KANSAS CITY — It’s hard to beat chocolate. It’s versatile and can be used in chewy, crunchy and soft treats, and chocolate pairs with everything from salty nuts to sour fruits. Its high cost due to a global cocoa shortage, however, has limited chocolate innovations this past year. Bakers are exploring ingredient technologies to extend chocolate usage in recipes to assist with lowering costs and ensuring supply.

“One of the biggest challenges in the baking category is the instability of ingredient costs and availability, especially raw cocoa powder,” said Mark Webster, vice president of sales and business development, T. Hasegawa USA. “The global supply chain is experiencing a chocolate crisis after the cost of raw cocoa powder surged to a historic high of nearly $10,000 per metric ton early in 2024. Severe droughts in West Africa, where most of the world’s cocoa is produced, devastated crops and reduced the global supply of cocoa.”

In its Aug. 31 report, the International Cocoa Organization (ICCO) forecast 2023-24 world production at a deficit of 462,000 tonnes compared with demand, an eightfold increase from its revised 2022-23 deficit estimate, according to a Sept. 23 Sosland Publishing Markets Report. A poor harvest in West Africa, which provides almost 70% of global supply, was driven by adverse weather conditions, aging trees, pests, disease and gold mining that took land from cocoa farms.

“These effects are likely to continue into the future,” Webster said. “The flavor industry is helping baking brands adapt to changes in weather patterns and ensure stability in manufacturing costs and competitive pricing.”

Flavor alternatives for bakers

Ingredient suppliers offer an array of technologies to assist with reducing reliance on cocoa and the chocolate made from it. Some solutions have been around for a long time, while others are new.

T. Hasegawa, for example, recently introduced a cocoa powder replacer. It was developed over a multi-year period by the company’s US research and development team in anticipation of global supply issues. The ingredient is an alkalized, low-fat cocoa flavor that provides a substitute for traditional cocoa-based powder.

“This innovation is a no-compromise solution that amplifies the natural flavor profile of cocoa with minimal raw cocoa powder needed, enabling manufacturers to reduce the quantity of raw materials and lower or stabilize costs,” Webster explained. “Since this replacer is ‘all natural,’ products can retain ‘natural flavor’ labeling. It also poses no interactions with other ingredients.”

Wixon offers a natural flavor modification technology that also allows bakers to reduce the amount of cocoa powder or chocolate ingredients in a recipe. Since the formulation still contains cocoa or chocolate, there is no impact on the standard of identity.

“The technology enhances the brown and roasted notes,” said Denise Baldeh, director of research and development, Wixon. “The starting use level is normally around 0.1%, and customers can see a 10% reduction in their cocoa or chocolate ingredients and sometimes more, depending on the bakery application.”

At the Institute of Food Technology’s FIRST Expo earlier this year, Malt Products launched MaltRite Cocoa. The ingredient is made from whole grain malted barley and can replace cocoa powder up to 50% in a bakery formulation for products like brownies, chocolate cake and chocolate cookies. In addition to helping bakers cut back on cocoa powder costs, MaltRite improves moisture retention, texture and mouthfeel, and extends shelf life.

Another company in this space, Virginia Dare, has long offered cocoa extracts and chocolate flavorings that create rich, indulgent flavors while minimizing the dependency on cocoa powder or chocolate.

“These flavoring technologies enable bakers to reduce the amount of cocoa without sacrificing the taste quality of their products,” said Philip Caputo, the company’s marketing and consumer insights manager. “While our cocoa extracts and chocolate flavorings are formulated for ease of use, some challenges may arise during manufacturing. For example, depending on the level of cocoa reduction and the application, the bulking or color may need to be replaced with an alternative.”

Such flavors typically come in liquid and powder forms. The baker needs to ensure that they are properly integrated into the mix to achieve optimal flavor dispersion.

“The future of chocolate ingredients in baked goods is likely to see more complex flavor combinations,” Caputo said. “For example, the fusion of cocoa with spices like chili to create unique offerings like Mexican chocolate. Consumers are increasingly seeking novel flavor experiences, and as their taste expectations evolve, we anticipate that trend-driven consumer insights will continue to play a crucial role in helping bakers innovate and meet market demand for unique chocolate flavor experiences in baked goods.”

Chocolate is versatile and combines well with other taste profiles. Playing up these alternative flavors helps keep cocoa and chocolate usage down. It’s also possible to emphasize the many non-characterizing flavors of cocoa, such as honey, malt, nutty, roasted and vanilla. And don’t forget the characterizing flavors that differentiate dark from milk chocolate as well as the unique tastes of ruby and white chocolate.

“We foresee chocolate continuing to be a foundational flavor in baked goods but with an increasing focus on pairing it with more complex or unique flavor profiles,” said Haya Anabtawi, senior principal scientist, applications development, Ajinomoto Health & Nutrition. “As consumer palates evolve, bakers will likely explore combinations that elevate chocolate’s inherent richness while adding layers of flavor complexity.”

Kokumi ingredients, which provide richness and body to foods, can play a role in this evolution. The addition of kokumi ingredients, such as yeast extract, enables formulators to create sophisticated, multidimensional flavor experiences that resonate with modern consumers.

“Bakers can achieve a rich, high-quality flavor experience without relying solely on higher-quality or more expensive cocoa,” Anabtawi said. “Kokumi helps deliver a sense of depth, complexity and roundedness to chocolate products, making it an excellent solution for reducing the amount of cocoa used while maintaining a premium eating experience. These ingredients are not direct replacements but rather flavor enhancers, improving the overall sensory profile of the product.”

Bakers using kokumi ingredients must ensure they are properly balanced with other ingredients to optimize flavor and texture.

Identifying other options

If calling out the words cocoa or chocolate on the label is not required, bakers and snack producers can achieve cost savings by using compounds and coatings. These ingredients often resemble and deliver the sensory properties of chocolate, but because they are made with a different fat source than cocoa butter to achieve the texture of chocolate, they do not meet the standards of identity for chocolate. By swapping out the cocoa butter with another fat, different melt profiles are possible. Compounds also allow for more innovation around colors and flavors.

Cargill offers a wide selection of chocolate-flavored compound coatings and drops, representing dark, milk and white chocolate flavors and colors. They can serve as a direct replacement for real chocolate options but cannot be labeled as chocolate. This is less of an issue for products sold without ingredient statements, such as those destined for foodservice and in-store bakeries.

“These offerings, alongside our portfolio of chocolate coatings and inclusions, enable brands to cover the spectrum from premium- to value-positioned products,” said Brad Wright, bakery and snacks research and development manager, Cargill. “They address a broad range of performance requirements and application needs. We’ve recently expanded our chocolate-flavored confectionery compound drops with two new additions. These inclusions deliver the rich, chocolatey flavor consumers crave, while providing bakeries a budget-smart approach to elevate their sweet treats.”

Available as mini and standard chips, the new chocolate-flavored inclusions look, taste and perform like chocolate but are made with a cocoa butter alternative, he said.

“As a result, they are less exposed to cocoa market volatility and offer a cost-conscious way to infuse cookies, bars and other bakery creations with rich, chocolatey flavor,” Wright explained.

As with all ingredients, compounds and coatings are not a one-size-fits-all solution. Bakers need to pay attention to the design principles of the finished product.

“For example, chocolate used as a cheesecake topping has a different melting profile than chocolate used in baking,” Wright said. “It’s important to make sure the compound has the right melting point and functionality for your specific application.”

Compound coatings offer performance benefits over traditional chocolate coatings, including high-heat resistance, improved color and shine. They also have a longer shelf life, thanks to the delayed appearance of fat bloom.

“We’ve partnered with Voyage Foods to scale up alternatives to cocoa-based products,” Wright said. “Other projects are also underway, as we work to help customers deliver on chocolatey indulgence in a variety of ways.”

Voyage Foods produces cocoa-free chocolate. It is made from inexpensive, widely available plant-based ingredients, many of which are upcycled from waste and side streams. With raw materials that are less expensive to source, bakers may enjoy stable pricing along with environmental, ethical and allergy-friendly benefits, according to the company. The cocoa-free chocolate is made with palm oil, shea kernel oil, cane sugar, grape seeds, sunflower protein flour, natural flavors, sunflower lecithin and salt.

Bakers must never forget that consumers are typically attracted to chocolatey bakery items for an indulgence. Too often to manage costs, formulators will simply reduce the chocolate or cut back on the cocoa powder. This move may achieve some savings, but it diminishes the experience for the consumer. With the varied ingredient solutions from suppliers, it is possible to still delight the consumer while managing costs.