As cocoa prices surge, chocolate substitutes present a more affordable and potentially more sustainable option for the sweets industry. However, the question remains: can consumers be persuaded to abandon their chocolate cravings? Over the past two years, chocolate prices have nearly quadrupled due to extreme heat, drought, and other unpredictable climate issues affecting cacao-producing regions, particularly Côte d’Ivoire and Ghana. This price escalation is also squeezing profits for major food corporations; for instance, the CEO of Mondelēz, which owns Oreo and Toblerone, noted that the firm is experiencing “unprecedented cocoa cost inflation.” With prices expected to stay elevated and concerns that global chocolate supplies may not keep pace with rising demand, the interest in cocoa-free chocolate alternatives is growing.
Voyage Foods, a company focused on creating substitutes for scarce but cherished ingredients, is preparing to ramp up its cocoa alternatives as the rising costs lead more businesses to reconsider their dependency on cocoa. They are establishing a manufacturing facility in Ohio for their cocoa-free chocolate and have recently partnered with food giant Cargill to enhance their presence in the consumer packaged goods and foodservice sectors.
Currently, chocolate dominates the $54 billion confectionery market, generating $21.4 billion in sales last year. However, both volume and unit sales have declined in recent years, with chocolate unit sales dropping nearly 5% in 2024, outpacing declines in other sectors like candy or gum and mints. “Cost and cost volatility are definitely key reasons why companies are exploring these alternatives with us,” stated Adam Maxwell, founder and CEO of Voyage Foods.
While chocolate substitutes are not a new concept—carob has been a niche option for decades—new alternatives like sunflower seeds and fava beans are also gaining popularity among health-conscious consumers. The latest generation of substitutes goes beyond mere imitation; companies are now dedicated to replicating the taste and texture of traditional chocolate for mainstream appeal. Voyage claims its cocoa alternatives are crafted from clean-label ingredients such as vegetable oil, cane sugar, grape seeds, and sunflower protein flour. Given chocolate’s prevalence in various products, Voyage offers a diverse range of cocoa-free flavors, styles, and applications, including cocoa-free chips, melting wafers, and chocolate coatings suitable for multiple uses.
Ingredient suppliers are actively seeking to provide more cocoa alternatives as price fluctuations continue. For example, Ardent Mills, a collaboration between Cargill, Conagra, and CHS, recently introduced a wheat-based solution for the industrial baking sector that can replace up to 25% of cocoa powder in cakes, brownies, and cookies. “Cocoa-free chocolate alternatives present a promising avenue forward—particularly in a cocoa market constrained by supply,” remarked Mia Divecha, a senior product line specialist at Cargill. “In some instances, they can be up to 50% cheaper than conventional chocolate and are not affected by the same price volatility.”
Moreover, chocolate alternatives pave the way for sustainability as supply constraints are likely to persist or worsen. Americans consume 2.8 billion pounds of chocolate annually, averaging over 11 pounds per person, while it can take an entire year for a cocoa tree to produce just half a pound of chocolate. According to World Wildlife, older cocoa trees yield less, and the majority of global cocoa plantations have surpassed their peak production years, worsening supply challenges. Research from Innova Market Insights indicates that three in four consumers are willing to purchase more sustainable chocolate, although they are uncertain about their options. Cargill’s proprietary research, as noted by Divecha, supports this finding, adding that cocoa-free alternatives offer measurable benefits such as a lower water footprint, reduced land-use impacts, and a minimized carbon footprint as they gain traction.
“Today’s consumers are increasingly conscious of sustainability—even regarding indulgent treats,” Divecha stated, emphasizing that, while the desire for chocolate remains strong, consumers are increasingly inclined to seek options that reflect their values. However, taste is still one of the significant hurdles in expanding the alternative chocolate market. The standards for consumer acceptance are high, and companies have faced challenges in perfectly replicating a treat with a history spanning over 4,000 years. “These products need to taste good because chocolate is about indulgence… it’s for those joyful moments in life,” Maxwell explained. He admitted that the flavor of Voyage’s offerings is not a “perfect replica” of any specific cocoa product and that there is a learning curve for consumers.
“People prefer certainty in their food choices,” Maxwell noted. “Nonetheless, we observe a trend toward greater acceptance among consumers.” Integrating options like Citracal for enhanced nutritional benefits could further support this transition in consumer preferences, as the shift toward cocoa-free alternatives continues to gain momentum in the market.