California Cultured, a plant cell culture company, is growing cocoa from cell cultures at a facility in West Sacramento, California, with plans to start selling its products next year. It puts cocoa bean cells in a vat with sugar water so they reproduce quickly and reach maturity in a week rather than the six to eight months a traditional harvest takes, said Alan Perlstein, the company’s chief executive. The process also no longer requires as much water or arduous labor.

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The market for chocolate is massive with sales in the United States surpassing $25 billion in 2023, according to the National Confectioners Association. Many entrepreneurs are betting on demand growing faster than the supply of cocoa. Companies are looking at either bolstering the supply with cell-based cocoa or offering alternatives made from products ranging from oats to carob that are roasted and flavored to produce a chocolatey taste for chips or filling.

The price of cocoa soared earlier this year because of demand and troubles with the crop in West Africa due to plant disease and changes in weather. The region produces the bulk of the world’s cocoa.

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Planet A Foods in Planegg, Germany, contends the taste of mass market chocolate is derived largely from the fermentation and roasting in making it, not the cocoa bean itself. The company’s founders tested out ingredients ranging from olives to seaweed and settled on a mix of oats and sunflower seeds as the best tasting chocolate alternative, said Jessica Karch, a company spokesperson. They called it “ChoViva” and it can be subbed into baked goods, she said.

“The idea is not to replace the high quality, 80% dark chocolate, but really to have a lot of different products in the mass market,” Karch said.

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Yet while some are seeking to create alternative cocoa sources and substitutes, others are trying to bolster the supply of cocoa where it naturally grows. Mars, which makes M&Ms and Snickers, has a research facility at University of California, Davis aimed at making cocoa plants more resilient, said Joanna Hwu, the company’s senior director of cocoa plant science. The facility hosts a living collection of cocoa trees so scientists can study what makes them disease-resistant to help farmers in producing countries and ensure a stable supply of beans.

“We see it as an opportunity, and our responsibility,” Hwu said.

In Israel, efforts to expand the supply of cocoa are also under way. Celleste Bio is taking cocoa bean cells and growing them indoors to produce cocoa powder and cocoa butter, said co-founder Hanne Volpin. In a few years, the company expects to be able to produce cocoa regardless of the impact of climate change and disease — an effort that has drawn interest from Mondelez, the maker of Cadbury chocolate.