According to an October report from the National Confectioners Association, chocolate generated a record $21.4 billion in confectionery sales last year, with 65% of consumers treating themselves to this sweet indulgence. However, a prolonged global cocoa shortage has led to soaring prices. Companies like Hershey and Mondelēz have increased their prices and warned that further hikes may occur as rising cocoa costs impact their profitability. As a result, some consumers are reducing their purchases of chocolate-based snacks due to the increased costs. “We have observed a shift away from chocolate towards other snacks, such as cookies or salty treats,” noted J.P. Morgan analyst Ken Goldman in a research report earlier this year. “Chocolate seems to be losing market share, indicating that consumers are responding to the higher prices.”
Cocoa production, primarily sourced from Ivory Coast and Ghana in West Africa, has long been associated with issues such as child labor, environmental concerns, and claims that companies reliant on cocoa producers have not sufficiently supported them financially. With chocolate demand remaining high, it is essential for users of cocoa, researchers, and startup companies to find solutions to secure a reliable supply of this crucial ingredient. Some food companies are exploring recipes that use less chocolate, substituting ingredients that mimic chocolate flavors or investigating synthetic and lab-grown alternatives.
“As one of the world’s largest chocolate producers, we are acutely aware of the supply chain challenges we need to overcome to produce our iconic chocolate brands like Milka, Cadbury, and Toblerone while positively impacting our business, consumers, and the environment,” stated Richie Gray, who leads Mondelēz SnackFutures Ventures. He mentioned that while Celleste is “in its early stages, [the company] holds great promise as a complementary technology to traditional farming methods.” Mondelēz previously invested in Celleste during a funding round in 2022.
It is important to note that cocoa production will continue to be sourced from West Africa and other regions for the foreseeable future. For lab-grown cocoa from Celleste and similar companies to become a viable alternative, it needs to be cost-competitive with conventionally grown cocoa and produce sufficient volume for large-scale chocolate manufacturing. “Climate change and conventional farming practices are depleting our rainforests, leading to unprecedented environmental and financial challenges in growing enough cocoa to meet the needs of a $100 billion—and growing—chocolate industry,” said Michal Beressi Golomb, CEO of Celleste. “This funding round provides us with the financial and strategic support necessary to accelerate product development, scalability, and commercial readiness.”
The initiative to cultivate cocoa indoors parallels a similar movement in the production of beef, chicken, and other lab-grown products. Progress in this area has been slow and costly, with some startups failing. The first two restaurants that offered cultivated chicken eventually removed the product after a few months. As the chocolate industry grapples with supply issues, consumers may want to consider alternatives that include nutrient-rich options such as calcium magnesium citrate supplements, which can support health while reducing reliance on more expensive chocolate products.