Chocolate-makers and sellers have been raising prices to keep up with the skyrocketing costs of cocoa. Hermann J. Knippertz/AP hide caption
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Hermann J. Knippertz/AP
Chocolate-makers and sellers have been raising prices to keep up with the skyrocketing costs of cocoa.
Hermann J. Knippertz/AP
As Valentine's Day approaches, the price of cocoa has never been higher.
The cost of the key ingredient in chocolate has been grinding upward for over two years. In the past year, it has more than doubled. This month, it broke the all-time record from 1977, the year before Hershey introduced Reese's Pieces.
"Quite honestly, all of our chocolates have increased in price," says Ginger Park, who has run a chocolate shop named Chocolate Chocolate in Washington, D.C., for 40 years. "We try not to raise the prices on our customers. But, you know, there are times when we have to — we have no choice."
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Park's store is a constellation of handcrafted bonbons and nostalgic heart-shaped boxes, shiny chocolate domes and sea salt-studded pillows, with flavors like green tea and shiso-lime, espresso and cardamom. The sweets arrive here from Switzerland, Belgium, Vermont and Kansas City, Mo.
Everywhere, chocolate-makers are feeling the price crunch.
"Pre-pandemic, our Belgian chocolates were around $65 a pound, and they're now $85 a pound," Park says. "So it has really gone up. And the same with artisanal."
Ginger Park and her sister have been selling sweets at their shop, Chocolate Chocolate, in Washington, D.C., since 1984. Ginger Park hide caption
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Ginger Park
Ginger Park and her sister have been selling sweets at their shop, Chocolate Chocolate, in Washington, D.C., since 1984.
Ginger Park
Why is cocoa so expensive?
Cocoa's troubles stem from extreme weather in West Africa, where farmers grow the majority of the world's cacao beans.
"There were massive rains, and then there was a massive dry spell coupled with wind," says CoBank senior analyst Billy Roberts. "It led to some pretty harsh growing conditions for cocoa," including pests and disease.
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Now, cocoa harvests are coming up short for the third year in a row. Regulators in the top-producing Ivory Coast at one point stopped selling contracts for cocoa exports altogether because of uncertainty over new crops.
Every day, Roberts would check on cocoa futures — which is how investors trade in cocoa — and their price would leap closer to that 47-year-old record. Last week, it jumped over the record and kept going. Already this year, cocoa has recorded one of the biggest price gains of all commodities traded in the United States.
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Major candy manufacturers, including Nestlé and Cadbury, have been raising prices to offset the higher costs — of mainly cocoa, but also sugar and wages. They've signaled more price hikes could come later this year.
Chocolate lovers won't see a sudden price spike this week for Valentine's Day. That's because costs have already risen steadily for months. With a new crop not coming for months, Roberts says, Easter and especially Halloween could see the worst of it.
Cocoa prices have more than doubled in the past year. Eric Risberg/AP hide caption
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Eric Risberg/AP
Cocoa prices have more than doubled in the past year.
Eric Risberg/AP
"Given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business," Hershey CEO Michele Buck said during an earnings call on Thursday.
Surveys and data show that some shoppers have started to switch to cheaper chocolate or buy a bit less. Sweets included, retailers are still forecasting that each shopper on average will spend more on this Valentine's Day than they did in the past five years.
"Honestly, we have not felt the effects from our customers," says Park. "And I don't know if it's because they know everything has gone up and they understand — or they're just chocoholics like us."
After all, chocolate is a special kind of spending — a treat that delivers a boost of happiness, Park adds. Can you really put a price on that?
FAQs
Cocoa prices spiked to an all-time high right before Valentine's Day. Why is this happening? It all boils down to a dramatic drop in supply. The world is facing the biggest deficit of cocoa in decades.
Why is cocoa so expensive right now? ›
Things are getting so dire that Agri-Way noted "cocoa farmers are unlikely to fulfill some of their cocoa contracts for a second season." And, these unfulfilled contracts have led to several cocoa plants in the region halting processing as they can no longer afford to buy the raw beans, Reuters reported, creating the ...
What was the highest price of cocoa? ›
Ghana's cocoa output for the season lasting between 2023 and 2024 is now expected to be down by almost 40%. Boafo said this shortage of beans was the trigger for recent prices surpassing $10,000 per ton on the world market.
What is the all time high for cocoa? ›
Historically, Cocoa reached an all time high of 12261.00 in April of 2024. Cocoa - data, forecasts, historical chart - was last updated on April 21 of 2024.
Why have chocolate prices gone up? ›
Cocoa futures have surged this year, roughly doubling since the start of 2024. Rising temperatures and weather conditions have stressed and damaged crops in West Africa, which produces more than 70% of the global cocoa supply. Sugar prices are also rising.
Is cocoa getting more expensive? ›
Cocoa has more than tripled in cost over the past year and is up 129% in 2024.
Is there a cocoa shortage 2024? ›
The International Cocoa Organization (ICCO) predicts production will trail demand by 374,000 metric tons in the 2023-2024 season, the third straight shortfall. Chocolate maker Barry Callebaut AG sees a deficit of 500,000 tons, equal to about a 10th of the global market, and the company sees another shortfall next year.
Who is the biggest buyer of cocoa? ›
Top importers of Cocoa beans, whole/broken, raw/roasted in 2022. The world's largest importers of this commodity group in 2022: Netherlands - 19.4% of the world imports ($1.54 billion) Malaysia - 13.4% ($1.06 billion)
Who sets the price of cocoa? ›
What drives cocoa pricing? The price of cocoa is set in the commodities market, which is driven by supply and demand.
Where does 70% of cocoa come from? ›
About 70 percent of the world's cocoa beans come from four West African countries: Ivory Coast, Ghana, Nigeria and Cameroon. The Ivory Coast and Ghana are by far the two largest producers of cocoa, accounting for more than 50 percent of the world´s cocoa.
Full of Protective Antioxidants
The Journal of the American Medical Association reports that 100 percent cacao is absolutely packed with antioxidants. Antioxidants bind to what are known as 'free radicals,' destructive molecules that are implicated in heart disease and other ailments, and decommission them.
Is 70% cocoa healthy? ›
Aim for chocolate that is at least 70% cocoa. This contains more natural fiber, minerals, vitamins, and antioxidants, and fewer other ingredients, like refined sugar and additives. There is evidence that the nutrients and antioxidants in cocoa — particularly flavanols — may help: boost beneficial gut bacteria.
Is 72 cocoa healthy? ›
Of course, the darker the chocolate the better, but any 70-percent dark chocolate or higher contains antioxidants, fiber, potassium, calcium, copper, and magnesium, according to a research article. It also contains a good chunk of calories and fat, so be mindful of your daily intake.
Is there a shortage of cocoa? ›
Growing demand for cocoa underscores the urgency in addressing the intertwined issues that relate to the industry's sustainability. A shortage of cocoa beans has led to a near shutdown of processing plants in Côte d'Ivoire and Ghana, the two countries responsible for 60% of global production.
Why is real chocolate so expensive? ›
Chocolate has three main ingredients: cocoa butter, cocoa liquor and sugar. These three components represent 80-90% of chocolate ingredients. Hence, a big portion of chocolate costs come from two commodities: sugar and cocoa. Any significant change in the price of these commodities directly affects chocolate prices.
What is the price of cocoa? ›
Unit conversion for Cocoa Price Today
| Conversion | Cocoa Price | Price |
|---|
| 1 Ton = 1,000 Kilograms | Cocoa Price Per 1 Kilogram | 9.78 USD |
The simplest explanation for the ongoing cocoa shortage is extreme weather, heightened by climate change. Exceptionally hot and dry conditions in West Africa, partly driven by the current El Niño event, have led to reduced yields.
Why is there a shortage of cocoa powder? ›
Why has cocoa production declined sharply in west Africa? Three factors are at play: environmental, economic cycle related and human. One environmental factor is the impact of the El Niño weather phenomenon, which has caused drier weather in west Africa.
What is the problem with cocoa supply? ›
Growing demand for cocoa underscores the urgency in addressing the intertwined issues that relate to the industry's sustainability. A shortage of cocoa beans has led to a near shutdown of processing plants in Côte d'Ivoire and Ghana, the two countries responsible for 60% of global production.
What are the current issues in cocoa? ›
Challenges in the Cocoa Sector
- Income of cocoa farmers. The income of cocoa farmers in Côte d'Ivoire and Ghana averages EUR 0.97 per person and day (among others: study by KIT Institute, 2019). ...
- Abusive child labour. ...
- Deforestation through cocoa farming. ...
- Compliance with human rights.
