Cocoa Prices Skyrocket to Record Highs, Squeezing Chocolate Supplies
• Cocoa prices have skyrocketed recently, with benchmark futures last week hitting a record $8,018 per metric ton. This is a 25% weekly increase and 215% higher than last year.
• Four West African countries produce almost 75% of the world's cocoa, but bad weather, disease, and lack of investment in trees have led to poor harvests and tight supply.
• There is a yawning gap between cocoa supply and demand - the market will be short 374,000 tons this season, up from 74,000 tons last season.
• Global chocolate demand has doubled in the last three decades as it transitioned from a luxury to a common item.
• Chocolate product prices at US retail stores grew 11.6% in 2023 vs. the previous year. Hershey and Mondelez warned they'll likely pass higher cocoa costs to consumers.