Chocolate solutions: Redefining indulgence in the age of mindful, plant-based, and healthy eating

As the chocolate industry grapples with social, ethical, and economic challenges ranging from climate change to cocoa-linked deforestation, consumer demand shows no signs of slowing down. 

“The world is changing, with a growing population and increasing demand for even more sustainable foods, requiring an evolution of current models. We see a need to develop a future-proof food model capable of efficiently replicating consumers’ favorite products,” Bhakti Pawani, product marketing specialist at Cargill, tells Food Ingredients First.

An increased interest in better-for-you confections with enhanced nutritional profiles, plant-based and dairy-free offerings, and sustainable ingredient-sourcing practices is pushing innovation among leading industry players in the chocolate sector.

We speak to Cargill, AAK, Sensient Flavors & Extracts, and Luker Chocolate to discuss diversifying demands, emerging challenges, and solutions in an evolving chocolate market.

“Permissible indulgence”

Today’s health-conscious consumers are focused on health-oriented features, even in conventionally indulgent categories like chocolate.

According to Cargill’s proprietary research from 2022, 64% of consumers actively avoid sugars, with 41% opting for lower-sugar alternatives of their favorite products. “However, this shift toward more nutritional options doesn’t mean sacrificing taste — a non-negotiable for most shoppers,” says Pawani.

Similarly, Christiaan Middelhoven, head of Chocolate Confectionery Fats & Bakery at AAK, highlights that the company’s primary research, Chocolate Motivations consumer study, uncovers the “permissible indulgence” trend, where consumers want to indulge in chocolate while maintaining a healthy lifestyle.

“With the rising awareness of healthy eating, there’s a growing demand for products that allow indulgence without guilt.”

“The target audience for this concept would be occasional and Mindful Indulgers, representing 34% of consumers globally. A permissible indulgent concept could include chocolate with reduced sugar, fat, and calories, made with natural sweeteners and healthier fat alternatives. These products allow consumers to indulge without compromising their health goals.”

Reformulating for nutrition

Balancing indulgence with nutritional enhancements can present multi-fold technical challenges.

According to Pawani, brownies exemplify this challenge as they “traditionally fall into Nutri-Score categories like D or E due to high levels of sugar and saturated fats.”

“Yet, brownies also present a significant market opportunity. As one of the top five applications for bakery innovation, brownies have seen a 6% increase in new product launches from 2021 to 2023 and a 4% compound annual growth rate in value,” she notes.

“We have developed brownie prototypes with significantly improved Nutri-Score ratings: Nutri-Score C with 30% sugar reduction, low sodium, and high fiber and even Nutri-Score A with 85% sugar reduction, low sodium, and high fiber.”

Nutri-Score improvement can help drive acceptance, but consumers want that “delicious chocolatey taste and color.”

Daniela Quintero, director of Design and Product Development at Luker Chocolate.Cargill’s Gerkens Sweety cocoa powder helps achieve this while enabling sugar reduction.

“It has a rich brown color and maintains a well-balanced chocolatey flavor with low bitterness. Additionally, Cargill’s aerated chocolate chunks, which make a chocolate name on the pack possible, offer a smooth melt-in-mouth feel and an improved Nutri-Score due to lower sugar and fat content. This illustrates how reformulation can transform a classic indulgence into a nutritionally improved treat without losing appeal.”

Meanwhile, AAK addresses the technical challenges of reduced-sugar chocolate by using alternative fats, which can deliver a smooth and creamy mouthfeel.

“Our research reveals that 46% of consumers globally prefer a soft and smooth bite sensation. Also, incorporating air into chocolate using specific fat compositions results in lighter, low-calorie treats that still feel satisfying. The study also suggests that Mindful Indulgers are particularly interested in light & airy chocolate textures,” reveals Middelhoven.

He adds that sugar-reduced chocolate can face textural issues such as bitterness and blooming, which he defines as white discoloration caused by fat migration.

“Nearly eight out of ten consumers globally have noticed bloom on their chocolate, associating it with being ‘old’ and detecting a difference in taste compared to chocolate without bloom. Using stable fats like high-oleic sunflower oil, shea butter, or carefully fractionated palm fats ensures consistent structure and appearance.”

Tapping inclusivity with plant-based possibilities

The uptake of plant-based and flexitarian diets has led to the rise of dairy-free chocolate. Industry experts indicate consumer demand for plant-based options intersects with cleaner ingredients in this space.

“One key trend is the increasing focus on clean label formulations, with brands prioritizing natural ingredients, minimal processing, and transparency about where their ingredients come from. In the end, people want products that reflect their values, such as environmental protection or ethical sourcing,” notes Nandrianina Raboanason, marketing manager at Sensient Flavors & Extracts Europe.

Daniela Quintero, director of Design and Product Development at Luker Chocolate, agrees.

“The demand for plant-based chocolate remains strong, particularly in European and North American markets, where consumers are increasingly mindful of health, sustainability, and ethical considerations. We are seeing an increasing connection between plant-based and ‘free from.’ Demand for cleaner products includes non-GMO, gluten-free, and allergen-free options.”

According to Raboanason, the growth of dairy alternatives is gathering steam as companies turn to oat, almond, and coconut milk to mimic conventional textures, which bodes well for lactose-intolerant consumers.Nandrianina Raboanason, marketing manager at Sensient Flavors & Extracts Europe.

“In that way, the chocolate category becomes more and more inclusive, with alternatives that are getting better, bringing them close to the traditional dairy chocolate.”

However, inclusivity demands rigorous testing due to different performance levels of ingredients.

“For instance, while tiger nut or plant-based milk ingredients may seem similar, their unique characteristics can hugely impact the end product’s sensory profile and performance on a technical level. Our R&D team carefully assesses factors like fluidity, stability, and consistency to guarantee that every alternative ingredient delivers exceptional taste and reliable functionality,” reveals Quintero.

“This ensures that alternative ingredients improve — rather than compromise — the chocolate experience.”

Meanwhile, Cargill is exploring plant-based possibilities for “future-proof products” in partnership with Voyage Foods.

“Voyage is decoupling foods from traditional source raw material — creating new alternatives to the food and drink we love while striving to be more sustainable, scalable, and cost-effective. Voyage’s patented technology, based on gently roasted and processed raw materials such as sunflower kernels and grape seeds paste, offers new alternatives to indulgent treats,” reveals Pawani.

Novelty meets sustainability

Consumer appetite for creative and convenient formats is fuelling NPD among some, like Luker, which is using novelty as an opportunity to incorporate sustainability more deeply into operations. An example is its upcycled cacao juice concentrate, a natural, vegan sweetener derived from cacao pod pulp.

“It’s a byproduct of chocolate production that reduces waste, improves farmer incomes, and adds a unique, tangy honey-like flavor to a range of applications,” says Quintero.

For Raboanason, the premium plant-based chocolate segment offers many opportunities to develop novel concepts.

“Sophistication is key. Think of high-quality, exotic ingredients like flowers or spices, with specific provenance, artisanal craftsmanship, or collaborations (with chefs) or unique, bold flavor combinations like ‘swicy’ (sweet and spicy) or ‘swalty’ (sweet and salty) — to stand out in the market and create a more luxurious experience.”

As consumers increasingly seek “memorable chocolate experiences,” companies emphasize elevating chocolates’ sensory appeal. AAK’s Middelhoven reiterates the role of fats and oils in unlocking this.

“We are focusing on ChocoBakery as a multilayer experience, where oils and fats can improve both sensory delight and functional performance in distinct textures in each layer, control melting profiles, maintain integrity in multilayer products, and ensure a glossy, premium look while maintaining snap and melt-in-the-mouth properties.”

“A play on appearance and texture combines visual appeal with textural variety to create a memorable experience. This concept is especially appealing to Gen Z who enjoy new, fun, and sensory experiences, highly interested in multi-textured and visually appealing products, and to families seeking engaging and fun treats,” he notes.

Navigating industry challenges

While the cocoa industry is facing challenges due to poor harvests in key cocoa-producing regions due to climate change, Luker’s VP for Cacao Sourcing & Sustainability, Julia Ocampo, says Colombian harvests have remained consistent.

Luker’s VP for Cacao Sourcing & Sustainability, Julia Ocampo.“As farmers have been able to invest more in their farms, we are seeing the results in quality and productivity.”

“That said, we have a dedicated team who work directly with producers and local associations to provide targeted, long-term support to resolve any productivity challenges and implement agroecological practices — like agroforestry systems — that make cocoa more resilient to climate change.”

Cargill, too, is navigating the “unprecedented industry-wide situation” with several strategic advances, including farmer support and traceability.

“We supply Nestlé with segregated cocoa to produce their ‘Breaks for Good’ KitKat bar, available in Europe. The beans come from cocoa farming families who are a part of Nestlé’s Income Accelerator Program. This program aims to close the living income gap in cocoa farming communities while promoting good agricultural practices in farming operations,” says Pawani.

Meanwhile, Sensient’s expertise in flavor and extracts for cocoa alternatives allows it to deliver taste solutions amid supply chain or price volatilities, issues that the industry is all too familiar with.

“We incorporate natural compounds and extracts and use advanced flavor technologies to reach the complexity of cocoa while considering cost-effectiveness. Additionally, our food colors ensure visual appeal and color-stability of cocoa-based products, even when its content is significantly reduced or substituted,” concludes Raboanason.