Future Growth Of Volatile Cocoa & Coffee Rests In Emerging Markets

December 08, 2014

 

 

One forecast, quoted in The Wall Street Journal in July this year, has the developing-market share accounting for some 45 percent of the global chocolate market, up from some 33 percent in 2004.

The great hope of the confectionery industry, however, remains India, where, at present, per capita chocolate consumption remains very low, but has the potential for huge expansion as people’s incomes increase. Indeed, sales in India are expected to increase nearly 14 percent in 2014.

 

Forecast Chocolate Sales Percentage Growth – by Volume

Source: The Wall Street Journal

 

Investing In Cocoa

The two most obvious investment options are exchange traded products (ETPs) and futures.

ETPs

Two specific cocoa ETPs (in the form of ETNs—so there will, for each, be a credit risk related to the issuing institution) available in the U.S. are:

  • iPath Dow Jones-AIG Cocoa Total Return Sub-Index ETN (NIB)
  • iPath Pure Beta Cocoa (CHOC)

 

And ETF Securities in the UK has the ETFS Cocoa ETF, ETFS Daily Short Cocoa and ETFS Daily Leveraged Cocoa.

 

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