After a year of smaller bars, extra wafers, and chocolate alternatives, at least one major chocolate maker is putting the cocoa back in — and others may follow suit — as a slump in bean prices since 2024 makes the traditional treat more profitable.
The shift, driven by a near 70% slide in cocoa futures from late-2024 records, promises lower shelf prices for consumers, a demand recovery for cocoa farmers, and a partial reversal away from chocolate alternatives made with too little cocoa to qualify as chocolate.
U.S.-based confectionery maker Hershey has made public its plans to hike the cocoa content in its chocolate alternatives. After the grandson of the founder of Reese's criticized Hershey for reformulating some iconic Reese's products into chocolate candy, the company said that from next year, all Hershey's and Reese's products will return to their original recipes.
Other companies will likely follow suit, said independent consultant Roger Bradshaw: 'Absolutely it makes sense to switch back to real chocolate at current cocoa price levels.'
Snack maker Mondelez did not respond to requests for comment, while Nestle and Ferrero had no immediate comment.
After cocoa prices nearly tripled to above $12,000 a metric ton in 2024 due to adverse weather and disease, chocolate makers began shrinking bar sizes, adding more wafers, fruit, and nuts, and introducing chocolate alternatives.
They also drew down cocoa stocks, raised prices, and ramped up investments in products like ChoViva, a cocoa-free chocolate alternative made from sunflower seeds and oats. This caused a sharp drop in cocoa demand that experts say drove a 70% drop in bean prices from their late-2024 peaks.
Demand could hit nine-year lows in the 12 months to end-September, said veteran analyst Steve Wateridge. The fall in cocoa prices should, however, lead to a recovery in demand starting in the second half of the year.
It can take 10 months or so for cocoa price changes to filter down to chocolate retail prices because chocolate makers hedge or lock in purchase prices months in advance. Supermarkets and other buyers have been pressuring chocolate makers to lower prices since around mid-2025.
Mondelez said last month it had trimmed some chocolate prices in Europe and was starting to see sales volumes rise. Barry Callebaut expects sales volume to grow between 1% and 5% in the six months through August from a year earlier.
CEO Hein Schumacher said that at current cocoa prices, producing chocolate can be cheaper than making chocolate-flavoured alternatives using vegetable fat. In Brazil, a law was signed requiring dark chocolate labels to contain at least 35% cocoa solids.
A pivot back to more traditional chocolate would be good news for nearly 2 million poverty-stricken cocoa farmers in top growers Ivory Coast and Ghana. However, it will likely take 2.5 years to see volumes return to pre-2023/24 levels. Some alternatives are likely to remain as chocolate makers fear cocoa prices will rise again.
