Cacao and cocoa powder both come from the same source, which is the beans of the cacao tree. However, these two refer to different products that have undergone different processes. Cocoa powder is made by grinding roasted cacao beans into a fine powder, from which most of the cocoa butter has been removed. Cocoa powder is often used in baking and is the primary ingredient in chocolate products. Cacao powder is made from raw cacao beans that have been cold-pressed to remove cocoa butter. Cacao powder is not processed with high heat like cocoa powder, it retains more of its natural nutrients, including antioxidants and minerals such as magnesium and iron. It is perfect for smoothies, ice cream, and other raw preparations.