Cocoa powder and cocoa butter: Two sides of the same bean

When talking about cocoa as a raw material, many people immediately think of either cocoa powder or cocoa butter, depending on the needs of the end product. But the two are inextricably intertwined.

Cocoa beans consist of both fat and cocoa mass, and when the bean is processed, both cocoa butter and cocoa powder are extracted. The two fractions are produced in the same process and should ideally be sold in roughly equal quantities. Otherwise, an imbalance in the market will arise, which can particularly affect the availability of cocoa powder.

Substitution in one place can create scarcity in another

It is possible to replace cocoa butter with other fats.

In times of uncertainty, some manufacturers choose to adjust their recipes and find alternatives to cocoa butter, often to reduce their dependence on a raw material that is expected to rise in price.

But cocoa butter and cocoa powder are connected. When less cocoa butter is sold, cocoa powder production falls accordingly. This can lead to a shortage of cocoa powder, even when demand is high.

In everyday life, this connection is not always obvious. However, to avoid supply problems, it is important to understand the mechanisms and stay ahead of the curve when it comes to purchasing.

Put cocoa powder on the agenda before it becomes urgent

Knowledge of the link between cocoa butter and cocoa powder is essential for assessing availability and planning supply. It is not just about price, but about overall security of supply and timely delivery.

At Procudan, we have insight into the dynamics of the cocoa market and collaborate with experienced partners throughout the supply chain. We follow developments closely and see how even minor shifts between the production and demand can have noticeable consequences.

It is also important to understand how external factors such as climate, diseases in growing areas and global demand affect cocoa demand, especially since a large part of the market is concentrated among a few players.

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When the cocoa market tips

In 2024, cocoa reached a historic peak price of over $12,000 per tonne. This was the result of a market imbalance, where production was pressured by low harvests, and the sales of cocoa butter fell, while the demand for cocoa powder remained high.

When cocoa butter is not sold at the same rate as cocoa powder, production slows down – and this directly affects the availability of powder. Price fluctuations like this show how quickly the market can react to small shifts. And why it pays to understand the context in good time.

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By understanding the context and staying ahead of the curve, you can avoid being caught in a supply situation where options are few and expensive.

This is where our knowledge and experience make a difference. We help you ask the right questions and advise you on proactive choices, so you avoid supply problems and ensure continuity of delivery.

If you want to stay ahead of your cocoa needs, have a no obligation chat with us now. Fill in the form and we will contact you. 

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