Chocolate manufacturers are increasingly turning to cocoa alternatives as market turbulence pushes prices higher and supply risks persist. Recent reforms in major cocoa-producing regions, along with poor crop yields in Ghana and Cote d’Ivoire, have contributed to a volatile market. After surging above $12,000 per ton at the end of last year, cocoa futures have fallen more than 50% in 2025, though retail prices remain elevated, with chocolate climbing 30% year-on-year to October.
Businesses are feeling the pressure. Mondelez International, maker of Cadbury, Milka, and Toblerone, flagged “volatility of cocoa” and its “ability to effectively hedge against” costs as a risk to meeting financial targets. Smaller manufacturers, with less flexibility in futures contracts, face higher exposure to market swings, prompting shifts in ingredient strategies.
Some companies have already made notable changes. Pladis altered the composition of McVitie’s Club and Penguin bars, which now must be labeled “chocolate flavored” after reducing cocoa content. Startups like Foreverland and Planet A Foods are capitalizing on the trend, producing chocolate-like products using carob, chickpeas, pumpkin seeds, and sunflower seeds. Massimo Sabatini, Foreverland CEO, says the shift could make pure chocolate a “luxury product” while alternatives dominate mainstream applications.
The move is driven not only by cost management but also by sustainability and ethical sourcing concerns. Chocolate alternatives are being adopted in coatings, fillings, baked goods, and snacks, offering a solution to pressures on the cocoa supply chain. Natasha Linhart of Atlante notes that brands are “diluting cocoa by shifting their mix towards ‘filled’ products,” maintaining indulgence while reducing risk.
Despite easing futures prices, market “PTSD” persists, according to ICAP broker Drew Geraghty, who explained that past extreme costs for cocoa and cocoa butter encourage manufacturers to continue using substitutes where possible. Industry experts predict that while traditional chocolate remains central for bars due to taste expectations, hybrid and cocoa-free products will continue gaining ground in global confectionery markets.
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