Did you know that the price of cocoa has nearly doubled in comparison to July of 2023, with no signs of reducing anytime soon? The rise in price is a direct consequence of the largest cocoa deficit caused by a variety of weather changes in the world’s leading cocoa producer and further exacerbated by geopolitical forces leading to a lack of investment in cocoa and sustainable practices. 60% of the world’s supply of cocoa is harvested in Western Africa, where unpredictable weather patterns led to an increase of disease and pests, causing expected cocoa harvest yields to fall short of projected targets for the third season in a row.
This deficiency of cocoa has forced companies to increase the price of chocolate, where consumers are met with a reported 15% increase in cost of chocolate products compared to last year according to DataWeave. Solutions to this increased cocoa price have companies scrambling to focus on less products with real chocolate as a primary ingredient. Another viable option for those who are affected by the rising cocoa price, and currently use real chocolate in their finished products, is to consider switching to compound chocolate.
What is compound chocolate?
Rather than real chocolate that is made with cocoa mass and cocoa butter, compound chocolate is made with cocoa powder and vegetable fats, like palm and coconut oil. Both real and compound chocolate are made in similar ways, as both are refined, yet compound does not require conching and tempering. The differences in production allow for ease of use, as compound chocolate simply just needs to be melted before use in any application.
How is Compound Chocolate Made?
Cocoa mass comes from the cocoa bean after the drying, grinding, and fermentation process. Following the pressing of cocoa mass, cocoa butter is removed, and cocoa powder is extracted. Vegetable fats are then added based off the desired solid fat content which determines the final form of the product. Since palm kernel oil has a high solid fat content, it is solid while at room temperature, while sunflower oil has a low solid fat content, making it liquid while at room temperature.
Price doesn’t impact taste
Since compound chocolate doesn’t contain cocoa butter, the average cost is 33% less expensive compared to real chocolate. Many would expect taste to decrease as a result of the large price gap, however in sensory testing, consumers enjoyed our Carat brand of compound chocolate nearly equal to real chocolate as inclusions in a cookie.
Trends with Compound Chocolate
1. Compound Chocolate Within Healthier Food
Health product manufacturers have begun using chocolate or other cocoa products for better taste and increased indulgence. One of the largest rising categories responsible for the use of compound chocolate is the sports nutrition and energy bars. In 2022-2023 more than 76% of sports bars launched contained chocolate or cocoa ingredients. According to Taste Tomorrow research, 42% of consumers globally say protein is the most important ingredient. To correlate with that, products launched within the cereal, energy bar, snack, and sports bar, category using compound chocolates contain claims of high protein within 53% of all products.
2. Popular Compound Chocolate Flavors
Consumers' palates are becoming more adventurous, driving innovation in finished goods and products. Despite this, over the past five years, of all the compound chocolate products introduced, milk chocolate made up 22% of the market, dark chocolate accounted for 13%, and almond flavor comprised 8%. Beyond the traditional milk and dark chocolate varieties, there is an increasing demand for unique and exotic flavors. Manufacturers are responding by incorporating compound chocolates infused with fruits, spices, nuts and even floral notes into finished goods. These innovations not only cater to the diverse taste preferences, but also enhance the versatility of compound chocolate in a wide range of applications.
3. Innovation in Textures and Application
Beyond flavor innovation, there is a focus on enhancing the texture experience of finished goods. According to Taste Tomorrow 65% of consumers in the United States are curious to try new formats and experience different textures. Manufacturers are experimenting with new formulations that offer specific melting points, viscosity levels, and stability under various conditions. This allows for easier handling, molding, and processing in different culinary and industrial applications. Compound chocolate continues to evolve from hard coatings to meet the diverse needs of manufacturers and artisans.
Solutions
In order to adhere to FDA regulations, products labeled as containing chocolate must meet minimum requirements for chocolate liquor content. Given that compound chocolate does not contain chocolate liquor, if users shift to using compound chocolate, adjustments to packaging and labeling are necessary. To avoid this, work alongside our knowledgeable Research and Development team who can create the perfect ratio of real chocolate and compound chocolate, satisfying regulations, while saving money.
Who is compound chocolate perfect for?
Puratos offers a wide variety of compound chocolates for a range of different industry and final product uses, from fillings and coatings to inclusions and decoration. Many being sustainably sourced and containing non-GMO ingredients, learn more about some products below.
Hard compound Coatings
Hard coatings are designed for decoration, dipping, and coating purposes. They come in multiple flavors and non-GMO options. Each coating is produced from sustainable cacao, free from artificial preservatives, flavors, or colors. With our Carat brand of hard compound coatings our customers can create delicious mousses and ganache, saving both money and time.
Compound Chips
A variety of chips containing intense and rich chocolate flavors, containing non-hydrogenated fats, no artificial flavors, colors, or preservatives. Available for multiple uses, ranging from baking, decorating, flavoring, and ice cream inclusion. Perfect for cookie and ice cream manufacturers looking for a delicious and more affordable alternative to real chocolate inclusions.
Learn more about our sustainable Cacao Trace program.
76% of consumers globally claim to give importance to social/ethical causes when buying food and beverages according to Taste Tomorrow survey data. All our dark and milk compound chocolates are made with our cacao trace certified cocoa powder. Cacao-Trace is the only sustainable cocoa sourcing program that improves the taste and creates value throughout the entire supply chain. Superior taste comes from local post-harvest centers where fermentation experts control the fermentation process to create only the best quality cocoa beans. Cocoa farmers also receive a quality premium and an additional Chocolate Bonus of 5 cents for every pound of chocolate sold. This can easily add 1 to 2 months of additional salary or more, and makes a huge difference to how farmers are able to support their families.
