Listen to the article
As cocoa prices soar, chocolate substitutes offer a cheaper and potentially more sustainable solution for the sweets sector. But can consumers be convinced to give up their chocolate addiction?
Chocolate prices have nearly quadrupled in the last two years with cacao-growing regions, especially Côte d’Ivoire and Ghana, subject to extreme heat, drought and other volatile climate challenges. Escalating prices are also impacting profits at major food companies, with the CEO of Oreo and Toblerone owner Mondelēz, saying the company is seeing “unprecedented cocoa cost inflation.”
With prices predicted to remain high, and the potential that global chocolate supply won’t be able to meet ever-increasing demand, there’s growing buzz around cocoa-free chocolate alternatives.
Voyage Foods, which makes alternatives to scarce yet beloved commodities, is preparing to scale its cocoa substitutes as higher prices push more companies to rethink their reliance on the ingredient. The company is opening an Ohio manufacturing plant for its cocoa-free chocolate, and recently teamed up with food giant Cargill to expand its reach within the CPG and foodservice industries.
Currently, chocolate makes up the largest segment of the $54 billion confectionery industry, accounting for $21.4 billion in sales last year; but volume and unit sales have fallen in recent years. Unit sales for chocolate declined by close to 5% in 2024, far more than sectors including candy or gum and mints.
“One of the reasons that companies are looking at these solutions through us is definitely cost, and cost volatility,” said food scientist Adam Maxwell, founder and CEO of Voyage Foods.
Chocolate substitutes aren’t new; carob, for instance, has been a niche option for decades. Substitutes like sunflower seeds and even fava beans are gaining traction, too, for the health-conscious. But the latest wave of alternatives surpasses imitation; now, companies are focused on recreating the taste and texture for the mainstream.
Voyage says its cocoa alternatives are made with clean-label ingredients including vegetable oil, cane sugar, grape seeds and sunflower protein flour. Because chocolate is in so many products today, Voyage has a range of cocoa-free flavors, styles, and applications including cocoa-free chips, melting wafers, and chocolate coating that can be used in a variety of applications.
Ingredient suppliers have looked to offer more alternatives to cocoa as price volatility persists. Ardent Mills, a joint venture between Cargill, Conagra and CHS, last month released 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 offer a promising path forward – especially in a supply-constrained cocoa market,” said Mia Divecha, senior product line specialist at Cargill. “In some cases, they can be up to 50% cheaper than traditional chocolate and are not subject to the volatility.”
Chocolate alternatives also provide a sustainable path forward as supply constraints are set to persist or even worsen. Americans eat 2.8 billion pounds of chocolate each year, or over 11 pounds per person, while it can take an entire year for a cocoa tree to produce the cocoa in just half a pound of chocolate. According to World Wildlife, older trees also yield less cocoa, and most of the world’s cocoa plantations are well past their peak production years, exacerbating supply issues.
Research from Innova Market Insights has found three in four consumers are ready to purchase more sustainable chocolate, but are unsure of their options. Cargill’s own proprietary research, Divecha said, echoes this sentiment, adding that cocoa-free alternatives also have other measurable benefits, including a lower water footprint, lower land-use impacts and a reduced carbon footprint as they become more popular.
“Today’s consumers are increasingly mindful of sustainability – even when it comes to indulgent treats,” Divecha said, adding that, while the desire to enjoy chocolate remains strong, consumers are increasingly seeking options that “align with their personal values.”
Taste, however, remains one of the biggest barriers to growing the alternative chocolate market. The bar for consumer acceptance is high, and companies have struggled to perfectly recreate a sweet with a more than 4,000 year old history.
“This stuff really has to taste good, because chocolate is an indulgent treat…. It’s for those moments of joy in life,” Maxwell said. He acknowledged the taste of Voyage’s offerings are not a “perfect facsimile” for any particular existing cocoa product, and that they involve a learning curve for consumers.
“People love certainty in food,” Maxwell said. “But, we do see it moving in the direction of people being more and more okay with it.”
