Nigeria’s fate hanging as alternative cocoa takes centre stage in chocolate’s evolution

Onome Amuge

Cocoa emerged as the best-performing commodity in 2024, outpacing even bitcoin and solidifying its status as the most lucrative crop.

But amidst the price surge and the gains made by cocoa producers lurks a threat that could spell doom for cocoa farmers in top producers, Cote d’Ivoire, Ghana as well as Nigeria. With chocolate manufacturers beginning to turn their attention to alternative, non-cocoa ingredients, the days of cocoa-based chocolate may be numbered as the prized commodity risks losing demand in the global market.

The cocoa market experienced its worst shortage in over six decades during the 2023-2024 marketing year, with production falling short of demand in the world’s leading cocoa-producing countries, according to data from the International Cocoa Organization (ICCO) cited by ING in a research note.

The deficit in the global cocoa market has led to an increase in cocoa prices, causing turmoil for chocolate manufacturers as they struggle to operate and sustain their businesses in this challenging period.

With cocoa supplies shrinking, the industry is increasingly looking for innovative alternatives that can recreate the classic chocolate experience without relying on traditional cocoa beans.

In a bid to mimic chocolate’s distinct flavour profile, ingredients such as fava beans, oats, barley, sunflower seeds, and grape seeds are being processed through roasting and fermentation techniques, aiming to replicate the essence of chocolate without depending on cocoa as the primary ingredient.

According to reports, while cocoa-free chocolate initially emerged as a response to the cocoa shortage, it has evolved into a potential game-changer in the industry. By harnessing the power of plant-based and sustainable alternatives, cocoa-free chocolate is seen forging a new path, offering a future where chocolate can still be enjoyed without the traditional cocoa bean as the backbone.

Among the viable alternatives emerging in the cocoa-free chocolate market, fava beans are quickly gaining traction, thanks to their impressive sustainability credentials.

The case for fava beans as a sustainable alternative to cocoa beans is bolstered by a recent study by The Mills Fabrica, which found that fava beans generate between 0.23 and 0.58 kg of carbon dioxide equivalent (CO2e) per kilogramme, compared to the 1.47 kg CO2e per kilogramme associated with cocoa beans.

In addition, ingredients like oats and sunflower seeds have been found to offer a more resource-efficient and less resource-intensive solution, reducing the strain on the planet while still delivering the flavours and textures that consumers crave.

The promise of cocoa-free chocolate is not only limited to its environmental benefits as manufacturers are also recognising the potential for cost savings.

As demand for plant-based alternatives continues to rise and the market for cocoa-free chocolate evolves, manufacturers are optimistic that adopting these ingredients could not only appeal to consumers who prioritise sustainability in their purchasing decisions but also drive down production costs, allowing them to reap the rewards of a more efficient and cost-effective chocolate-making process.

Startups leading the charge to cocoa-free chocolate production

‘Planet A’ Foods is setting a new standard in the cocoa-free chocolate industry, using oats and sunflower seeds as the base for its innovative chocolate products.

The German startup’s breakthrough technology transforms these ingredients into a cocoa-free concentrate and butter, which can be combined to create cocoa-free chocolate that closely mimics the taste and texture of traditional chocolate. The company’s ChoViva product has already made its way into the market, appearing in various products such as biscuits and peanut butter cups, satisfying the sweet tooth of German consumers while keeping cocoa out of the equation.

Voyage Foods, a U.S based startup, is also revolutionising the chocolate industry by introducing cocoa-free chocolate made from upcycled grape seeds from postharvest wine production, vegetable oil, cane sugar, sunflower protein flour, natural flavours, sunflower lecithin, and salt.

In a divergence from other cocoa-free chocolate startups that leverage multiple ingredients to replicate cocoa, UK-based NUkoko has identified the fava bean, also known as the broad bean—as the key to their cocoa-free chocolate solution.

Founder David Salt, a plant scientist, noted that the seed storage protein vicilin found in the fava bean can be broken down, roasted, and transformed into a chocolatey flavour profile. By utilising a controlled fermentation and drying process, NUkoko believes they can produce their cocoa-free chocolate at a lower cost than conventional chocolate when produced at scale.

Win-Win, a London-based company, is also blazing a trail in the cocoa-free chocolate market by utilising conventional chocolate-making equipment to create alternatives made from barley and carob.

By harnessing the power of traditional chocolate-making methods, Win-Win is confident it has been able to replicate the archetypal bitterness and fruity acidity associated with dark chocolate, despite its cocoa-free ingredients.

Impact of alternative-cocoa on Nigeria’s production

Cocoa serves as a major economic driver for Nigeria, with exports averaging $543 million annually between 2019 and 2023, largely destined for European markets.

With Europe accounting for over 55 per cent of Nigeria’s total cocoa exports each year, the continent represents a crucial market for the country’s cocoa-based products, playing an essential role in its economy.

While Nigeria’s cocoa export revenue saw a 298 per cent increase in the first half of 2024 compared to 2023, there are rising indications that the country’s economy remains vulnerable to potential disruptions from cocoa-free chocolate alternatives amid rising cocoa prices.

Sharing his sentiment, Peter Aikpokpodion, a professor of Genetics and Biotechnology at the University of Calabar, believes that the rise of cocoa-free chocolate alternatives presents an opportunity, rather than a threat, for Nigeria’s cocoa industry.

According to Aikpokpodion, the competitive pressure from cocoa-free alternatives can stimulate innovation and efficiency in cocoa production, ultimately strengthening Nigeria’s cocoa industry.

“We need to move towards cocoa processing aside from raw production as this would play a major role in increasing our cocoa profit share in the world market. The ratio per capita for cocoa processing is very high. As a result, the government needs to create partnerships with indigenous investors in this aspect. This would expand the value chain of the cocoa sector and create more jobs for the populace,” the experienced agronomist and cocoa specialist suggested.

Aikpokpodion stressed the importance of providing affordable and improved farming tools and materials to Nigerian cocoa farmers, which would help increase productivity and competitiveness.

Furthermore, he emphasised the need for quality improvement and control measures, which can ensure the consistent production of high-quality cocoa beans that meet the standards of international markets.

Aikpokpodion also suggested incentivising large-scale cocoa processing as a means of quality control, since larger processing operations are more likely to have the resources and expertise to maintain consistent quality standards.

“We cannot be competitive if we do not have institutions around our cocoa. If we don’t have a commission controlling it, we are showing to the outside world that we are not serious about it. It is when you have a governance framework that all these subjections can work.

“We have been exporting cocoa for many years now and nothing has happened and nothing will happen until something is done to create an institutionalised framework to guide and coordinate the cocoa industry and elevate its relevance as a major export earner and wealth generation commodity,” he added.