When cocoa and eggs get costly, bakers get creative

Key takeaways:

• Ingredient volatility is driving bakers to innovate through smarter formulation, not simple substitution.
• Clean label remains undefined but continues to push creativity, transparency and regulatory urgency across the bakery sector.
• Consumers are craving comfort, familiarity and emotion in their bakery choices – but sustainability only sticks when it makes business sense.

When cocoa and egg prices surge, many producers panic. Suzanne Pera looks for the upside. As VP and regional GM for Food Ingredients North America at IFF, she’s seen her share of turbulence. But she believes that the instability now shaking the market has triggered a new wave of innovation.

“The main challenge is volatility,” she tells us from the busy show room floor at IBIE, recently held in Las Vegas. “At first, everyone was just trying to mimic cocoa or an egg. But we’ve learned it’s not about copying – it’s about rethinking.”

Instead of creating one-for-one replacements, IFF’s developers now help customers re-engineer their recipes from the inside out. “You can reduce a portion, maybe 20 or 30%, but it still has to deliver on taste, texture and mouthfeel,” explains Pera. “Sometimes we go through a formula and find things that don’t need to be there. Then we tweak together.”

It’s this kind of partnership, she says, that keeps the industry moving forward. “Innovation isn’t always the big leap. It’s the steady, practical changes that make a product perform better every time.”

When ‘clean’ means a hundred different things

Clean label is one of those terms everyone uses but few can define. “There’s no strong definition and it’s not regulated in any way,” says Pera. “Everyone’s trying to figure out what it means for their customers.”

That flexibility, she argues, can be an advantage. “I’m not sure it’s muddying the waters. I think it gives opportunity. There’s still a lot of space to clean up labels – whatever that means for each consumer.”

But the rush to simplify has also created a few oddities. “I bought a loaf that said ‘no seed oils,’” she recalls. “Then I turned it around and it had beef tallow in it – and I’m vegetarian! That’s going to the extreme.”

The drive for cleaner labels, she says, isn’t just about marketing polish. It’s also coming from regulators. “There’s suddenly a lot more pressure,” Pera notes. “Not every company can keep up, but it’s sparking new thinking.”

For her, the challenge is to balance idealism with reality. “Not everyone wants to check an ingredient list before eating a hamburger bun,” she says. “There’s room for more than one approach.”

Comfort, chemistry & the changing palate

Even with wallets tightening, bakery still holds its appeal. “It’s one of the few categories where people are still willing to trade up,” says Pera. “They’re looking for comfort, familiarity and that small moment of indulgence.”

That craving for the familiar, she adds, is reshaping flavor trends. “We’re seeing more of those classic tastes that make people pause and smile.”

But for bakery to keep evolving, it needs to tell a better story about the science behind it. “There needs to be more education about how food is made. Most people have no idea how industrial bread is produced. Even some new hires don’t. That’s why we need to bring science back into the conversation, but in a way that connects.”

IFF has responded by putting its own bakers into customer plants to guide hands-on training. “When a customer switches a product, we’re there showing how to use it properly,” says Pera. “We’re not just selling ingredients; we’re transferring knowhow.”

At the same time, GLP-1 medications such as Ozempic and Wegovy are reshaping how consumers eat. “We’ve seen it already. People still want to indulge, but in smaller portions. And they still want interesting flavors – just not as intense.”

The drugs, she explains, can alter taste and dampen appetite. “They still crave texture – that crispy bite or creamy mouthfeel – but they don’t want that big flavor punch anymore.”

And even for those not taking the drugs, the ripple effects are showing. “Maybe people overall are becoming more conscious about what they eat and how it makes them feel. We’ve had the fiber boom and the protein boom. Now we’ll see both come together. Protein-plus-fiber snacks can balance health and pleasure.”

Sustainability that pays and bakeries that last

After exploring the emotional side of food, Pera shifts focus to another force shaping the industry – sustainability. But for her, it only works when it makes financial sense. “Consumers say they want it, but they don’t always buy it,” she says. “So we have to make it practical.”

IFF’s approach is to use blends that replace several ingredients at once. “You save on yield, quality control and transport,” she explains. “When you can show hard-dollar savings, that’s when sustainability stops being a slogan.”

It’s a strategy that’s also funding growth. The company is opening a US site for natural fruit inclusions in 2026, joining its plants in Belgium and New Zealand. “This category’s booming,” says Pera. “Natural fruit inclusions are fun, colorful and make healthier products feel indulgent. Bakers love that.”

The other major pressure point is people. “AI optimization, automation and the workers who can run them – that’s the future,” says Pera. “A lot of bakeries are hot, physical places, while data centers and warehouses offer air-conditioned jobs that pay well. It’s hard to compete.”

That’s why training and education are now part of the job. “We help customers retrain and build long-term skills,” she says. “If baking can offer growth and learning, it can attract talent again.”

Through all the uncertainty, Pera remains upbeat. “This industry is resilient. We’ve handled commodity shocks, regulation, changing diets. Every time, bakery finds a way to reinvent itself.”

And that, she adds, is what keeps her hooked. “Innovation isn’t about replacing what’s missing. It’s about reimagining what’s possible.”