Chocolate ingredients, production, and trends are in transition. Call it Chocolate 2.0.
The driving force behind Chocolate 2.0 aligns with consumer trends toward functional foods and healthy eating. “Consumers are now looking for really niche products that can kill two birds with one stone, so to speak,” said Renee Lee Wege, Trendologist and Senior Publications Manager at Datassential, in a December 2025 IFT article. “They want to get energy and sustenance and solve for more personalized needs.”
Brands are all in on chocolate flavors in active nutrition snack bars and supplements. “Look at what’s trending on the flavor side. It’s not just vanilla and chocolate,” said Devon McDonald, Food Scientist at Cargill, in a 2025 report on active nutrition and sugar reduction. “Nutrition bars now feature dessert flavors like fudgy brownie or cupcake, and there are partnerships with candy companies. Active nutrition bars may be packed with a ton of protein, but they still taste good!”
The race is on among brands to accelerate digital investments for reformulation and product development while focusing on increased plant throughput by improving operator tools and advancing overall smart manufacturing maturity, including Hershey’s digital initiatives.
Product development in the chocolate 2.0 era
Zürich-based Barry Callebaut announced in October 2025 that it was partnering with NotCo AI to accelerate product development and address the significant challenges in the chocolate industry, including climate change, ingredient shortages, and rising cocoa costs.
“By combining our deep chocolate expertise and global reach with NotCo’s advanced AI capabilities, we’re aiming to unlock speed for breakthrough recipe solutions—from health-forward formulations to functional ingredients and Nutri-Score-friendly options,” says Peter Feld, CEO at Barry Callebaut.
Barry Callebaut is using AI empowered with the company's own data and insights to support product development.EThamPhoto via Getty Images
AI-based product development tools can even connect to product lifecycle management (PLM) platforms to run simulations at specific plants. This data foundation paves the way for AI-based platforms not only to accelerate product development but also to find innovative ways to mine previous recipes and adapt them for today’s market.
Companies like FoodChain ID or the Institute of Food Technology are just a few companies employing AI platforms for reformulation and product development.
NotCo's AI partnership with Barry Callebaut is different and leverages the company’s experience in developing cocoa alternatives. Through its AI platform, Giuseppe, the company says it recently “developed a groundbreaking formulation using ingredients like fermented cereals and seeds” to replicate traditional chocolate.
In addition to brands, suppliers are adjusting too. Ingredient suppliers are expanding plants to meet demand for chocolate ingredient substitutions. Cargill invested in a 2022 plant expansion at its Deventer facility in the Netherlands, dedicated to the production of coatings and fillings for chocolate products.
In 2024, the plant was finished, and throughput has doubled for melting fats, cocoa powders and sugar replacers.
“At Deventer, we’ve always had the capabilities to work with an incredibly large range of fats, oils, and blends to offer a wealth of options for our customers,” says Winnie Schouten, Cargill Plant Manager at Deventer.
The plant expansion targets non-standard powders and flavors, including Nextcoa, an alternative to cocoa. This alternative to chocolate is made with grape seeds and sunflower and was developed together with Voyage Foods. In addition, the upgraded Deventer facility can now produce compound solutions requiring a "no nuts” claim.
Hershey searches for plant data visibility
At the recent Connected Worker Manufacturing Conference in Chicago, Chad Brownell, Senior Manager of Manufacturing Technology and Digital Transformation at Hershey, discussed the current frontline workforce initiative that integrates plant-floor platforms, drives real-time visibility, and eliminates operational silos at the chocolate company.
Hershey chose Augmentir’s connected worker platform that provides training management, digital work instructions, collaboration tools, knowledge management and augmented reality technology. The platform is currently being piloted at three Hershey plants, including one in Mexico and two in the U.S. The Mexico plant is one of Hershey’s biggest plants.
Connected worker platforms like the one being piloted at Hershey can help to increase operational transparency and efficiency.Monty Rakusen via Getty Images
The current workforce initiative includes several overall objectives, such as connecting operators to real-time machine data and reducing the number of logins across multiple platforms.
Hershey sees this as a digital transformation project and is taking all steps to get it right. “We had to step back and take a look at the foundational pieces for a digital transformation as a whole,” said Brownell. “So digital fluency becomes more and more critical for the workforce, system integrations, and more discipline about data governance and standards.”
One of the first steps in the connected worker journey was workshops across our facilities. “We started with our lean processes but went across our facilities to understand where those operational pain points were,” says Bronwell. “We used those to form the criteria as we went to evolve the connected worker solutions.”
Pain points included a heavy reliance on paper-based processes, operational integration issues, forcing operators to use multiple systems, and a lack of real-time visibility to make decisions on the plant floor.
While the ROI on this digital transformation is a driver, Hershey understands that getting a digital foundation is essential for higher throughput and retaining workers. “We are approaching this initiative as a value-driven solution,” says Brownell. “We're going to have the traditional metrics around OEE waste and efficiencies, but we also want to measure adoption, the process, and usability.”
The era of Chocolate 2.0 is here, and investments from manufacturers and suppliers should make this an exciting segment to watch.
