Companies explore alternatives to meet growing chocolate demand

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WEST SACRAMENTO, Calif. As climate change threatens traditional cocoa-growing regions, companies are pioneering new methods to produce cocoa and create chocolate alternatives to keep up with rising global demand. From Northern California to Israel, scientists and entrepreneurs are developing solutions that may reshape the future of chocolate.

California Cultured, a plant cell culture company based in West Sacramento, California, is at the forefront of this innovation. The company is cultivating cocoa from cell cultures, bypassing the need for traditional tropical farming. “We see just the demand of chocolate monstrously outstripping what is going to be available,” said Alan Perlstein, the company’s CEO. By growing cocoa cells in vats with sugar water, California Cultured can produce mature cocoa in just one week—a stark contrast to the six to eight months required by traditional farming methods. This process also reduces the need for water and labor, addressing environmental and ethical concerns.

Cocoa trees typically thrive in regions within 20 degrees north and south of the equator, such as West Africa and South America. However, climate change is expected to exacerbate drought and heat in these areas, threatening the cocoa supply. To combat this, companies are not only exploring cell-based cocoa but also developing cocoa substitutes. Products made from ingredients like oats, carob, and sunflower seeds are being roasted and flavored to replicate the taste of chocolate, offering a sustainable alternative to the traditional product.

The demand for chocolate continues to grow, with U.S. sales exceeding $25 billion in 2023, according to the National Confectioners Association. However, the price of cocoa has surged due to increasing demand and crop challenges in West Africa, where the bulk of the world’s cocoa is produced. This volatility has driven interest in alternative cocoa sources.

Planet A Foods, a company based in Planegg, Germany, is one such innovator. They have developed “ChoViva,” a chocolate alternative made from oats and sunflower seeds. According to company spokesperson Jessica Karch, the taste of mass-market chocolate is largely derived from fermentation and roasting, rather than the cocoa bean itself. “The idea is not to replace the high-quality, 80% dark chocolate, but really to have a lot of different products in the mass market,” Karch explained.

Meanwhile, traditional cocoa production is also receiving attention. Mars, the maker of popular candies like M&Ms and Snickers, operates a research facility at the University of California, Davis. The facility houses a collection of cocoa trees, where scientists study disease resistance to support farmers in cocoa-producing countries. “We see it as an opportunity, and our responsibility,” said Joanna Hwu, Mars’ Senior Director of Cocoa Plant Science.

In Israel, Celleste Bio is also working on expanding the cocoa supply by growing cocoa bean cells indoors. Co-founder Hanne Volpin anticipates that within a few years, the company will be able to produce cocoa powder and cocoa butter regardless of climate conditions—a prospect that has attracted interest from global confectionery giant Mondelez, the maker of Cadbury chocolate.

California Cultured, aiming to launch its products next year, is seeking approval from the U.S. Food and Drug Administration to label its product as chocolate. Perlstein emphasized, “We basically see that we’re growing cocoa—just in a different way.” The product, which might be branded as “brewery chocolate” or “local chocolate,” is genetically identical to traditional cocoa, despite its unconventional production process.

As the chocolate industry faces the dual challenges of increasing demand and climate-related threats, these innovative approaches offer promising solutions that could redefine the future of cocoa and chocolate production.

Author profile
Paraluman P. Funtanilla
Contributing Editor

Paraluman P. Funtanilla is Tutubi News Magazine's Marketing Specialist and is a Contributing Editor.  She finished her degree in Communication Arts in De La Salle Lipa. She has worked as a Digital Marketer for start-up businesses and small business spaces for the past two years. She has earned certificates from Coursera on Brand Management: Aligning Business Brand and Behavior and Viral Marketing and How to Craft Contagious Content. She also worked with Asia Express Romania TV Show.