Ingredient markets: Surviving the roller coaster ride

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Ingredient markets: Surviving the roller coaster ride

31 Mar 2026

Mari Rydings

Mari Rydings is a versatile content creator, editor and marketer with experience developing dynamic, results-driven materials for B2B and B2C audiences. As the editorial director for Avant Food Media, she leads the day-to-day editorial operations for the company’s print and digital magazines, newsletters and social media platforms. Outside of work, she loves reading, hiking, putting together jigsaw puzzles and spending time with her husband and their twin daughters.

KANSAS CITY, MO — The commodities market is a fickle thing, subject to the unpredictable whims of everything from the weather to politics to consumer preferences. Fluctuations in pricing and supply are a constant source of frustration for commercial bakers, especially when they impact two staple ingredients: eggs and cocoa.

Egg replacers and cocoa alternatives can help relieve the pressure and provide benefits beyond price and supply stability. When substituting ingredients, whether temporarily or permanently, it’s essential to consider how the change might impact the entire operation, including labeling.

“When replacing any volatile ingredient, you have to think about whether you absolutely must replace 100 percent of it,” said Erin Surratt, senior director of research, development and applications at Corbion. “You usually need to use a combination of ingredients to replace the volatile ingredient, and that will impact a label declaration.”

That’s especially true of egg replacers. With cocoa, there’s a bit of flexibility. Bakers can adjust usage levels as a short-term solution vs. having to engage in a full reformulation. Small reductions in cocoa content — 1% to 2% — aren’t likely to affect product performance.

“If cocoa percentages aren’t listed on the packaging, it’s much easier to adjust the content quietly,” said Kerry Groves, senior R&D manager, chocolate and compound at Puratos USA. “If percentages are listed, communication becomes important. Bakers must make sure any change works with their labeling and customer expectations.”

Often, the challenges of using cocoa alternatives come down to labeling and sensory experience.

“While compounds and cocoa replacers can get close, they don’t match chocolate perfectly, especially in flavor and color,” Groves added. “Some replacers also introduce extra allergens or longer ingredient lists, so bakers need to consider how that fits their brand and customer base.”

The intangible ROI of alternative ingredients

When deciding how to navigate a volatile ingredient market, bakers must factor in short- vs. long-term ROI. It’s not always just about the number on the bottom line today. Finished product quality, consumer acceptance and increased product development flexibility can each play an intangible financial role.

“When formulating with egg replacers, you typically use a smaller quantity than you would with real egg, and they have a longer shelf life,” said Samantha Meyers, product development and application manager with Manildra USA. “Think about that with liquid eggs. They expire and you have to discard them, whereas wheat protein and other egg replacers have a two-year shelf life, so you’re reducing cost over time.”

Egg replacers also have the potential to minimize the risk of allergen cross-contamination on the production floor and reduce downtime related to equipment cleaning and changeover.

Another potential cost-saving benefit is the flexibility that egg replacers can offer R&D. Because each replacer functions differently, blends are typically used to achieve full egg functionality. Using more than one egg replacer means bakers can dial in specific characteristics by adjusting the levels.

“Say you want to increase just the texture in a product,” Surratt said. “If you’re using egg, you get all the functional characteristics of an egg, which means you must increase all of them, even if you just want to increase texture. Alternative proteins, starches, gums and emulsifiers allow bakers to adjust different levels of specific components to achieve the one function they’re after. Sometimes, egg replacers can give bakers a broader toolbox to work with.”

Long-term ROI when using real cocoa and eggs

At the same time, for bakers committed to using real eggs and cocoa, the ROI can be just as beneficial to the bottom line.

“Cost management doesn’t have to mean compromise,” said Nate Hedtke, VP of innovation and customer engagement at American Egg Board. “From an ROI standpoint, real eggs deliver consistency in production and performance, built-in nutritional value and simpler labels, and claims that customers understand and trust. Each of those results in quality, which drives repeat purchase. That’s a long-term ROI that outweighs possible short-term savings.”

The same argument can be made for formulating with real cocoa, even during a turbulent market.

“For many consumers, ‘real chocolate’ still carries a very different meaning from cocoa alternatives,” said Cristian Chu Salgado, VP of strategy and growth at Luker Chocolate. “Formulating with real, sustainably sourced chocolate can deliver a higher ingredient cost, but it also under pins repeat purchase, loyalty and the ability to premiumize — all of which matter more over time.”

Whether bakers choose egg replacers, cocoa alternatives, real ingredients or a blend of both to help them survive the ingredient market roller coaster, one thing is certain: They have viable options that provide opportunity for innovation.

For more on solving the product development challenges that can stem from ingredient market volatility, read “In Flux in the Lab” in the April | Q2 2026 issue of Commercial Baking.

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