Chocolate prices in the US grew 11.6% in 2023 compared to 2022|Jill|CC BY-NC-ND 2.0
Chocolate prices are surging globally due to supply concerns in West Africa, which produces nearly 75% of the world’s cocoa. With Easter nearing, it could mean fewer eggs to hunt.
Benchmark cocoa futures closed at an all-time high of $8,018 per metric ton on Friday, surpassing the previous record set in July 1977. It is also more than 200% higher than 2023. On-the-spot prices in New York and London have seen similar escalations.
What’s happening to cocoa prices?
As demand for chocolates outweighs supply, cocoa prices go up, driving up costs for chocolate makers and confectioners, which means costlier treats. This cost is passed on to the consumers.
Several other factors also play a role.
- Adverse weather (exacerbated by the El Nino phenomenon) in top producers, Ivory Coast and Ghana, has affected crop yield. The two countries combined supply more than half of the world’s cocoa.
- Countries are also seeing a rise in cases of black pod disease in cacao trees in the region.
- And trees are getting older, passing their prime and yielding less fruit.
Consequently, chocolate companies are adjusting prices, tweaking recipes (substituting cocoa butter with cheaper fats), and reducing product sizes to mitigate the impact of rising cocoa prices.
Chocolate prices in the US grew 11.6% in 2023 compared to 2022, according to market research firm Circana.
Forecasters are suggesting cocoa prices could reach $10,000 per metric ton in spot trading over the next three months.
Surprisingly, the cocoa price surge hasn’t significantly affected global demand yet.