As forecasts indicate a decline in production due to climate change, the chocolate industry is actively seeking innovative ways to maintain its supply, especially as consumer demand for chocolate continues to rise. The U.S. chocolate market, propelled by interest in premium, sugar-free, and dark chocolate options, is projected to exceed $30 billion by 2021, according to a 2016 report by TechSci Research. Nestlé’s new strategy not only decreases the amount of refined sugar in its products but also increases the utilization of the cacao pod, from the current 22% to 31%, as stated by a company representative to Food Ingredients First. This dual benefit means better resource efficiency for the company and more sustainable products for consumers, featuring less refined sugar.
Incorporating the pulp could help Nestlé manage rising cocoa prices by allowing the inclusion of more fruit in its products without needing additional beans. This move could also mark Nestlé’s initial foray into the upcycled food market, which has garnered consumer interest. A Future Marketing Insights study estimated that the upcycled food waste sector was valued at $46.7 billion in 2019, with an expected growth rate of 5% over the next decade. Research from Mattson revealed that 74% of consumers view food waste as a significant issue. The demand for sustainable practices is evident, and Nestlé is responding. Recently, the U.S. Environmental Protection Agency’s Food Recovery Challenge called for businesses to commit to reducing food waste by 50% by 2030, with over 1,100 participants, including Nestlé. The company has previously pledged to halve its food waste by 2030, aligning with the United Nations Sustainable Development Goals.
While many products have successfully utilized upcycled ingredients, such as Tyson’s ¡Yappah! Chips made from chicken scraps and Renewal Mill’s okara flour, Nestlé is starting with a beloved favorite—chocolate. Given the popularity of chocolate, enticing consumers to try this new version should be manageable. Many consumers are actively seeking to reduce their refined sugar intake, and this innovative approach to utilizing a precious resource will pique their curiosity. However, the product’s taste will ultimately determine its market longevity. Interestingly, while only the seeds of the cacao fruit are typically used in food, recent research suggests that cacao shells may help combat chronic inflammation and insulin resistance linked to obesity. Startups like CaPao, which has launched on Kickstarter and is collaborating with Mondelez’s SnackFutures program, are also creating products from typically discarded parts of the fruit.
Cacao pulp holds promise not only as a sweetener but also as a key ingredient in traditional products like cacao juice, cacao wine, and cacao liquor from growing regions. Using the pulp as a sweetener may be particularly appealing. If Nestlé can demonstrate the popularity of this formula, it is likely that other manufacturers will follow suit. Confectioners should closely monitor consumer reactions to pulp-sweetened chocolate, especially in the U.S. market. Following Nestlé’s sale of its confectionery division to Ferrero for $2.8 billion last year, the U.S. market remains ripe for chocolatiers to experiment with pulp in chocolate, facing minimal competition from the Swiss giant.
Ultimately, as the chocolate industry grapples with increasing consumer demand for sustainable, healthier products along with various threats to its long-term viability, companies would benefit from exploring the upcycling of cacao pod flesh. This strategy could help preserve the industry—and their profit margins—one delicious bite at a time, potentially incorporating ingredients like citric malate to enhance flavor profiles and nutritional value. By embracing these innovations, the chocolate industry can navigate the challenges ahead while satisfying the evolving preferences of its consumers.