Cocoa Alternatives Gain Traction as Volatility and Sustainability Concerns Rise

The chocolate industry is facing a period of significant disruption, driven by both volatile cocoa prices and increasing concerns about the sustainability of cocoa production. Major players are investing in and scaling up alternatives to traditional cocoa, offering a potential “insurance policy” against future market instability and environmental pressures.

Cocoa Price Volatility: A Recent History

Cocoa prices experienced dramatic fluctuations in recent years. In December 2024, the price reached an all-time high of $12,906 per metric tonne, spurred by supply deficits stemming from climate-related crop failures in Côte d’Ivoire and Ghana, which collectively account for over 60% of global cocoa production. However, as of February 17, 2025, prices had fallen to $3,466 per metric tonne, a 66.3% year-over-year decrease, due to shifting consumer demand and manufacturers passing on previous cost increases.

Industry Response: Investing in Cocoa-Free Solutions

Several major companies are actively pursuing cocoa-free alternatives. Cargill has partnered with Voyage Foods to develop NextCoa, an ingredient made from grape seeds and sunflower seeds. Nestlé is launching a product in Germany containing Planet A Foods’ ChoViva, a cocoa-free chocolate made from ground sunflower seeds. Barry Callebaut has also partnered with Planet A Foods to promote these alternatives.

NextCoa: A Scalable Alternative

Cargill’s NextCoa is being manufactured in both the US (Ohio) and the Netherlands (Deventer), and is available in liquid and solid formats for use in bakery, confectionery, ice cream, and snack applications. Cargill emphasizes that NextCoa offers a scalable supply solution with established manufacturing and quality systems.

Sustainability Benefits of Cocoa Alternatives

Compared to traditional chocolate production, NextCoa offers significant sustainability advantages: it reduces the carbon footprint by up to 67%, has 90% less land-related impact, and consumes 95% less water.

Other Players in the Cocoa-Free Space

Beyond Cargill and Nestlé, other companies are entering the market. Win-Win, a UK-based food-tech company, produces cocoa-free chocolate from rice, carob, sunflower seeds, and tigernuts, and recently secured £3m in Series A funding. Born Maverick, a startup based in Belfast, is developing Betta Choc, a cocoa alternative made from date seeds.

Market Outlook and Consumer Acceptance

While cocoa-free alternatives currently represent a small portion of the overall chocolate market (valued at over $120 billion in 2024 and projected to reach over $141 billion by 2029), early indicators suggest growing consumer interest, particularly among younger demographics like Gen Z. Companies anticipate early adoption in high-volume, everyday applications like bakery coatings and snack inclusions, where cost predictability and resilience are key considerations.