Davao City, the country’s biggest metropolis in terms of land area, is known for its agricultural products like durian, pomelo, mangosteen, and mango. But lately, it has added cacao to its growing list.
Cacao, which originated from the upper Amazon basin of South America, is the precursor of the world’s most favorite chocolate, a delectable food item crafted from roasted and ground cocoa beans, appreciated in multiple forms including bars, beverages, and confections.
Chocolate is savored by billions globally, with estimates indicating that approximately one billion people indulge in chocolate each day. Its appeal transcends continents, from Europe and North America to Asia, where chocolate is progressively welcomed as incomes increase and Western influences proliferate.
In the Philippines, the chocolate market reached $751.50 million in 2025, according to IMARC Group, a prominent market research firm committed to delivering data-driven insights and expert consulting services. Looking ahead, IMARC Group anticipates that the market will grow to $1,198.71 million by 2034.
Brussels, located in Belgium, is renowned as the chocolate capital of the world, attributed to its extensive history, skilled craftsmanship, and significant impact on global chocolate production.
In the Philippines, this title is given to Davao City. The formal acknowledgment was established by Republic Act No. 11547, enacted in 2021, which designated the city as the Chocolate Capital of the Philippines.
Davao City has been awarded the moniker because of its significant contribution to cacao production, accounting for more than 70% of the country’s cacao yield, aided by its rich volcanic soil, tropical climate, and the efforts of generations of committed farmers.
The entire Davao region, which encompasses Davao del Norte, Davao del Sur, Davao Oriental, Davao de Oro, and Davao Occidental, has also been recognized as the Cacao Capital of the Philippines, as it has reliably produced premium cacao beans that are in demand both domestically and globally, according to the Department of Agriculture.
The Food and Agriculture Organization (FAO) indicates that the cultivation of cacao necessitates a stable tropical climate characterized by warm temperatures, high humidity, sufficient rainfall, partial shade, and fertile, slightly acidic soil. These conditions are typically found in equatorial regions globally.
Fortunately, the Davao region is situated within the so-called “chocolate belt,” which is the area surrounding the equator, specifically between 20 degrees north and south latitude, where cacao plants flourish.
Cacao farms in the Davao region span nearly 20,000 hectares, accounting for 60% of the national area dedicated to cacao harvesting, according to a report from the Philippine News Agency.
The quality of cacao produced in Davao is attributed to its favorable climate, fertile volcanic soil, and well-distributed rainfall, which together create optimal conditions for cacao trees. The tropical environment of the region offers the necessary balance of humidity and warmth, which are vital for the growth of healthy cacao pods and the production of fine-flavored beans.
The production of high-quality cacao in Davao involves the hand-harvesting of cacao pods, meticulous extraction of beans, and fermentation over several days, a process that is essential for developing flavor. Many farms prioritize sustainable farming practices and supply high-quality seedlings to assist smallholder farmers.
Notable cacao producers in Davao City consist of Malagos Chocolate, renowned globally for its award-winning tree-to-bar chocolate; Cacao de Davao, which aids local farmers and honors Davao’s rich cacao heritage; Cacao Culture, which emphasizes sustainable farming and processing; and Auro Chocolate, which partners with farmers to cultivate high-quality cacao for export.
Davao’s unique blend of advantageous natural conditions, proficient farmers, and well-structured production systems guarantees that its cacao ranks among the best globally, bolstering both the local economy and the international chocolate market.
However, despite its achievements, Davao’s cacao industry encounters obstacles including restricted access to quality inputs, insufficient bean supply, labor shortages, deficiencies in farm management, and challenges related to postharvest capacity.
Insiders believe that tackling the above issues is crucial for sustaining high-quality production and enhancing global competitiveness.
The Philippine Statistics Authority (PSA) reported that cacao production in the country has experienced notable growth, achieving a production volume of 2.35 thousand metric tons during the first half of 2023. This increase was primarily driven by the Davao Region, which contributed 71.2% of the total production.
In 2023, the total cacao production amounted to 10,759.12 metric tons, reflecting a slight increase compared to the previous year. The industry is dedicated to enhancing yields and promoting sustainability, supported by government initiatives and training programs designed to improve agricultural practices.
In 2024, the agriculture department set a goal to enhance the production of local cacao plantations in response to the growing global demand for this crop. The objective was to elevate the yield of each cacao tree from the current 0.5 kilogram to one kilogram.
In addition to Davao, cacao is primarily cultivated in Batangas, Cebu, Bohol, and South Cotabato.
Batangas is known for its traditional chocolate products, especially tsokolate tablea, which are chocolate tablets utilized for preparing hot chocolate. Although it accounts for a smaller share of national production, it is esteemed for its quality.
Cebu is the home of the Criollo variety, celebrated for its exceptional quality and rich flavor. While it represents approximately 1% of the national cacao output, it is increasingly recognized for its high-quality cacao production.
Bohol is also acknowledged for its cacao cultivation, contributing to the expanding industry in the Philippines. The province is actively working on improving its cacao farming techniques to enhance production.
Like Davao, South Cotabato is situated in the Mindanao region, which is becoming progressively significant for cacao farming. The province is engaged in various initiatives aimed at increasing cacao production and enhancing quality.
Cacao is highly sought after on an international scale due to its seeds, known as cocoa beans, which are derived from cacao pods. These beans undergo a process of fermentation, drying, and roasting to enhance their flavor.
The estimated size of the global cocoa beans market was $15.40 billion in 2024, with projections indicating it will reach $23.68 billion by 2033. This growth represents a compound annual growth rate (CAGR) of 4.8% from 2025 to 2033, according to Grand View Research, a prominent authority in market analysis and statistics.
CAGR is a metric that quantifies the average annual growth of an investment or financial indicator over a defined timeframe.
In 2024, the North American cocoa beans market led the global market, capturing the largest revenue share of 29.2%. Meanwhile, the cocoa beans market in the Asia and Pacific region is expected to have the highest CAGR during the forecast period. (To be continued)
