Confectionery manufacturers look to cocoa-free chocolate as global prices soar

Consumers may soon see more of their favourite sweet treats contain cocoa-free chocolate as food makers look to weather the volatile price and supply of the major ingredient.

Confectionery manufacturers are now pursuing a number of different technologies, which could see cocoa beans swapped out for more reliably-sourced alternatives like lab-grown, fermented and upcycled cocoa, according to a new report from banking specialist firm Rabobank.

Global cocoa prices shot up in 2024 amid weather disruptions in West Africa, where a majority of the crop is produced.

After peaking at about $US11,900 ($17,834) per metric tonne — more than four times the historical average — in late 2024 wholesale prices are nearing $US5000 a tonne in January, driven by favourable weather conditions which are expected to boost supply.

But Rabobank commodities analyst Paul Joules said prices remained at levels double what they were in 2023, prior to the 2024 price surge.

“These high prices have been felt in consumers’ hip pockets, coming through in increased chocolate prices,” he said.

Rabobank said with the global cocoa market recently experiencing its most turbulent period in decades, cocoa-free innovation in chocolate “is moving from niche experiments to strategic initiatives” as manufacturers look to diversify their ingredient option.

But it said these cocoa substitutes were unlikely to turn up in standard or premium chocolate bars any time soon and would likely be used as “compound” ingredients, like coatings and fillings.

“Core chocolate formats remain the hardest to replicate, so early adoption will concentrate on compound applications,” Rabobank said.

A growing number of companies that supply cocoa butter alternatives are rapidly launching new product lines and increasing volumes in response to soaring demand for substitutes.

Rising cocoa prices have also led to some manufacturers changing the recipes of their chocolate products to the point they can no longer be legally defined as chocolate.

McVitie’s Penguin, the UK version of a Tim Tam, is now labelled “chocolate flavour” because the amount of cocoa they contain has been reduced and no longer met the country’s definition of chocolate.

For milk chocolate to be classified as such, UK regulations say it should be made up of about 20 per cent cocoa solids.

Tim Tam maker Arnott’s has said it had no plans to change its recipe.