Cocoa Crisis: How Global Warming Is Transforming the Chocolate Industry

As of October 2025, the chocolate industry is grappling with the impacts of global climate change. Over the past few years, candy companies have been quietly updating their packaging to replace the term "milk chocolate" with more generic labels like "chocolate candy" or "rich chocolate."

This shift is a direct response to the soaring prices of cocoa, the primary ingredient in chocolate. Extreme weather patterns, including longer droughts and irregular rainfall, have suppressed cocoa yields in West Africa, the crop's primary growing region. An infection spread by mealybugs has also ravaged cocoa plantations. As a result, cocoa prices peaked at over $10,000 per ton at the end of 2024 - roughly four times the price in 2022.

Faced with these skyrocketing costs, candy manufacturers have turned to reformulating their recipes. Some are replacing expensive cocoa butter with alternative fats, while others are experimenting with realistic substitutes to replicate cocoa butter's unique texture and mouthfeel. Industry insiders say these changes often go undetected by consumers, as candy scientists work to tweak recipes in a way that slips below the regulatory threshold for mandatory label changes.

The future of chocolate may involve a further split, with high-end brands continuing to use traditional ingredients while more affordable options contain less cocoa. This Halloween season, some Hershey's products like Kit Kats and Cookies 'n' Creme Fangs don't even contain any chocolate at all.

As the planet continues to warm, the chocolate industry's ability to adapt will be crucial in ensuring the availability and affordability of this beloved treat.