Will Chocolate Prices Skyrocket Before Easter?

Chocolate candy is a staple of the Easter holiday. But will a steep increase in cocoa prices make it harder for consumers to fill their baskets with chocolate and other sweet treats?

The Associated Press reports cocoa futures have surged this year. Prices have doubled since the start of 2024. This is due to weather patterns that have ruined cocoa crops in West Africa. The country produces over 70% of the world’s cocoa supply. Most global cocoa production is concentrated in the West African nations of Ghana, the Ivory Coast, Cameroon, and Nigeria.

Added to this problem are the rising prices of sugar, up an estimated 8% this year alone. Ultimately, it will be more expensive to produce chocolate.

However, these price increases might take longer to reach supermarket shelves than the Easter season. But as demand for chocolate stays strong and supply uncertainty remains questionable, candy makers could pass on added costs to consumers as the months progress.

A @Reuters investigation suggests chocolate makers are facing trouble as cocoa plants in Africa halt operations. Here’s what you need to know about the potential global shortage and price increase for chocolate https://t.co/JI4YySu2w5 pic.twitter.com/fhVCP6DyjO

— Reuters (@Reuters) March 14, 2024

Reuters reports that the rise in prices for cocoa beans has heaped pressure on the processing plants that turn those beans into cocoa butter and liquor, which, in turn, supply the world’s chocolate makers.

According to Market Watch, it may take some time for consumers to see higher store prices. Jake Hanley, managing director and senior portfolio specialist at Teucrium, explained that manufacturers “employ hedging strategies to control costs and remain competitive during periods of supply shocks.”

In February, Hershey’s CEO and company president Michele Buck warned of a potential consumer price increase for the brand’s chocolate snacks and goods. In a press release, Buck stated that the company would continue to operate in a “dynamic environment.” However, the company continues to be “encouraged by the resilience of seasonal traditions.”

Candy companies are adapting to rising prices in two ways, neither benefitting consumers. Some are shrinking the size of their chocolates or diversifying, while others reduce the cocoa ingredients in their products.