What if cocoa, the key ingredient in chocolate products, became too expensive or hard to find? We're already facing this reality—cocoa is becoming increasingly scarce, driving up prices and threatening to disrupt supply chains.

Fortunately, alternatives to cocoa could offer a viable solution to sustain your business and meet consumer demands. Let’s explore the cocoa crisis, the rise of alternative ingredients and how your businesses can continue to thrive in the chocolate sector.

The Cocoa Crisis and its Impact on Chocolate Manufacturers

Currently, 60% of the world’s cocoa comes from two West African countries—Ivory Coast and Ghana—where cocoa farmers are facing significant hurdles.

Crop diseases like black pod disease and swollen shoot virus have ravaged cocoa crops, while climate change has further strained production. Research by Reuters reveals that, as a result, the supply is shrinking, and the cost of cocoa has skyrocketed, more than doubling in price during 2024.

According to the International Cocoa Organization (ICCO), the global cocoa shortage is expected to reach 374,000 tons this year, compared to just 74,000 tons in 2023. This is driving up production costs, which impacts the pricing of chocolate products.

Chocolate manufacturers need to explore sustainable alternatives and new ingredient sources to ensure a steady supply and mitigate costs.

Emerging Cocoa-Free Alternatives

As cocoa supplies continue to decline, the industry is increasingly turning to alternatives that can mimic the rich taste and texture of traditional chocolate. Ingredients such as fava beans, oats, barley, sunflower seeds, and even grape seeds are being processed using roasting and fermentation methods to replicate chocolate’s signature flavours.

These alternatives are not just about replacing cocoa; they are driving innovation. Cocoa-free chocolate offers the potential for a new product category—one that responds directly to the cocoa shortage while also meeting the growing demand for plant-based and sustainable alternatives.

Environmental and Cost Benefits of Cocoa-Free Ingredients
 

Cocoa farming is notorious for its environmental impact, including deforestation, high water usage, and carbon emissions. By shifting to alternative ingredients, manufacturers can reduce their carbon footprint and avoid contributing to the negative effects of cocoa production.

For example, fava beans are gaining attention for their low carbon intensity. According to research from The Mills Fabrica, fava beans emit just 0.23–0.58 kg of CO2 equivalent per kilogram, significantly lower than the 1.47 kg per kilogram associated with cocoa beans. Additionally, crops like oats and sunflower seeds require fewer resources to grow and are less likely to contribute to environmental degradation.

By adopting these alternatives, chocolate manufacturers can not only meet consumer demand for more sustainable products, but also benefit from lower production costs.

Leading Brands Making the Shift to Sustainable Chocolate

Several chocolate manufacturers are already setting a standard for the industry by adopting eco-friendly manufacturing methods.

These brands who have been featured at ISM Middle East show that sustainability is an opportunity for differentiation in the market:

• Guylian: This Belgian brand is focusing on sustainability with Fair Trade certification, carbon neutrality, and recyclable packaging. Its commitment to sustainability ensures products are palm and soy-free, which resonates with eco-conscious consumers.
• Halloren Schokoladenfabrik AG: As Germany’s oldest chocolate manufacturer, Halloren is known for its premium chocolates and is committed to sustainable sourcing. The company’s efforts include ensuring that their cocoa is sourced responsibly, with a focus on reducing environmental impact.
• Luker Chocolate: A family-owned Colombian brand with over a century of experience, Luker is driving sustainability in chocolate production. Their “Chocolate Dream” plan emphasises environmental protection, social equity, and improving the livelihoods of cocoa farmers.

Exploring similar practices can help future-proof your business against the challenges of cocoa scarcity while aligning with growing consumer expectations for ethical and environmentally friendly products.

Looking Toward the Future of Chocolate

As the industry heads into 2025, chocolate businesses who are proactive in adopting cocoa-free alternatives and focusing on sustainability will be well-positioned to navigate the changing landscape and meet the evolving demands of the market.

Businesses looking to adapt can start by:

• Manufacturing small-batch products made from alternative ingredients to test the market before scaling up.
• Collaborating with sustainable ingredient suppliers.
• Staying informed about developments in the cocoa-alternative space to keep up with competition.

As we anticipate ISM Middle East 2025, stay tuned for more informative content surrounding the sweet, snack and confectionery industry.