,000 metric tons of CBS were used in processed foods globally, representing a 14% increase from 2022. The lower cost, superior melting behavior, and ease of integration into manufacturing lines make CBS particularly attractive for mass-market chocolate producers. Additionally, CBS allows production in warmer climates without refrigerated supply chains, saving over 25% in cold logistics for some manufacturers. The demand is further pushed by an expanding global middle class, particularly in Asia and Africa, where cost-efficient chocolate substitutes using CBS are growing in popularity.

RESTRAINT

Regulatory constraints around palm oil and hydrogenated fats.

Despite its advantages, the CBS market is hindered by tightening regulations around palm oil, one of its primary raw materials. In 2023, more than 22 countries introduced new labelling or environmental regulations related to palm-based ingredients. Moreover, CBS formulations containing hydrogenated fats face restrictions in North America and Europe due to health concerns. Over 190 food manufacturers in the EU reformulated or removed CBS-based products in 2023 to comply with these changing health guidelines. The increasing consumer awareness about trans fats and saturated fats has created a negative perception in some mature markets, requiring additional reformulation and investment.

OPPORTUNITY

Expansion into emerging markets with cost-effective chocolate alternatives.

The biggest opportunity for the CBS market lies in emerging economies where chocolate demand is rising, but purchasing power remains limited. Countries like India, Vietnam, Nigeria, and Brazil are witnessing a surge in demand for affordable chocolate products, with over 65% of chocolate sold containing CBS in some regions. In 2023 alone, India saw a 22% increase in CBS imports to meet the growing domestic demand. Manufacturers are also capitalizing on regional flavor preferences, using CBS in spiced and fruit-infused coatings to penetrate niche consumer segments. CBS enables manufacturers to offer products at 20%-30% lower price points, opening new customer bases.

CHALLENGE

Volatile raw material prices and quality variation.

The CBS market faces significant challenges from fluctuating prices of palm kernel oil, shea butter, and other base ingredients. In 2023, palm oil prices varied by over 15% month-to-month due to geopolitical instability and weather-induced supply issues in Indonesia and Malaysia. These fluctuations impact profit margins, especially for small and mid-size CBS producers. Additionally, quality consistency remains a problem, with over 10% of manufacturers reporting variations in melting behavior and flavor profiles across CBS batches. This variability affects end-product stability and consumer satisfaction, demanding better supply chain standardization and sourcing practices.

Cocoa Butter Substitutes (CBS) Market Segmentation

The Cocoa Butter Substitutes market is segmented by type and application, reflecting its widespread usage across multiple industries. As of 2023, over 70% of CBS use is concentrated in direct food applications, while 30% is distributed through industrial supply chains and intermediate processors.

By Type

  • Direct Sales: Direct sales of CBS accounted for approximately 63% of market volume in 2023. These are mainly distributed to chocolate and confectionery manufacturers through specialized distribution networks. Over 180 key food companies globally now rely on direct CBS suppliers, particularly in Asia-Pacific. Direct sales ensure better quality assurance and consistent product delivery, crucial for major players who need standardization across multiple production sites.
  • Indirect Sales: Indirect sales through distributors, agents, or third-party retailers made up about 37% of CBS volume in 2023. Indirect sales are more prominent in regions with fragmented markets, such as parts of Africa and Latin America, where over 60% of CBS enters through intermediaries. This model supports smaller-scale food producers who lack the infrastructure for bulk procurement but contribute significantly to regional consumption.

By Application

  • Food: Food applications dominate CBS usage, accounting for over 78% of market volume in 2023. These include use in bakery coatings, chocolate spreads, non-dairy creamers, and ready-to-eat desserts. For instance, in China alone, over 95,000 metric tons of CBS were used in bakery and chocolate applications in 2023. CBS’s resistance to blooming and longer shelf life make it especially attractive for packaged food manufacturers.
  • Candy: Candy manufacturing accounts for around 22% of CBS consumption. CBS is used extensively in hard-coated candies, enrobed bars, and molded chocolate products. In 2023, over 145 major candy brands worldwide used CBS in their product formulations. It helps maintain glossiness, snap, and texture even in fluctuating temperatures, particularly in export markets.

Cocoa Butter Substitutes (CBS) Market Regional Outlook

The Cocoa Butter Substitutes market demonstrates varied performance across regions due to differences in climate, raw material availability, and consumer habits. Each region’s performance is closely linked to its chocolate production scale, cost optimization needs, and regulatory environments.

  • North America

In 2023, North America accounted for approximately 21% of the global CBS consumption. The United States alone used over 88,000 metric tons of CBS in food and confectionery applications. Major chocolate manufacturers have shifted toward CBS to counter rising cocoa butter prices and meet consumer demand for affordable treats. However, regulatory scrutiny around hydrogenated oils has prompted more manufacturers to transition toward non-hydrogenated and sustainable CBS variants. Canada has also seen a 9% increase in CBS imports, especially for use in mass-market chocolate products. Innovations in vegan and allergen-free chocolates are fueling CBS usage across major metro areas.

  • Europe

Europe remains a mature yet highly regulated CBS market. Over 115,000 metric tons of CBS were consumed across EU nations in 2023, with Germany, France, and the UK being top contributors. Approximately 72% of CBS used in Europe complies with RSPO or equivalent sustainability certifications. EU legislation around trans fats and palm oil labeling has spurred reformulation trends. European manufacturers are leveraging CBS to innovate premium chocolate alternatives and shelf-stable products suited for export. The region is also a hotspot for CBS in lactose-free and vegan chocolate applications, with over 60% of new vegan chocolate product launches in Western Europe in 2023 utilizing CBS.

  • Asia-Pacific

Asia-Pacific dominated the CBS market in 2023, with over 290,000 metric tons consumed across industrial and consumer applications. Countries like Indonesia, Malaysia, India, and China are both major producers and consumers. India saw a 24% year-over-year increase in CBS imports, while China’s domestic production rose by 13%. Southeast Asia houses over 40 large-scale CBS manufacturing plants, and Malaysia alone produces over 180,000 metric tons of palm-based fats annually. Local demand is being driven by expanding middle-class populations and the rising popularity of affordable chocolate products. Export-oriented manufacturers in the region benefit from low input costs and proximity to raw material sources.

  • Middle East & Africa

The Middle East & Africa market is emerging, with over 45,000 metric tons of CBS consumed in 2023. Nigeria and Egypt are among the leading consumers, driven by increasing urbanization and rising confectionery consumption. South Africa saw a 17% increase in CBS usage in retail chocolate products between 2022 and 2023. High import dependency and limited local CBS manufacturing remain challenges, though investment in palm processing infrastructure is expected to improve regional supply. The region is also witnessing growing interest from multinational chocolate companies setting up facilities that use CBS to reduce production costs in hot climates.

List of Top Cocoa Butter Substitutes (CBS) Market Companies

  • AAK AB
  • Bunge Loders Croklaan
  • Wilmar International
  • Fuji Oil
  • Cargill
  • Premium Vegetable Oils Sdn Bhd
  • FGV IFFCO Sdn Bhd
  • Nisshin Oillio
  • Musim Mas
  • Olam International
  • Mewah Group

Top Two Companies with the Highest Share

Wilmar: International holds the highest global share in the CBS market. In 2023, it produced over 150,000 metric tons of CBS ingredients, operating across 17 countries with vertically integrated palm oil operations that ensure cost efficiency and supply consistency.

Bunge Loders Croklaan: ranks second, with CBS production exceeding 130,000 metric tons in 2023. The company operates advanced CBS manufacturing plants in Europe and Asia and supplies more than 600 clients across 50 countries. It leads in non-hydrogenated CBS solutions.

Investment Analysis and Opportunities

The Cocoa Butter Substitutes market is witnessing a steady influx of investment capital driven by evolving demand in the food and confectionery sector. Between 2022 and 2024, over $280 million worth of infrastructure development and expansion projects were initiated globally for CBS processing facilities. In Asia-Pacific alone, over 15 new manufacturing lines dedicated to CBS production became operational in 2023, increasing capacity by over 120,000 metric tons annually.

Strategic investments are also being directed toward product innovation. More than 75 R&D centers globally focused on CBS reformulation in 2023 to meet consumer preferences for non-hydrogenated and organic ingredients. Over 40% of these facilities are located in Europe, focusing on sustainable sourcing and allergen-free variants.

Additionally, major confectionery players are forming long-term supply partnerships with CBS producers. For instance, in 2023, a top European chocolate brand signed a five-year CBS supply agreement with a Malaysian manufacturer valued at $40 million. Similar deals are being observed in North America and Africa, especially to support regional production and reduce dependency on imported cocoa butter.

Private equity firms are also recognizing CBS as a high-growth sector. In 2023, three major investment firms acquired stakes in CBS manufacturing companies operating in India and Indonesia, with projected output increases of over 60% in two years. Venture capital is being directed toward plant-based fat startups focusing on high-performance CBS alternatives.

New Product Development

New product development in the CBS market is being driven by technological advances, sustainability demands, and evolving consumer preferences. In 2023, over 180 new CBS-based products were introduced globally across multiple applications, including chocolates, fillings, coatings, and non-dairy spreads.

In the chocolate segment, manufacturers are using CBS to introduce heat-resistant formulations. A notable launch in 2023 was a molded chocolate bar that could withstand 38°C temperatures without melting, targeting the African and Southeast Asian export markets. Sales volume for this variant reached over 2 million units in the first six months alone.

Plant-based trends are also driving new CBS applications. Vegan chocolate launches incorporating shea-based CBS increased by 26% in Europe during 2023. New formulations free from hydrogenated oils and palm derivatives have also emerged, with at least 15 brands across North America and Europe marketing CBS chocolates with “clean-label” positioning.

Textural innovations are another focus. CBS blends with altered crystallization profiles are being used to produce glossy, quick-setting coatings. These are particularly effective in high-speed enrobing lines where cooling times need to be minimized. In 2023, such CBS blends were adopted in 35 new confectionery plants across Asia.

Premium markets are seeing increased CBS usage in filled chocolates and nut spreads. High-performance CBS variants that mimic cocoa butter’s smooth mouthfeel are gaining traction in the $1–$3 per unit price range, particularly in supermarkets in urban Asia and Eastern Europe. CBS is also being used in artisan chocolate brands to maintain price competitiveness without sacrificing quality.

Five Recent Developments

  • Wilmar: International commissioned a new CBS processing unit in Indonesia with a production capacity of 45,000 metric tons annually in 2023 to meet rising Asian demand.
  • Bunge Loders Croklaan: launched a next-generation non-hydrogenated CBS blend in March 2024 that achieved 12% faster crystallization rates than previous models.
  • Fuji Oil: introduced a palm-free CBS formulation in Q4 2023 targeting premium European markets, resulting in trial runs with five major confectionery brands.
  • AAK AB: invested in a sustainable palm kernel sourcing initiative in Ghana in 2023, expected to supply 25,000 metric tons of raw material annually for CBS production.
  • Cargill: partnered with an Indian chocolate company in early 2024 to locally produce CBS-based chocolate coatings, targeting a volume of 18,000 metric tons within the first year.

Report Coverage of Cocoa Butter Substitutes (CBS) Market

This report offers comprehensive coverage of the Cocoa Butter Substitutes market across diverse dimensions, including product types, end-use sectors, regional demand, and competitive landscape. The scope of the report includes detailed segmentation by application (food, candy) and by type (direct and indirect sales), supported with figures on usage volumes, adoption rates, and processing capacities.

The report analyzes over 150 CBS manufacturers and includes benchmarking data across parameters such as product quality, melting point, fat composition, and logistics advantages. Additionally, the coverage includes 12 major countries responsible for over 85% of global CBS production and consumption. The study incorporates supply chain mapping, including raw material sourcing zones in Indonesia, Malaysia, and West Africa.

Investment flows and infrastructure development are tracked for the 2020–2024 period, showcasing over 60 major projects in CBS production plants globally. Key strategic partnerships, joint ventures, and acquisitions are examined to illustrate the evolving competitive environment.

 


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