To bean or not to bean?

What cocoa futures have been trading at:

Jan 2023: US$2,569 per tonne

Jan 2024: US$5,009 per tonne

Jan 2025: US$10,987 per tonne

Are you seeing the pattern here? The world’s most beloved and indulgent ingredient has become one of the most volatile – and this started well before I was forced to Google “tariff”. A combination of bad weather, bad disease, and bad luck has nobbled the cocoa supply from West Africa (where the bulk of our cocoa is from). 

Chocolate majors are understandably unnerved by the situation. Many are exploring other ways to manage this supply crisis, including reducing pack sizes, reducing cocoa content, and reformulating with other ingredients, among various other strategies. Prices will in all likelihood go up. In fact, some of the biggest chocolate manufacturers anticipate that chocolate will be 40-50% more costly than it used to be, and that consumers will just have to lump it (my words, not theirs). 

Chocolate makers aren’t the only folks tense about the situation. The cocoa crisis is rattling anyone who uses chocolate: bakers, dairy brands, snack makers, functional food players, you name it. And chocolate is everywhere – it is one of the world’s most popular flavors, after all.

If your product even whispers “chocolate,” your margins are now under pressure. And that’s forcing manufacturers across the food industry to ask the unthinkable: can we make chocolatey things... with less cocoa?

Yes, we can. And a few already are.

The great rethink: Making cocoa go further

With these supply and cost issues, solutions are emerging that are helping companies maintain the indulgent chocolate experience, while significantly reducing their reliance on cocoa. I mean, why eliminate cocoa entirely when you can just make less go further?

What’s really interesting about these solutions is that they address very specific issues about not only flavor, but also color and mouthfeel – specifically in categories that use chocolate as an ingredient.

Let’s dive in…

MALTED BARLEY

MaltRite Cocoa, from Malt Products Corp, is an extract from whole grain malted barley powder that can replace a portion of cocoa powder. It can be used in baked goods to mimic or complement cocoa in terms of appearance, flavor, and aroma. It also increases moisture retention, which extends shelf life.  

In dense products like brownies or cookies, this barley extract can replace up to 50% of cocoa powder without compromising quality. And because it integrates easily into existing recipes, it doesn’t throw off processing times or texture. That means bakers get to cut costs without a major R&D overhaul.

POMEGRANATE

Pom Wonderful Specialty Ingredients offers a liquid pomegranate extract – POMxL – that can also be used to reduce cocoa use levels in applications such as baked goods, chocolate sauce, ice cream, and chocolate milk.

The company says that pomegranate’s flavor profile and polyphenols complement cocoa. Cocoa powder is savory and astringent, and reducing the amount of cocoa used, its umami and acidic flavors are also reduced. POMxL is savory, umami-like, and acidic, which can boost the cocoa flavor and texture to mimic products with a higher cocoa content.

Cocoa also adds color and texture to products. The pomegranate extract has a natural light brown hue that helps products retain color when cocoa content is reduced. 

COCOA FAT

Sometimes the secret to better chocolate flavor isn't adding more cocoa powder – it’s fixing the fat. Butter Buds' Cocoa Butter Buds is an ingredient made from cocoa fat that could be a cost-effective alternative to cocoa powder.  

The company uses its enzyme modification technology and cocoa fats from the cocoa bean to create a concentrated ingredient solution that can improve chocolate flavor at a fraction of the cost of chocolate. Butter Buds says that at a 0.5% usage rate, their ingredient contributes less than 0.07% fat to the final formulation, without losing the flavor or mouthfeel associated with real chocolate. It’s water-soluble, kosher, and halal certified.

NATURAL FLAVORS

French company Prova Gourmet offers natural cocoa flavoring that helps brands bring down the amount of cocoa products they use. This replacement product was created by reducing cocoa powder content by 30% and adding 1% of cocoa flavoring. This product is primarily aimed at chocolatiers, gelato makers, bakers, and professional chefs. According to Prova, using flavoring can bring down cocoa costs for companies by 20%.

YEAST EXTRACTS

According to yeast solutions company Ohly, specific yeast extracts can also help make up for lost flavor intensity when cocoa is reduced in different formulations by enhancing brown, roasted, and bitter notes in cocoa. Upon heating, the sugars and amino acids in yeast undergo the Maillard reaction to produce these flavors and colors to reinforce depth and sweetness in reduced cocoa formulations.

Another yeast ingredients specialist Biospringer has a fermentation-derived flavor booster for chocolate makers to cut cocoa content. This is heat-stable and pH-neutral, and can be applied across a diverse range of processing conditions.

Yeast extracts are also vegan and can align with clean label requirements.

COCOA-FREE COCOA

A number of companies are just getting rid of cocoa altogether and have gone back to the drawing board to recreate cocoa from scratch - eliminating the bean from the scene. 

What this means for R&D, Procurement & Finance

Cocoa alternatives aren’t just an R&D problem. They touch procurement strategy, financial forecasting, brand positioning, and even consumer trust. We’ve been speaking to people in the chocolate industry across different teams to see how they are working on solving this problem. Here is a round-up of some of the strategies we’ve heard so far.

For R&D: Reformulate without compromising

• Prioritize sensory trials. Cocoa’s magic isn’t just in flavor, it's aroma, color, mouthfeel. Swapping ingredients demands full sensory validation, not just taste testing.
  

• Layer solutions. The best outcomes often combine multiple tricks: reducing cocoa, adding flavor boosters, adjusting mouthfeel, all together.
  

• Mind shelf life and stability. Cocoa is naturally stable. Some extenders, like fruit extracts or dairy concentrates, can impact shelf life, water activity, or oxidation. Shelf-life testing becomes crucial.
  

• Watch the labels. Some alternatives can trigger new allergen risks or require different labeling (e.g., malt = gluten, yeast extracts). Collaborate with regulatory teams early to protect clean-label claims.
  

• Use reformulation as a functional upgrade. Swaps like pomegranate extract or yeast-based ingredients can also add fiber, polyphenols, or plant-based appeal. These help go beyond just survival and help build future-ready products.
  

For Procurement: Diversify and de-risk

• Expand sourcing beyond cocoa. Build partnerships with specialty ingredient suppliers to future-proof supply chains.
  

• Lock in alt-ingredient volumes early. As shortages are inevitable, alternatives will become popular. Secure contracts now, not after competitors scoop up supply.
  

• Double down on supplier vetting. New ingredients mean new consistency risks. Invest in stronger supplier qualification and tighter spec controls, especially with start-up and specialty providers.

For Finance: Rethink margin math and brand math

• Flex your formulas, flex your pricing. Building adaptable formulations (the ability to toggle cocoa content up or down) gives you crucial margin protection during market swings.
  

• Budget for marketing. Ingredient changes (even smart ones) can confuse consumers. Set aside funds for brand storytelling if you need to explain reformulations or launch cocoa-reduced SKUs.
  

• Model innovation ROI, not just raw savings. Cocoa alternative strategies aren’t just a quick cost play. Done right, they build supply chain resilience, sustainability narratives, and new growth opportunities. Model that longer-term upside, not just year-one savings.
  

The new chocolate playbook

The cocoa crisis is very real, but it’s also a catalyst. It’s forcing manufacturers to rethink the fundamentals:

• What makes chocolate taste like chocolate?

• How can ingredients be reused or reimagined?

• How can businesses protect themselves against volatile markets without losing consumer love?

We live in a world where climate risks, supply shocks, and shifting consumer expectations are the new normal. The days of just focusing on cutting costs are over. Now it’s all about building agility into products, supply chains, and brands, so the next disruption doesn’t knock you sideways.

Looking to future-proof your chocolate portfolio?

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