Chocolate lovers may need to brace themselves for a price surge as the cost of cocoa has soared to a 50-year high. Recently, cocoa prices reached an astounding $17,300 AUD per tonne, driven by a global shortage. This increase is expected to be reflected in consumer prices as the market adjusts.
An astounding 70% of the world’s cocoa is cultivated in West Africa—a region grappling with severe weather conditions, diseases affecting cocoa trees, and long-term underinvestment in agriculture. According to a RaboResearch report, these challenges have led to a scarcity that is unlikely to be resolved swiftly. Paul Joules, a RaboResearch analyst, noted that the most significant price hikes are expected during the latter half of 2024 and into 2025. The impact will be felt most keenly by consumers who favour dark chocolates, which are dependent on higher cocoa content.
Joules further explained that manufacturers might resort to reducing the size or quality of chocolate bars to manage costs without increasing prices excessively. However, such measures are often met with disapproval by consumers concerned about value for money.
A Nestlé Oceania spokesperson confirmed cocoa’s substantial influence on chocolate pricing but emphasized that other factors also play a role. “We strive to minimize price increases to maintain affordability, while continuing to offer high-quality products,” they stated. As the cocoa market fluctuates, consumers are eager to hear reassurance from other major chocolate brands, particularly before the Easter season approaches.
