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.”

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. 

This article is an excerpt from the December 2024 issue of Baking & Snack. To read the entire feature on Chocolate, click here.