Study of the Mexican Cocoa Market: An Analysis of Its Competitiveness (2010–2021)

Abstract

Cocoa is one of the main products consumed worldwide that is similar to coffee; a primary difference between coffee and cocoa is that cocoa is produced in developing countries and is consumed mainly in industrialized countries. Mexico was the country that made cocoa known to the world. The objective of the study was to analyze the competitiveness at the macroeconomic level of the Mexican cocoa product in the world during the period 2010–2021. A macroeconomic analysis was carried out using six indices: Balassa index, Vollrath Index, Additive Revealed Competitive Advantage Ratio, Trade Openness Index, Export and Import Index, and Self-Sufficiency Index. The industrialization of cocoa is the denaturation of the product, which is launched onto the market with little or no nutritional content, due to the alteration of the raw material with formulas based on vegetable fats, artificial colors, and flavors. For example, a commercial chocolate bar can have only 25–35% cocoa mass, semisweet chocolate bars can vary from 45 to 99% cocoa, while white chocolate bars only contain cocoa butter, milk, and sugar. These facts result in a decrease in the competitiveness of the product in the international market, in addition to the effects produced on its profitability for the producer—an increase in the cost of raw materials and a drop in real profits. These factors generate dependency on the international market for the production.