Cocoa prices continue to hover above historic levels as poor weather and plant disease deplete West Africa’s cocoa bean supply—or about 70% of the world’s cocoa supply, wrote The Wall Street Journal.
“After soaring to above $12,000 a metric ton in December, cocoa prices have fallen this year, with New York-traded markets hovering around $8,100 this week. … The continuing cocoa market turmoil has cut into food companies’ profits and played into price increases,” the outlet wrote.
Cocoa prices have risen sharply in the last two years due to supply problems in Ghana and the Ivory Coast. Since then, the price of cocoa has fallen to an eight-month low, though it remains above levels seen earlier in the decade, echoed Reuters.
However, the cocoa situation remains volatile, per the Associated Press. “According to the International Cocoa Organization, prices surged in early June on concerns about production in the Ivory Coast but eased on optimistic forecasts for production in Ghana and Latin America. They rose again in late June after heavy rains in West Africa, which could worsen the outbreak of diseases that harm crops,” AP wrote.
This has led to some chocolate manufacturers announcing they may need to raise prices to keep up. The average unit price of a chocolate bar in the U.S. in July 2021 was $2.43, according to NIQ. As of last week, it was $3.45, a 41% increase. NIQ said unit sales of chocolate fell 1.2% for the year ending July 12.
“Tariffs could also impact U.S. prices. President Donald Trump threatened a 21% tariff on cocoa and other products from Ivory Coast in April, for example, but then paused the tariffs’ implementation,” said AP.
The National Confectioners Association said the U.S. imports nearly $4.4 billion in chocolate, cocoa and candies each year, and the association’s members export nearly $2 billion in American-made chocolates and candy annually.
Join your peers at the 2025 NACS Show in Chicago October 14-17 to learn about the latest candy trends. And join the education session “The Snack Breakdown” to hear about what’s driving category trends.