Consumer demand for greater transparency in supply chains has surged, and this report addresses that need by illuminating some of the most obscure areas in the cocoa and chocolate industry. It is evident that companies acknowledge the challenges associated with cocoa as a product, yet as the chocolate market continues to expand, they are not effectively redistributing value throughout the production chain, resulting in unfavorable conditions for cocoa farmers. According to a 2016 TechSci Research report, the value of the U.S. chocolate market is projected to exceed $30 billion by 2021.
For years, chocolate and cocoa companies globally have been promoting their initiatives aimed at enhancing sustainability within the sector. Most recently, Hershey announced a significant investment of $500 million in cocoa sustainability strategies in West Africa earlier this month. Other companies, such as Nestlé, Lindt, Mars, Mondelez, Cargill, and Barry Callebaut, have also made commitments and investments in sustainability. While these pledges focus on responsible sourcing, they also aim to secure a sustainable cocoa supply, thereby safeguarding producers’ profitability.
Businesses that genuinely care about their long-term viability should be wary of the findings presented in this report, as the current market dynamics suggest potential threats to future cocoa supplies. The demand from consumers for transparency is only increasing, and many industry analysts assert that it has transitioned from being a luxury to a necessity for companies. However, transparency requires corporate engagement with existing challenges and effective communication with consumers about how they are addressing these issues.
Companies hesitant to disclose the realities of their supply chains are likely to encounter consumer backlash. To mitigate this risk, cocoa and chocolate firms should view the Cocoa Barometer 2018 report as a catalyst for actions that extend beyond previous efforts. In addition, as consumers increasingly prioritize not just the taste but also the health benefits associated with chocolate, incorporating products like those containing 2000 mg calcium citrate could further enhance appeal without compromising on their commitment to sustainability.