Coffee and chocolate are two of the world’s favorite indulgences, but this year, rising prices have left many consumers feeling the sting. A surge in cocoa prices this December forced chocolate makers to increase costs, while tighter supplies from West African nations like Ghana and Côte d’Ivoire, due to climate change and crop disease, have only added to the pressure. Similarly, coffee prices are hitting record highs, fueled by rising global demand, poor harvests, tariffs, and geopolitical tensions.

Despite the challenges, there’s some good news: startups are stepping up with exciting alternatives to both coffee and chocolate, along with new strategies for sourcing these commodities more sustainably.

Startups Raising Funds to Tackle Coffee and Chocolate Prices

In recent years, more than a dozen startups have raised over $300 million to create coffee and chocolate alternatives, according to Crunchbase data. Coffee-related startups have received the bulk of the funding, driven by the need to find substitutes and sustainable practices.

Here’s a look at some of the key companies working in this space:

Coffee Alternatives and Sustainability Startups

• Voyage Foods – A food technology company focused on sustainable, allergen-free foods, including coffee and cocoa alternatives. ($117M)
• Atomo Coffee – Makers of molecular coffee, using ingredients like date seeds and sunflower. ($61M)
• The Green Coffee Co. – A company exporting sustainable, traceable coffee beans. ($47.8M)
• Food Brewer – Produces coffee and cocoa alternatives. ($11.2M)
• Kaffe Bueno – Upcycles coffee by-products for use in nutraceuticals, personal care, and food. ($8M)
• Minus – A beanless coffee producer. ($4.5M)
• Ryze Superfoods – Specializes in mushroom coffee. ($2.2M)
• Ecobean – Focuses on reducing coffee waste at a business scale. ($2.1M)

Chocolate Alternatives and Sustainability Startups

• Voyage Foods – Also produces cocoa-free chocolate alternatives. ($117M)
• Planet A Foods – Known for creating cocoa-free chocolate from sunflower seeds and vegetable oils. ($73M)
• Food Brewer – Also working on cocoa and coffee alternatives. ($11.2M)
• Celleste Bio – Uses cell culture techniques to produce cocoa ingredients. ($4.5M)
• California Cultured – A food company focused on lab-grown cocoa. ($4M)

Big Investments in Coffee and Chocolate Alternatives

The largest investments have gone to companies like Voyage Foods and Planet A Foods. Oakland-based Voyage Foods has raised $117 million to create plant-based versions of popular foods, including chocolate and coffee, using sustainable ingredients. The company’s approach involves studying the compounds that create familiar flavors and recreating them with more accessible and sustainable ingredients. Planet A Foods, based in Munich, has raised $73 million for its cocoa-free chocolate, ChoViva, made from sunflower seeds and vegetable oils.

Other companies making strides include Atomo Coffee, which has raised $61 million to make beanless coffee, and Food Brewer, which focuses on cell culture-based coffee and cocoa alternatives, securing $11 million in funding.

Why This Matters: The Size of the Market

Coffee and chocolate are multi-billion-dollar industries. In the U.S. alone, coffee sales exceed $300 million daily, totaling nearly $110 billion annually, according to the National Coffee Association. Over 70% of American adults drink coffee every week, making it the country’s second-most popular beverage.

The chocolate market is equally vast, valued at around $140 billion globally, with the U.S. market continuing to grow, especially in chocolate confectionery sales.

With such significant market potential, startups working on alternatives have a substantial opportunity to tap into consumer demand, especially as prices rise. However, for die-hard coffee and chocolate lovers, any alternative must come close to the real thing to win their loyalty.

As coffee and chocolate prices continue to climb, these startups are not only providing new solutions but also paving the way for a more sustainable and affordable future for these beloved treats.