What is 'chocflation' and why are cocoa prices so high?

'Chocflation' refers to rising chocolate prices, driven by increased cocoa costs due to climate change-induced droughts affecting West African crops.

How does PreferChoc create a cocoa flavor without cocoa beans?

PreferChoc is made by fermenting and roasting seeds and grains, creating flavor compounds similar to traditional cocoa.

When will PreferChoc be available commercially?

The company, Prefer, expects to launch PreferChoc commercially in 2026.

Home / Business and Economy / Cocoa Crisis: Lab-Grown Flavor Offers Sweet Relief

Cocoa Crisis: Lab-Grown Flavor Offers Sweet Relief

21 Jan

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Summary

Cocoa prices hit an all-time high due to climate-related crop failures.
A new food-tech company is creating cocoa powder from seeds and grains.
This cocoa-free alternative could significantly reduce chocolate production costs.

Cocoa Crisis: Lab-Grown Flavor Offers Sweet Relief

Global "chocflation" has left consumers with a bitter taste as cocoa prices, driven by climate-induced droughts in West Africa, reached an all-time high in 2024. Although prices have since fallen, they remain elevated. Singapore-based startup Prefer is offering a sweet solution with PreferChoc, a cocoa-free flavor made from fermented and roasted seeds and grains. This innovation, co-founded by Jake Berber and Ding Jie Tan in 2022, bypasses the need for traditional cocoa beans.

PreferChoc is designed to be blended into chocolate products, potentially reducing manufacturers' cocoa powder costs by up to 50%. Berber anticipates strong market receptivity, especially from price-sensitive consumers, noting that up to 50% inclusion of PreferChoc in hybrid products does not alter the flavor. The company's coffee substitute, launched in 2025 and available in Singapore, Vietnam, and the Philippines, has already demonstrated significant cost reductions for businesses.