One ingredient, one mission: reinventing cocoa
Between 2023 and 2024, cocoa prices rose near 400% to $10,000 (ā¬9,311 a tonne). Those prices increased further in January 2025, reaching $10.75 per kilogram ā the highest price recorded in 60 years. In response, global chocolate giants, including Hershey, MondelÄz International, and Barry Callebaut, have revised their cocoa volume production predictions.
On 14 May, functional ingredient developer and flour milling specialist Ardent Mills launched its latest solution to the ongoing cocoa crisis, introducing a new powder alternative.
Focusing on plant-based production, Ardent Mills has addressed current concerns with its Cocoa Replace alternative. The wheat-based cocoa powder alternative is marketed as a clean-label option for manufacturers seeking to mitigate rising cocoa costs and supply chain volatility.
Single-ingredient cocoa productionFormulated with one ingredient, the wheat-based cocoa powder alternative can replace up to 25% of the cocoa in conventional cocoa-requiring goods.
Achieving cocoaās complex and rich flavour profile is a challenge. Cocoa alternative developers need to find suitable ingredients that replicate the familiar attributes of cocoa, including its taste and texture, that consumers desire.
Getting the same taste, consistency and mouthfeel is vital for any cocoa alternative. (Everyday better to do everything/Image: Getty Images)The developer sought to prioritise the industryās calls for a cocoa alternative that still mimics chocolateās characteristics. Reflecting the colour, texture and aroma of cocoa, while maintaining the product flavours and performance associated with its sensory properties, is vital.
āCocoa Replace is a targeted response to cocoa market volatility, but itās also part of a broader strategy,ā says Angie Goldberg, chief growth officer at Ardent Mills. Given the significant disruption and uncertainty cocoa has faced in recent years, brands like Ardent Mills are considering the future of cocoa production. āWeāre focused on helping our customers build resilience into their supply chains and formulation strategies ā supporting not just the challenges they face today, but the ones coming next,ā Goldberg adds.
Commodity issues accelerate with EUDR arrival Cocoa is one of the key commodities affected by the upcoming arrival of the European Unionās Deforestation Regulation (EUDR). Alongside soy, coffee, palm oil, beef, wood, and rubber, the new regulation has earmarked cocoa as a commodity at risk of deforestation.
As the EUDR affects all cocoa companies importing into the EU, manufacturers are exploring their practices and products ahead of its introduction date. Following a delay in its implementation, manufacturers have had an additional 12 months to update their practices, with some brands opting to explore the cocoa alternatives market.
Along with searching for alternatives, cocoa producers are diversifying their suppliers. The cocoa sector is turning to existing yet nascent geographical areas, such as Latin Americaās Ecuador, Brazil, and Peru, as well as Asiaās Indonesia.
There are environmental benefits to developing good quality cocoa alternatives. (fcafotodigital/Image: Getty Images)Latin America is the core favourite for producers looking to increase their supplier network. Responsible for 20% of the globeās cocoa productionāthe biggest after West Africaāthe regionās export value reached $3.48m (ā¬3.1m) in 2022, up almost 58% compared to a decade ago.
With environmental concerns such as crop-eroding diseases and the El NiƱo phenomenon affecting West Africa, crop-producing regions like Latin America and Indonesia are likely to gain popularity among manufacturers.
Sustainability drives innovationAt the World Cocoa Foundationās (WCF) 2025 Partnership Meeting in Brazil, cocoa leaders urged global collaboration is needed to tackle the issues and insecurity in the industry. Exploring the theme of Our Future: Resilience through Sustainability, attendees called for more inclusive strategies that put farmers at the centre of cocoa production.
Alongside regulatory requirements from the EUDR and cost concerns, the cocoa sector is also facing fallout from sustainability issues related to deforestation, environmentally harmful production methods, and unethical supply chain practices, such as forced labour.
Todayās cocoa industry is facing significant sustainability challenges, with recent insights indicating that consumer appreciation for practices such as regenerative agriculture is lacking. Crop supply firm Acclym found that while 68% understand the concept of regenerative agriculture, only 12% are willing to pay for goods made from cocoa using these practices.
