Cocoa prices have dropped significantly after reaching record highs last year. Chocolate manufacturers, including major companies, are taking steps to reduce the impact of future market fluctuations.

Cocoa Price Trends

In January 2025, cocoa prices peaked at $10.70 per kilogram ($10,750 per metric ton) due to unfavorable weather conditions in key growing regions. Prices then fell sharply, hitting a low of $3.24 in March 2026, before rebounding slightly to $4.36 in June, according to World Bank data.

Impact of Weather Conditions

Favorable weather in Côte d’Ivoire and Ghana—countries responsible for about 60% of global cocoa production—helped restore crop volumes. However, there remains a risk of new price spikes due to the potential intensification of the El Niño climate phenomenon.

Chocolate Manufacturers’ Response

Food companies are re-evaluating their supply chains and cutting costs to maintain profitability amid possible market volatility.

Mondelēz International Strategies

Mondelēz International, the maker of Toblerone chocolate, is working to reduce its dependence on cocoa. The company is focusing on improving efficiency, especially in its supply chains in Europe and the US. In April, Mondelēz became the first major company to launch chocolate made with cell-based technology from the startup Celleste Bio. The company is also expanding its range of bars with nougat, caramel, nuts, and fruit fillings, allowing for less chocolate use compared to solid bars.

Hershey’s Measures

Hershey is implementing financial discipline and diversifying its supply chains to reduce reliance on a single region. The company is also increasing transparency in cocoa sourcing by using more data on pollination trends, weather conditions, fertilizer use, and pod counts.

Market Outlook

Chocolate manufacturers continue to adapt to changing market conditions by introducing innovations and strengthening control over supply chains to minimize the impact of price volatility on their operations.