The chocolate industry is facing a challenging time. Global cocoa production is experiencing a serious crisis, marked by a deficit of over 400,000 tons. One of the causes is the drop in African production, due to the aging of trees and the incidence of diseases. This shortage has drastically increased cocoa prices on the international market, reaching a new all-time high in 2024 and impacting the industry and consumers. Brazil, which also consumes the commodity imported from Africa, is suffering from the reduction in supply and is seeking alternatives to guarantee supply. One of the solutions to the crisis involves investing in research, sustainable agricultural practices and supporting producers, aiming to increase production and guarantee the quality of cocoa in the long term. In addition, in chocolate processing, there is the alternative of using CBS.
The Impact of the Cocoa Price Rise on the Market
As reported by Rural Globe in August 2024, chocolate manufacturers expect a more challenging second half of the year due to rising costs related to cocoa, which is facing one of the biggest supply crises in decades. Global demand for chocolate continues to rise; according to a survey by ABICAB (Brazilian Association of the Chocolate, Peanut and Candy Industry), consumption has seen growth of 3.9% in 2023, with expectations of a new high of 15% for 2024.
This combination of high demand and restricted supply is leading to a significant increase in chocolate prices, which in Brazil have already accumulated an increase of up to 18% between January 2023 and May 2024, according to Rural Globe. This price hike could even influence the cost of Easter eggs in 2025.
CBS: The strategic solution for the industry
In this context, CBS (Cocoa Butter Substitute or Cocoa Butter Substitute) stands out as an important strategic solution. It is a vegetable fat that can replace cocoa butter in the production of chocolates and related products, maintaining essential characteristics for the quality of the final product. CBS is produced from vegetable oils such as palm kernel oil, which share similar properties to cocoa butter, especially in melting behavior, making it a practical and effective alternative for the food industry.
Benefits of CBS for brands and consumers
- Texture and flavor: CBS stands out, offering characteristics that guarantee the quality of the final products, due to its ability to enhance the flavor of the chocolate, provide a more pleasant melting in the mouth and guarantee an impeccable appearance to the eggs, becoming a strategic ingredient for those seeking quality.
- Economic attraction: CBS is an economical alternative to cocoa butter, as it is cheaper. This price difference is due to the greater availability and competitiveness of the market value of the vegetable oils used in the production of CBS. The reduction in raw material costs allows for more competitive prices for the final product.
- Melting point: With a melting point close to human body temperature, CBS provides a smooth melt similar to cocoa butter, with creaminess and a pleasant mouthfeel.
- Favorable nutritional profile: When compared to hydrogenated vegetable oils, CBS, due to its plant origin and in view of the growing concern for health, has driven the search for products with a lower trans fat content and presents a more favorable nutritional profile, being free of trans fats.
- Stability and shelf life: CBS is stable against oxidation, which increases the shelf life of products such as Easter eggs. This stability helps to preserve the flavor, aroma and appearance of the chocolate.
- Appearance and attractiveness: The intense shine further enhances the consumer experience.
Easter: Advance planning is essential
Easter is one of the most important periods for the chocolate industry, accounting for a significant portion of annual sales. With projections indicating a rise in cocoa prices, the impact could even affect Easter eggs in 2025, making it essential for companies to plan ahead, especially regarding the supply of CBS. Chocolate industries usually position themselves to secure contracts and CBS stock in the last quarter of the year, thus stabilizing their production costs.
The recent rise in cocoa prices poses significant challenges, but also creates opportunities for innovation and market expansion. CBS stands out as a strategic solution, enabling brands to maintain their competitiveness and meet consumer demands for more affordable, quality products. With well-structured planning and specialized insights, such as those offered by Aboissa, companies can ensure a solid positioning for the upcoming Easter, navigating safely in this complex and promising scenario.
By Caroline Mendes | Broker of the Palm & Lauric Oils unit
Review by Vanessa Ferreira
