The cocoa market hit unprecedented levels at the end of last year and has experienced a dramatic decline throughout 2025. This crash has led to substantial changes in chocolate consumption patterns.
Writing for Vesper recently, commodity trading expert Martijn Bron shared that the market has “effectively transformed into one where weather updates carry more price impact than quarterly earnings reports.” For procurement teams, this volatility means many players are examining their supply chains to see what alternatives are available to mitigate risk.
This shift has put the spotlight firmly on cocoa-free products. Pioneers in the sector are using innovative technology and approaches to produce products like cocoa-free chocolate.
One such company is UK start-up NuKoKo. The food-tech company began in 2022 and uses fava beans and fermentation techniques to produce cocoa-free chocolate. Last year, the company raised US$1.5 million in seed funding to scale up its technology.
What makes the company especially interesting is that it started as a traditional chocolate business, but explored the alternatives market after experiencing issues with volatile cocoa supply.
We catch up with one of the NuKoKo co-founders, Ross Newton, to get his take on the market, where it’s heading, and what he and the team have been up to.
What sparked your journey to deliver alternative cocoa-based products?
Ross: “Myself and Kit, the other founder, previously owned a traditional chocolate business in the UK. We saw how the cocoa market was becoming more volatile.”
How have you seen cocoa alternatives evolve over the last five years?
Ross: “We have only been doing this for three years, but the procurement side of the industry has certainly started to engage and use cocoa alternatives, especially since the spike in cocoa prices a year or so ago.”
What do you see happening to cocoa-based products and sourcing in the next five to 10 years?
Ross: “I see cocoa alts being used as either full replacers but also as reducers for manufacturers to keep costs down and increase their sustainability.”
How has the reception been from larger legacy players in the industry to what you’re doing?
Ross: “They are all interested in us and alternatives, you can see that by the general investment of these companies in us and other players.”
How should procurement professionals consider cocoa when it comes to sourcing and the alternatives market in the current climate?
Ross: “They need to be open and start trying them in their New Product Development (NPD) kitchens, as the issue within cocoa is not going away.”
Any last thoughts?
Ross: “I think it’s interesting that already you are seeing big brands lose the ‘chocolate’ descriptor on their packaging, to allow for alternative ingredients in their formulations.” [Nestlé and Pladis removed the word ‘chocolate’ from the front of its White KitKat packets earlier this year due to cocoa butter falling below the UK’s 20% legal minimum.]
Related content:
– Alternative cocoa solutions: exploring cocoa-free ingredients for sourcing stability
– Why cocoa prices dropped 43%: One of the biggest commodity corrections in 2025
– Ivory Coast cuts cocoa export forecast as severe drought threatens global supply
