Choconomics

High cocoa prices have triggered a wave of “reformulations” — the industry’s polite term for recipe changes across the U.S. chocolate market. The familiar “milk chocolate” label (a term regulated by the FDA) is quietly being replaced by the more flexible “chocolate candy.”

Over the last decade, climate change has added six extra weeks of extreme heat every year to most West African cocoa-growing regions. The result? Declining yields and rising prices. Major players like Nestlé have saved more than $500 million by adjusting recipes in response to the cocoa and coffee price surge.

To cut costs, companies are swapping cocoa butter for vegetable fats, using compound coatings, and adding emulsifiers like E476 (polyglycerol polyricinoleate) to stretch limited cocoa supplies. Others are bulking up bars with sugar or chunky add-ins or even switching to cheaper beans and different manufacturers.

Chocolate Standards: A Global Contrast

Source: Surbhi Bhatia

• U.S. (FDA): Milk chocolate must contain at least 10% cocoa solids.
• Europe: The bar is higher — 35% cocoa solids minimum.
• India: Surprisingly low — just 2.5% cocoa solids, per FSSAI standards.

FSSAI's requirements for various types of chocolate. Source - FSSAI website, Myth Buster

Types of chocolate as defined by the Food Safety and Standards Authority of India (FSSAI): 

1. Milk Chocolate - A standard chocolate made with cocoa (like cocoa mass or cocoa powder), sugar and milk solids (which includes milk fat and cocoa butter). 
2. Milk Covering Chocolate - Same as milk chocolate, but specifically suitable for coating other foods (like centers or inclusions). 
3. Plain Chocolate - Chocolate made with cocoa ingredients and sugar, without milk. If it’s dark chocolate, it must have at least 35 % total cocoa solids (with specified minimums for cocoa butter and non-fat cocoa solids).  
4. Plain Covering Chocolate - Like plain chocolate, but suitable for coating purposes. 
5. Blended Chocolate - A mix of milk chocolate and plain chocolate in varying amounts. 
6. White Chocolate - Made from cocoa butter, milk solids (including milk fat) and sugar — no cocoa solids. 
7. Filled Chocolate - Chocolate with a distinct center (filling) that’s different from the outer chocolate coating — e.g., nougat or caramel fillings. The chocolate coating must meet the definition of a chocolate type above, and should be at least 25 % of the product weight. 
8. Composite Chocolate - Chocolate that contains at least 60 % chocolate by weight and at least 10 % of wholesome edible substances such as nuts, fruits or raisins. 
9. Praline - A single bite-sized chocolate product where chocolate is at least 25 % of the weight. It can be a filled chocolate or combine other chocolate types. 
10. Couverture Chocolate - High-quality chocolate with at least 35 % cocoa solids, of which 31 % must be cocoa butter and 2.5 % must be fat-free cocoa solids — typically used by professional chocolatiers for coating and dipping.

FSSAI mandates that in case of chocolate which contain vegetable fats other than cocoa butter, it shall have the following label declaration in bold: “CONTAINS VEGETABLE FAT IN ADDITION TO COCOA BUTTER”. The ingredients and nutrition details are printed in such small print that it may be difficult to identify if Vegetable Fat is being used without any declaration.

Cacao has deep roots — first domesticated by the Olmecs in ancient Mexico thousands of years ago. 

Today, the “Big Five” (Hershey, Mondelez, Mars, Nestlé, and Ferrero) dominate the global chocolate industry, sourcing most of their beans from West Africa. Cacao grows only within 20° of the Equator, a narrow band that includes parts of southern India.

Southern Indian states are cultivating distinct cacao varieties with unique flavour profiles, fueling the rise of domestic premium chocolate brands.

Cacao is naturally rich in nutrients — a potential superfood when processed right. But it’s the mix of ingredients and craftsmanship that determines whether a bar nourishes you or merely indulges your sweet tooth.