• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Chocolate expected to get more expensive as cocoa prices soar to 7-year highs
Editor's Pick

Chocolate expected to get more expensive as cocoa prices soar to 7-year highs

by June 14, 2023
by June 14, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Chocolate lovers are in for a bitter pill to swallow — prices of their favorite food are set to rise further on the back of elevated cocoa costs.

Chocolate prices have risen by 14% in the past year, data from consumer intelligence database NielsenIQ showed. And according to some market watchers, they are about to rise further due to strained supplies of cocoa, which is a significant component of the much-loved foodstuff. 

“The cocoa market has experienced a remarkable surge in prices … This season marks the second consecutive deficit, with cocoa ending stocks expected to dwindle to unusually low levels,” S&P Global Commodity Insights’ Principal Research Analyst Sergey Chetvertakov told CNBC in an email.

More from CNBC

Inflation report Tuesday will be critical for the direction of Fed policyApple hits record high one week after announcing Vision Pro VR headset Flush with cash, the Middle East is ramping up investment in soccer as a soft power push

Prices of cocoa on Friday surged to $3,160 per metric ton — the highest since May 5, 2016. The commodity was last trading at $3,171 per metric ton.

Chetvertakov added that the arrival of the El Niño weather phenomenon is forecast to bring lower than average rainfall and powerful Harmattan winds to West Africa where cocoa is largely grown. Côte d’Ivoire and Ghana account for more than 60% of the world’s cocoa production. 

El Niño is a weather phenomenon that typically brings hotter and drier than usual conditions to the central and eastern tropical Pacific Ocean.

Chetvertakov foresees that the cocoa market could be dented by another deficit in the subsequent season, which runs from October to September next year. And that means cocoa futures could surge further to as high as $3,600 per metric ton, according to his estimates. 

“I believe that consumers should brace themselves for the likelihood of higher chocolate prices,” he said, as chocolate producers are compelled to pass on higher production costs to consumers as they continue to be squeezed by rising raw material costs, surging energy expenses and elevated interest rates.

A large part of what goes into the making of a chocolate bar is cocoa butter, which has also seen a 20.5% increase in prices year-to-date, according to food commodity price database Mintec.

Spike in sugar and cocoa butter prices

“As chocolate is made up primarily of cocoa butter, with some cocoa liquor included in dark or milk, the price of butter is the most direct reflection of how chocolate prices would move,” said Mintec’s Director of Commodity Insights Andrew Moriarty.

He added that cocoa consumption is “near record highs in Europe.” The region is the world’s largest importer of the commodity.

Sugar, another principal ingredient of chocolate, is also seeing price spikes — breaching an 11-year high in April.

“Sugar futures continue to find support from ongoing supply concerns in India, Thailand, Mainland China and the European Union, where drought conditions have hit crops,” a report by Fitch Solutions’ research unit, BMI, dated May 18 said.

And as such, lofty chocolate prices are not expected to taper off anytime soon.

“Continued strong demand tied to whatever economic indicators one chooses to look at could keep prices high for the foreseeable future,” said Barchart’s Senior Market Analyst Darin Newsom.

“Only if demand starts to back down, something I don’t think has occurred yet, will prices of chocolate start to back off,” he said.

Among the different varieties of chocolate, prices of dark will reportedly be the hardest hit. Dark chocolate comprises of more cocoa solids compared to its white and milk chocolate counterparts, containing about 50% to 90% cocoa solids, cocoa butter, and sugar. 

“As a result, the most heavily impacted chocolate price will be dark, which is driven nearly entirely by cocoa ingredient prices,” said Mintec’s Moriarty.

This post appeared first on NBC NEWS
You Might Also Like
  • TNT’s ‘Inside the NBA’ headed for ESPN and ABC after Warner Bros. Discovery settlement
  • Customers want instant gratification. Workers say it’s pushing them to the brink.
  • Sierra Space CEO leaves as $5 billion company pushes to launch space plane
  • Forever 21 seeks rent concessions as fast-fashion brand faces financial woes
Share
0
FacebookTwitterPinterestWhatsapp

previous post
UPS drivers on track to get air-conditioned trucks for the first time
next post
Unlocking Strong AI Investments: You Need To Analyze These ETFs

You may also like

In federal trial, Michael Kors says it’s harder to sell...

September 17, 2024

KORE Delivers IoT SAFE Solution for Massive IoT Use Cases...

January 9, 2023

Consumer price growth falls for 12th-consecutive month to 3%

July 14, 2023

CVS replaces CEO as profits, share price suffer

October 19, 2024

Tesla to recall 125,227 vehicles over faulty seat belt warning...

June 1, 2024

Trademark dispute emerges over Tiger Woods’ new logo

September 30, 2024

Procter & Gamble to cut 7,000 jobs as part of...

June 6, 2025

UPS shares tank 15% after weak guidance, plan to slash...

January 31, 2025

Frontier CEO urges crackdown on ‘rampant abuse’ of airport wheelchair...

May 24, 2024

GM to lay off 1,300 Michigan workers as vehicles end...

December 18, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nike pushes back Skims launch with Kim Kardashian due to production delays

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold Rates Steady

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global ‘pig butchering’ scams

      June 19, 2025
    • Feeling Unsure About the Stock Market’s Next Move? These Charts Can Help

      June 18, 2025
    • Amazon expects to cut corporate jobs as it relies more on AI

      June 18, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,599 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,874 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,577 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,541 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,416 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nike pushes back Skims launch with Kim Kardashian due to...

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold...

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global...

      June 19, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Credit card balances jump and are...

    August 10, 2023

    Higher tax filing costs could take...

    February 3, 2024

    Three-year inflation outlook hits record low...

    August 13, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here