Chocolate Prices Are Skyrocketing!

I’m wishing a belated Happy Easter to ALL Financial Wave readers who celebrate!  Did you happen to notice the prices of those Easter bunnies, eggs, and baskets? 

I consider myself a “Chocoholic!”  Indulging in a piece of chocolate has long been a source of comfort and delight for humans all around the world.  Recently, that pleasure has come with a bitter aftertaste as chocolate prices continue to soar to unprecedented heights.  

A recent report from the Wall Street Journal noted that the price of cocoa (the main ingredient used to produce chocolate) has risen 123% in the first quarter of 2024!  In fact, since the year 2000, the cocoa price per metric ton has increased from $850 to $9900.

Most of the world’s cocoa is produced in West Africa.  Ghana and the Ivory Coast account for 2/3rds of the harvested cocoa beans in the world!  Cacau trees can live for up to 100 years; however, they only produce cocoa for their first 20 years of life.

The primary reasons for the skyrocketing prices of chocolate are:

1. Climate Change:  Either droughts or heavy rains and too much sun in West Africa have adversely affected production.
2. Aging Trees: As mentioned, cacao trees only produce cocoa for their first 20 years of life and many of their trees are now older.
3. Pests and Disease: Pests and diseases like “Frosty Pod” and “Black Pod” continue to ravage the cacao trees further, diminishing harvests and causing a 22-year low in cocoa production supply.
4. Global Supply Chain Disruptions:  The COVID-19 pandemic caused lockdowns, restrictions, and labor shortages and have all contributed to hindering the transportation and processing of cocoa.

These issues put small businesses, chocolatiers, and confectionary companies in a difficult position, as they must balance quality with affordability amidst escalating prices.  Many are forced to reconsider recipes, portion sizes and marketing strategies to adapt to the rapidly changing market dynamics.

Some ways to save money on chocolate include:

1. Stock up on chocolate AFTER holidays:  Chocolate prices get discounted after holidays, including Valentine’s Day, Easter, and Thanksgiving.
2. Buy in Bulk:  The larger the bar the less you pay per gram.  Also, chocolate can and will stay fresh longer if kept in Tupperware or your microwave oven, both of which are airtight.
3. Eat Less: I took a chocolate-eating class a few years ago at Aigner Chocolates (my favorite) given by a health coach.  She explained the proper way to eat chocolate is to take a small piece and let it melt at the top of your mouth instead of chewing it.
4. Opt for Store Brands: Store-brand chocolates are typically less expensive than big-name brands and often still offer good quality.
5. Check online:  Look for sales and online coupons as sellers often have lower prices than brick-and-mortar stores.
6. Kick the Habit:  If all else fails, consider not eating chocolate and substituting something else for your sweet tooth.