Consumers should prepare for more expensive chocolate. The price for a ton of cocoa has reached a historic high of almost 5,500 euros, which has increased considerably compared to previous years. But that’s not all: classic chocolate bars could – at the same or increasing price – become smaller in the future…
At the beginning of January the price was below 4,000 euros, and in February last year it was below 2,500 euros. According to experts, the reason for the rapid price increase is a shortage of supply, also due to climate-related extreme weather events.
Lower yields due to increasing heat
Extended periods of drought, heavy rains, floods and plant diseases have recently led to significantly lower yields or even completely destroyed crops in growing countries such as Ivory Coast and Ghana.
Demand greater than supply
The confectionery industry complains about the sharply increased costs. According to the Federal Association of the German Confectionery Industry (BDSI), EU sugar was 72 percent more expensive in 2023 than the previous year, cocoa butter by 52 percent and cocoa by 43 percent. Retailers are cautious when it comes to prices and do not want to say anything about them for competitive reasons. Global demand is significantly greater than supply. It is also possible that the classic table will shrink rather than shrink if costs remain the same or increase.
A spokesperson for chocolate manufacturer Ritter Sport explains: “A kilo of cocoa is almost three euros more expensive than a year ago. Everyone can calculate for themselves what this means for the production costs of a 100 gram chocolate bar containing between 35 and 70 percent cocoa, but we are currently assessing the situation as a whole.”
Michele Buck, head of the American company Hershey, one of the largest confectionery manufacturers in the world, recently did not rule out a price increase. “Given the current state of cocoa prices, we will use every tool in our toolbox, including pricing, to manage the business,” she said.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
