The chocolate industry is rapidly transforming as fluctuating cocoa supply, climate change, and rising demand for health-conscious and sustainable products force F&B players to innovate in the face of constraints. The ongoing cocoa crisis has brought sustainability to the fore, while cost pressures and shifting consumer preferences make way for novel ways to recreate conventional recipes and processes.

To address these issues, Palsgaard, global manufacturer of emulsifiers and stabilizers, is enabling chocolate manufacturers to adapt by introducing solutions that reduce raw material usage and support sustainability credentials. Food Ingredients First sits down with Kasper Stranddorf, application specialist at Palsgaard, to understand how the company balances affordability, taste, and sustainability in the age of mindful indulgence.

Given the ongoing cocoa crisis and rising demand for sustainable products, how does Palsgaard’s cocoa butter reduction address these challenges?
Stranddorf: The ongoing cocoa crisis, driven by fluctuating supply, climate change, and rising global demand, challenges the chocolate industry to adapt sustainably. Palsgaard’s cocoa butter reduction approach directly addresses these challenges by leveraging AMP, which allows manufacturers to use less cocoa butter without compromising chocolate’s signature mouthfeel and taste.

Our technology not only helps mitigate the financial impact of volatile cocoa prices but also lessens the environmental strain of cocoa farming, which is often linked to deforestation and soil degradation. Using these high-functionality emulsifiers effectively means that less cocoa needs to be farmed to produce the same amount of chocolate. By integrating these solutions, manufacturers can offer high-quality products while contributing to more sustainable production practices, meeting the demands of environmentally conscious consumers and regulatory frameworks.

How are your emulsifiers and stabilizers enabling manufacturers to innovate and stay competitive?
Stranddorf: As the chocolate industry evolves, premiumization and health-consciousness are key growth drivers. Palsgaard’s emulsifiers and stabilizers empower manufacturers to innovate across these dimensions.

For premium chocolates, our solutions enable the creation of products with complex textures, multi-layered fillings, and unique sensorial experiences, all while ensuring consistency and shelf life stability. Our plant-based emulsifiers ensure optimal processability and allow innovative chocolate recipes containing novel ingredients.

This is especially critical as consumers seek functional chocolates enriched with protein or plant-based ingredients. Whether developing vegan options, clean label products, or nutrient-enhanced offerings, we can provide the tools to meet and exceed market expectations.

How do Palsgaard’s initiatives translate into tangible benefits for manufacturers and consumers?
Stranddorf: Our ESG principles are central to our approach to innovation and business practices. Our focus on sustainability and responsible operations benefits manufacturers and consumers in the confectionery sector.

For manufacturers, our Responsible Sourcing Programme ensures that raw materials align with ethical and sustainable practices, adhering to the UN Global Compact principles. This provides confidence in the integrity of their supply chains while meeting growing regulatory and consumer demands for transparency.

Our focus on environmental stewardship includes initiatives to reduce CO2 emissions and energy consumption across operations. For example, Denmark’s planned 52-hectare solar plant will support sustainable production practices. By offering ingredients designed to optimize production efficiency and reduce waste, we help manufacturers meet their sustainability goals while remaining cost-competitive.

For consumers, these initiatives mean access to chocolate products made with responsibly sourced ingredients and a lower environmental impact. Our emphasis on ethical labor practices, sustainability, and resource efficiency resonates with increasingly conscious consumers seeking products that align with their values. This dual focus allows manufacturers to differentiate their brands and build trust with eco-conscious and socially aware audiences.

How do your solutions help balance affordability and the demand for high-quality products?
Stranddorf: The rising cost of cocoa and other raw materials has created significant pressure on chocolate manufacturers to balance affordability and quality. Leveraging over a century of expertise in emulsifiers and stabilizers, we address this dual challenge by offering solutions that enable the reduction of cocoa butter, effectively lowering production costs while maintaining the creamy texture and rich flavor that define high-quality chocolate.

Our understanding of chocolate rheology and flow properties allows us to optimize formulations, ensuring consistent texture and taste while reducing reliance on expensive raw materials. Additionally, our products ensure manufacturing consistency, reduce waste, and enhance production efficiency, helping manufacturers remain competitive even in a volatile market.

Through collaboration with manufacturers at our global application centers, we provide tailored solutions that enhance product stability and production efficiency. This partnership approach ensures manufacturers can meet consumer expectations for premium chocolate products without compromising affordability or excellence.

What is the next big challenge or opportunity in chocolate manufacturing?
Stranddorf: The chocolate industry faces an array of emerging challenges, including supply chain transparency, rising raw material costs, and growing consumer expectations for ethical and sustainable practices.

At the same time, these challenges create opportunities for innovation. Advances in ingredient technology, such as our next-generation emulsifiers, can drive efficiencies and open doors to new product categories like functional chocolates and hybrid products blending health and indulgence.

Another critical area of focus is the circular economy, wher sustainable sourcing and waste reduction become integral to manufacturing. As consumer preferences and environmental pressures converge, manufacturers that invest in cutting-edge solutions will be best positioned to lead the industry into the future.

Palsgaard’s efforts to innovate while addressing sustainability and cost challenges demonstrate its role as a critical partner in navigating the future of chocolate manufacturing.