Christopher Columbus encountered the cacao bean on his fourth mission to the Americas on August 15, 1502, when he and his crew seized a large native canoe that proved to contain among other goods for trade, cacao beans. His son Ferdinand commented that the natives greatly valued the beans, which he termed almonds, "for when they were brought on board ship together with their goods, I observed that when any of these almonds fell, they all stooped to pick it up, as if an eye had fallen."

Spanish conquistador Hernán Cortés may have been the first European to encounter chocolate when he observed it in the court of Montezuma in 1519. In 1568, Bernal Díaz, who accompanied Cortés in the conquest of Mexico.

The new craze for chocolate brought with it a thriving slave market, as between the early 17th and late 19th centuries the laborious and slow processing of the cacao bean was manual. Cacao plantations spread, as the English, Dutch, and French colonized and planted. With the depletion of Mesoamerican workers, largely to disease, cocoa beans production was often the work of poor wage laborers and African slaves.

1729 - The first mechanic cocoa grinder was invented in Bristol, UK. Walter Churchman petitions king of England for patent and sole use of an invention for the “expeditious, fine and clean making of chocolate by an engine.” The patent was granted by His Majesty King George II to Walter Churchman for a water engine used to make chocolate. Churchman probably used water-powered edge runners for preparing cacao beans by crushing on a far larger scale than previously. The patent for a chocolate refining process was later bought by J. S. Fry & Sons in 1761.

Wind-powered and horse-drawn mills were used to speed production, augmenting human labor. Heating the working areas of the table-mill, an innovation that emerged in France in 1732, also assisted in extraction. The Chocolaterie Lombart, created in 1760, claimed to be the first chocolate company in France, ten years before Pelletier et Pelletier.

New processes that speed the production of chocolate emerged early in the Industrial Revolution. In 1815, Dutch chemist Coenraad van Houten introduced alkaline salts to chocolate, which reduced its bitterness.

In 1828, Coenraad van Houten created a press to remove about half the natural fat (cacao butter) from chocolate liquor, which made chocolate both cheaper to produce and more consistent in quality. This innovation introduced the modern era of chocolate.

Lindt & Sprüngli AG, a Swiss-based concern with global reach, had its start in 1845 as the Sprüngli family confectionery shop in Zurich that added a solid-chocolate factory the same year the process for making solid chocolate was developed and later bought Lindt's factory. Besides Nestlé, several chocolate companies had their start in the late 19th and early 20th centuries.

Known as "Dutch cocoa", this machine-pressed chocolate was instrumental in the transformation of chocolate to its solid form when in 1847 Joseph Fry learned to make chocolate moldable by adding back melted cacao butter.

Cadbury was manufacturing boxed chocolates in England by 1868.

Milk had sometimes been used as an addition to chocolate beverages since the mid-17th century, but in 1875 Daniel Peter invented milk chocolate by mixing powdered milk developed by Henri Nestlé with the liquor.

In 1879, the texture and taste of chocolate were further improved when Rodolphe Lindt invented the conching machine.

In 1893, Milton S. Hershey purchased chocolate processing equipment at the World's Columbian Exposition in Chicago and soon began the career of Hershey's chocolates with chocolate-coated caramels.

Ceramic vessel with residues from the preparation of chocolate beverages has been found at archaeological sites dating back to the Early Formative (1900–900 BC) period. For example, one such vessel found at an Olmec archaeological site on the Gulf Coast of Veracruz, Mexico dates chocolate's preparation by pre-Olmec peoples as early as 1750 BC.

Evidence suggests that it may have been fermented and served as an alcoholic beverage as early as 1400 BC.