Cargill: Upgrading for the Changing Chocolate Market, pt 1

The chocolate market has changed a lot over the past decade. 

Complex supply chain dynamics, climate change and a visible shift in consumer preferences has led to marked changes in consumer demand. 

Ethical sourcing is a big priority for many, with the rise of brands like Tony Chocolonely and Green & Black's which position this a major selling point. 

Customers also are increasingly craving dark and premium varieties, seeking to indulge in a healthier way and attracted to options that offer something new in an extremely crowded market.

But it's not just the nature of consumer demand that has changed. It is also where that demand is coming from. 

While Europe and North America remain the biggest chocolate consumers, markets in India, China and Africa are starting to see a surge in demand for chocolate. 

Urbanisation and the growing middle class are contributing factors, as is the global reach of snack and confectionary manufacturers like Mondelez International and Kraft Heinz. 

In the face of this changing market, manufacturers must adapt to remain competitive. 

Cargill, the leading manufacturer of cocoa, chocolate, speciality fats, sweetener and other dessert products is leading the way, cementing its future in a changing chocolate landscape. 

Cargill: Asian expansion

So, demand in Asia for chocolate- and other rich food and beverage choices- is growing.

This is a reality that Cargill itself has confirmed, through its 2024 proprietary TrendTracker study which found that APAC consumers have a growing appetite for experimentation and novelty, desiring foods with unique textures, tastes and flavours. 

To meet this rising appetite, Cargill has created a new cocoa production line at its cocoa processing plant in Gresik, Indonesia.

This new line enables the creation of speciality cocoa solutions with a higher degree of customisation. This customisation not only meets growing market desire for experimentation, but also enables Cargill to tailor its cocoa powders and liquors to the dominant flavour and sensory profiles of the Asian market.

Where we see, especially in East Asian countries like China and Japan, a preference for desserts that are significantly less sweet than what's desired in the West. 

“When it comes to bakery, chocolate confectionery and ice cream, as well as the indulgent café-style beverages in foodservice, cocoa and chocolate have always been one of the most popular ingredients," says Francesca Kleemans, Managing Director of Cargill’s Food Solutions Southeast Asia.

"Cargill expects high growth in these indulgence categories in coming years, driven by consumer demand for multi-sensorial experiences, healthy indulgence and conscious consumption.

“I am delighted to unveil this investment by Cargill that resets the industry standards for cocoa & chocolate competitiveness and innovation, aiming to meet the needs of Asia’s most demanding customers and consumers.

"Through our new capabilities in Gresik, we are looking forward to co-creating with our customers in Asia.

"Leveraging the latest manufacturing technology and advanced R&D, the new line enables breakthrough innovation and unparalleled speed to market.

"At a time where global supply chains are experiencing tremendous challenges, near-shoring strategies are critical for our customers to maintain availability and competitiveness.

"This is where we are able to add value and support customers through our “Asia for Asia” solutions."

The manufacturer previously established the Cargill Cocoa Development Centre in Gresik last November to drive innovation and development.

Now celebrating the addition of a new production line to this, Cargill has launched two dark Gerkens cocoa powders range and a new range of Cargill® Craft cocoa liquors that deliver a variety of flavours from fruity and fresh to roasted.

Cargill has sixteen premium manufacturing sites across Asia and innovation facilities in Singapore, Malaysia, China, India and Indonesia. In recent years it has solidified its strategy to offer comprehensive “Asia for Asia” solutions, which cover production, sourcing, market insights and innovation to serve customers in the continent and beyond.

A facility just for coatings & fillings

The manufacturer pursues expansion and innovation in European markets too, recently increasing the capacity of its coatings and fillings plant in Deventer, the Netherlands by 60%.

A significant percentage for a facility devoted exclusively to the production of coatings and fillings, the only of its kind across Cargill’s European manufacturing facilities.

This upgrade will help provide innovative solutions for customers navigating a crowded chocolate confectionary market, with coatings that offer a diversity of texture, flavour and mouthfeel qualities to match consumer desires. 

Included in the upgrade is a segregated nut-free production line, ensuring buyers with allergies remain safe and nut-free options avoid contamination from the other hazelnut line.

Both lines have been carefully designed to offer more customer flexibility, increase production volume and maximise efficiency. 

The facility can produce vegan, low-sugar and palm oil-free coatings and fillings tailored to consumer preference. 

In addition to this, Cargill is tripling its production of white chocolate in Berlin, Germany and freeing up greater space for more 'Belgian' claimed chocolate in Mouscron and Antwerp. 

Cargill also plans to transform its Rouen facility in France into one of Europe's leading cocoa liquor and speciality chocolate production facilities. 

This transform will introduce a new dedicated line without milk ingredients, enabling greater production of vegan chocolate. It will also allow Cargill to produce its complete special liquor portfolio, ranging from tailored recipes, various origins, organic, sustainable segregated varieties, and specially treated liquors. 

What Cargill should highlight to other manufacturers is the importance of evolving and adapting to changing consumer tastes. 

It's no secret that servitisation-intimately tailoring services and products to consumer needs through technology- is the future.

This reality is so prominent in the chocolate and confectionary markets, where even manufacturers who can sell based on brand alone are pursuing innovation and development. 

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