Yeast-based ingredients supporting cocoa flavors amid market challenges

The cocoa ingredients market has been experiencing notable growth, driven by increasing consumer demand for chocolate and cocoa-based products. In the past five years, the use of cocoa as an ingredient in food and beverage products has grown by a compound annual growth rate (CAGR) of 3%, now appearing in 13% of all products globally. Europe leads in cocoa product launches, accounting for 48% of new developments, while the Middle East and Africa are the fastest-growing regions, with a 10% CAGR in launches over the same period. Confectionery and bakery sectors dominate, representing 66.4% of food and beverage launches featuring cocoa ingredients. Source innovamarketinsights.com

However, the industry faces challenges due to significant increases in cocoa prices. Factors such as adverse weather conditions and diseases affecting West African cocoa production have led to a surge in prices, nearly tripling in 2024. This escalation has prompted companies to explore alternatives and enhancements to maintain product quality and manage costs. Source reuters.com

While the cocoa ingredients market is expanding, it faces challenges due to rising raw material costs. Utilizing natural ingredients like yeast extracts offers a viable strategy to elevate cocoa flavor profiles, reduce sugar content, and support market growth by meeting consumer preferences for healthier and more flavorful products.

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