Barry Callebaut targets Asia expansion, cocoa alternatives to offset record-high prices 

ASIA – Barry Callebaut AG, one of the world’s largest chocolate manufacturers, is intensifying its focus on Asia as part of a broader strategy to reduce reliance on expensive cocoa beans and counter global price volatility.  

Chief Executive Officer Peter Feld highlighted the region, particularly China, as a major growth opportunity during an interview with Bloomberg News. 

Feld noted that chocolate consumption per capita remains low across much of Asia but is poised to grow as disposable incomes increase. To tap into this potential, Barry Callebaut recently opened a research and development center in Singapore and is rolling out new products aimed at capturing emerging demand.  

“Among our key priorities for future growth, Asia is one of the most exciting,” Feld said. 

The strategic shift comes as Western demand for chocolate weakens. Barry Callebaut’s half-year sales fell 7.6% in Western Europe and 2.3% in the United States amid record-high cocoa prices.  

The company raised chocolate prices by as much as 63% to offset higher financing costs tied to securing bean supplies. Even in Asia, cocoa grindings—a key indicator of chocolate demand—have recently softened. 

To mitigate these pressures, Barry Callebaut is expanding its portfolio of “compound” chocolate products, which substitute other fats for cocoa butter.  

Feld said compound products already account for roughly one-third of the company’s business, and without acquiring additional cocoa beans, Barry Callebaut could potentially double its chocolate output through compound solutions alone. 

The company is also researching fermentation-based substitutes capable of replicating cocoa’s taste, a move Feld believes could account for a significant market share within the next decade. Such alternatives not only reduce costs but also improve heat resistance—an advantage in hotter climates across Asia. 

In parallel, Barry Callebaut is reshaping its operations in North America. The company is implementing restructuring plans delayed by tariff uncertainty, including closing some of its 16 factories while adding a new facility in Brantford, Ontario. 

Earlier this month, Barry Callebaut Group and A.P. Moller – Maersk inaugurated a 600,000-square-foot cocoa bean warehouse in Pasir Gudang, Malaysia.  

The facility can store nearly 40,000 metric tons of cocoa beans, reinforcing supply chain resilience for the company’s growing Asia operations. 

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