Nestlé has announced a pioneering process that could reshape global cocoa production at a time when climate change and soaring costs are straining the supply of the world’s favorite sweet treat.
The Swiss food giant said its R&D team has developed a method that uses up to 30% more of the cocoa fruit—including the pulp, placenta, and pod husk, in addition to the beans—to produce chocolate without compromising taste. The innovation not only reduces waste but also offers farmers a chance to earn more from each harvest.
The discovery comes as cocoa prices, which hit a record high of more than $12,000 a ton in late 2024, have since fallen below $8,000. While prices have eased thanks to better weather and rising production, volatility remains high, with experts warning of persistent climate-driven challenges in major growing regions such as Ivory Coast and Ghana.
“Climate change is increasingly affecting cocoa yields around the world. We are exploring innovative solutions that could help farmers maximize the potential of their harvests,” said Louise Barrett, head of Nestlé’s Confectionery R&D center in York, U.K.
Nestlé’s approach collects the entire cocoa pod as a wet mass, which then ferments naturally to unlock chocolate flavor before being dried, roasted, and ground into flakes. The company believes the technique could provide a more sustainable pathway for the industry, where traditionally only the beans are used and much of the fruit is discarded.
The move follows industry-wide efforts to secure cocoa’s future. Earlier this month, Mars revealed it was turning to CRISPR gene-editing technology to develop more resilient cocoa plants, while Mondelēz International has invested in lab-grown cocoa through startup Celleste Bio.
Despite falling prices, chocolate demand remains robust. U.S. confectionery sales hit a record $21.4 billion last year, with 65% of consumers indulging, according to the National Confectioners Association. Yet, higher costs are pushing confectionery makers to raise prices. Hershey has signaled double-digit increases, while Lindt & Sprüngli hiked prices 15.8% in the first half of the year. Mondelēz, which owns Toblerone and Milka, has also warned of further hikes in 2025.
With its latest breakthrough, Nestlé hopes to cushion the blow of cocoa volatility while giving consumers their beloved chocolate in a more sustainable and climate-resilient way.