After reaching record highs in 2025, cocoa prices have dropped significantly, but chocolate manufacturers are taking steps to mitigate the impact of potential market volatility.

Cocoa Price Trends

In January 2025, cocoa prices hit a historic peak of $10.7 per kilogram ($10,750 per metric ton). This surge was driven by extreme weather conditions in key growing regions. By March 2026, the price had fallen to $3.24 per kilogram, before rising again 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 yields. However, there remains a risk of another price spike due to the possible intensification of the El Niño climate phenomenon.

Chocolate Manufacturers’ Response

Major food companies are re-evaluating their supply chains and cutting costs to maintain profitability amid unstable prices.

Mondelēz International Strategies

Mondelēz International, the maker of Toblerone, is implementing a strategy to reduce its dependence on cocoa. The company is focusing on improving efficiency, particularly 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 has strengthened its financial discipline and diversified its supply chains to reduce reliance on a single region. The company has also increased transparency in cocoa sourcing, gaining more information on pollination trends, weather conditions, fertilizer use, and pod counts.

Market Outlook

Chocolate producers continue to innovate and improve supply chain management to minimize the impact of cocoa price fluctuations and ensure business resilience in a changing market environment.