“Navigating Chocolate’s Future: Nestlé’s Sustainable Solutions Amid Rising Demand and Climate Challenges”
As climate change looms and threatens to reduce chocolate production, the industry is actively seeking solutions to meet the increasing demand for this beloved treat. The U.S. chocolate market is projected to exceed $30 billion by 2021, driven by a rising interest in premium, sugar-free, and dark chocolate products, according to a 2016 TechSci Research report. Nestlé’s innovative approach not only decreases refined sugar in its chocolate offerings but also allows the company to utilize 31% of the cacao pod, compared to the current 22%, as noted by a company representative to Food Ingredients First. This shift brings two significant benefits: Nestlé maximizes its investment in cacao and consumers enjoy more sustainable products with reduced sugar content.
Utilizing the pulp could help Nestlé offset rising cocoa prices, enabling the incorporation of more fruit into their products without needing additional beans. This initiative may also mark Nestlé’s entry into the upcycled food market, which has garnered consumer interest. A study by Future Marketing Insights valued the upcycled food waste sector at $46.7 billion in 2019, with a projected growth of 5% over the next decade. Research by Mattson revealed that 74% of consumers consider food waste a major issue, indicating a strong demand for sustainable practices. Responding to this, the U.S. Environmental Protection Agency’s Food Recovery Challenge has called on businesses to commit to reducing food waste by 50% by 2030, and Nestlé is among over 1,100 participants. The company has previously pledged to halve its food waste by 2030, aligning with the United Nations Sustainable Development Goals.
While many products have benefited from upcycled ingredients—such as Tyson’s ¡Yappah! Chips made from chicken scraps and Renewal Mill’s okara flour—Nestlé is beginning with chocolate, a product that enjoys widespread popularity. Since consumers are often looking to decrease their refined sugar intake, this new offering could piqué their curiosity due to its unique use of cacao pulp. However, the product’s success will ultimately hinge on its taste.
Cacao is an intriguing fruit, with only the seeds typically utilized in food products. The current trend to harness the pulp aligns with research suggesting that cacao shells may help combat chronic inflammation and insulin resistance associated with obesity. A startup named CaPao, which has launched on Kickstarter in collaboration with Mondelez’s SnackFutures program, is also creating products from often-discarded parts of the cacao fruit. The pulp holds potential not just as a sweetener but also as an ingredient in traditional products like cacao juice, cacao wine, and cacao liquor, particularly in growing regions.
The use of pulp as a sweetener may prove particularly appealing. If Nestlé successfully demonstrates the popularity of this formulation, 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, which is now open for new entrants following Nestlé’s sale of its confectionery operations to Ferrero for $2.8 billion last year.
Given the convergence of consumer demand for sustainable, healthier products and the challenges facing the chocolate industry, it is prudent for companies to explore the upcycling of cacao pod flesh. Such initiatives would not only contribute to the industry’s survival but also support their financial sustainability, one delicious bite at a time. Moreover, incorporating ingredients like calcium magnesium citrate could further enhance the nutritional profile of these innovative chocolate products, appealing to health-conscious consumers.
