White chocolate is a confection of sugar, cocoa butter, and milk solids. The melting point of cocoa butter is high enough to keep white chocolate solid at room temperature, yet low enough to allow white chocolate to melt in the mouth. White chocolate first appeared in Switzerland in the 1930s.

It was invented by Nestlé to use excess cocoa butter. It was first popularly distributed in America in 1948 with the introduction of Nestlé's Alpine White Chocolate bar, which contained white chocolate and almonds. White chocolate is made of cocoa butter, milk, and sugar.

Most often, the cocoa butter is deodorized to remove its strong and undesirable taste that would negatively impact the flavor of the finished chocolate. Regulations also govern what may be marketed as "white chocolate": In the United States, since 2004, white chocolate must be at least 20% cocoa butter (by weight), at least 14% total milk solids, at least 3.5% milk fat, and less than 63% sugar or other sweeteners. Before this date, U.S. firms required temporary marketing permits to sell white chocolate.

The European Union has adopted the same standards, except that there is no limit on sugar or sweeteners. Although white chocolate is made the same way as milk chocolate and dark chocolate, the ingredients are different. Because of the ingredients, many people (including the U.S. Food and Drug Administration) do not consider "white chocolate" to be chocolate at all, but in most cases, it does contain cocoa butter: a product that, like many cocoa solids, is derived from the cacao bean.

However, some preparations (known as confectioner's coating or summer coating) are made from inexpensive solid or hydrogenated vegetable and animal fats, and as such, is not at all derived from cocoa. These preparations may actually be white in color (in contrast to white chocolate's ivory shade) and will lack cocoa butter's flavor.

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