Taiwan's premium chocolate makers earn global recognition but climate change threatens growth

East Asia

In the second of a three-part series on Taiwan beyond semiconductors, CNA explores how the island’s emerging premium chocolate industry is balancing global success with growing climate pressures.

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08 Jul 2026 03:24PM

PINGTUNG COUNTY, Taiwan: Taiwan's chocolate makers are gaining global recognition for their premium tree-to-bar chocolates, but the tropical climate that helped the industry flourish is becoming one of its biggest challenges as extreme weather threatens future harvests.

Pingtung county, in southern Taiwan, is the heart of the island's chocolate industry. Sometimes called the "North Pole of cacao", it sits on the northern edge of the global cacao belt – where warm and humid conditions allow cacao trees to thrive.

Farmers say the weather conditions in Pingtung give Taiwanese cacao its distinctive bright and fruity flavour.

FROM BETEL TO BEANS

Taiwan was not traditionally known for growing cacao. The crop is more commonly associated with Africa, Latin America and Southeast Asia.

That changed in the early 2000s, when farmers were encouraged to diversify away from betel nut cultivation because of health concerns.

Some switched to cacao, laying the foundations for what has become a growing chocolate industry.

“The main reason was really to help solve a problem facing local agriculture,” said Warren Hsu, founder of Taiwanese chocolate maker Fu Wan Chocolate.

“I used to be a head chef and I always tried to cook with local ingredients,” he added.

“One day, a farmer brought me some fresh cacao pods and told me they had cacao fruit, but they didn't know how to process it, how to turn it into chocolate or even who to sell it to.”

That encounter inspired Hsu to establish Fu Wan Chocolate in 2015, one of Taiwan's best-known tree-to-bar chocolate brands.

“Taiwan's cacao beans don't have a major advantage when it comes to flavour,” he said.

“There are many established cacao-growing regions around the world, each with its own distinctive taste. That's why we have to rely on the fermentation process to create unique flavours and bring out the characteristics of Taiwan's terroir.”

CRAFTING PREMIUM CHOCOLATE

Taiwan's chocolate industry remains small, but it is growing quickly.

Cacao production has risen more than sevenfold over the past decade to around 630 tonnes a year.

Pingtung is now home to over 100 cacao farmers and a growing number of chocolate makers.

But production remains largely small-scale, with much of the chocolate-making process done by hand, keeping costs high.

“The biggest challenge is convincing consumers in Taiwan and around the world that our chocolate is worth the price,” said Hsu.

“Our production costs are among the highest in the world, and our cacao beans are among the most expensive.”

To compete, Taiwanese producers have positioned themselves in the premium artisanal market.

Fu Wan Chocolate, which has won more than 300 international awards, exports to Japan, Europe and the United States.

Other boutique brands such as Yu Chocolatier and Q Sweet are also carving out a niche. Many use local fruits, tea and specialised fermentation techniques to create flavours unique to Taiwan.

Consumers say those distinctive tastes have helped Taiwanese chocolate carve out its own niche.

"I think Taiwanese chocolate stands out because the flavour isn't too rich or overwhelming," said resident David Wang.

Another resident, Peter Chu, said: “It has a slight bitterness to it, but it doesn't overpower the chocolate's sweetness. The sweetness still comes through more, and I find it enjoyable. The outer layer also has a nice crunch when you bite into it.”

CLIMATE PRESSURES

But the same climate that has supported Taiwan's cacao industry is becoming less predictable.

Growers say rising temperatures, heavier rainfall, prolonged droughts and stronger typhoons are affecting cacao production.

“In recent years, we've seen higher temperatures, high humidity, heavy rainfall and even periods of drought,” said Chuang Yueh-Feng, a division director at the Ministry of Agriculture.

“Cacao does need this kind of tropical climate, but typhoons and strong winds can affect its growth,” he added.

“Over the past two years, typhoons in July and August have damaged cacao trees, affecting their growth and, in turn, reducing both yields and quality.”

Farmers and policymakers are adapting to help the industry withstand the changing climate.

“We've adjusted our policies to allow farmers to keep some betel nut trees during the early stages of cacao cultivation,” said Chuang.

“The trees provide natural support and shade, helping protect young cacao plants. It's about adapting farming practices to local conditions and helping farmers adjust to a changing environment.”

Source: CNA/ca(mp)