Global demand for chocolate has collapsed despite lower cocoa prices, Azernews reports.

Production rates at factories worldwide are declining, signaling that the aftermath of last year's sharp price surge continues to impact processors' profits. As a result, the cost of sweet treats is unlikely to drop significantly in the near future. In the third quarter of 2025, cocoa processing in Europe fell to its lowest level in at least a decade, with similar declines observed in Asia and North America.

Although New York cocoa futures have halved since their peak in December, chocolate manufacturers are still working with costly raw materials purchased earlier at higher prices. According to Jonathan Parkman, head of agricultural sales at Marex Group, processors have locked in elevated prices for the next six months.

“The demand for cocoa butter is low, and unlike last year, concerns about its supply have eased. We are witnessing increased substitution of cocoa butter with alternative ingredients due to the rising cocoa prices,” Parkman explained.

This trend reflects broader shifts in consumer behavior and production strategies. As inflation pressures persist and consumers become more price-sensitive, some manufacturers are reformulating recipes to reduce costs or exploring new sweet treat alternatives. Additionally, growing health consciousness and changing dietary preferences are contributing to lower chocolate consumption in some markets.

Experts warn that unless the industry adapts through innovation or supply chain efficiencies, the chocolate sector could face prolonged challenges. On the flip side, this period might spur breakthroughs in sustainable cocoa farming and alternative ingredients that could redefine the future of the chocolate industry.

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