Soaring chocolate prices: The worst is yet to come

Cocoa commodity prices skyrocketed earlier this year and have remained at significantly elevated levels due to a global cocoa shortage. The massive cost hikes are putting strong pressure on chocolate producers, who will likely pass on the burden to consumers, resulting in higher retail prices. The main impact of the cocoa crisis still lies ahead, as companies hedge prices and supply contracts up to a year in advance. Significantly higher chocolate prices will likely hit shelves over the coming months and going into 2025, providing a major challenge for the chocolate sector, which is already battling a longer-term, structural decline in demand. Meanwhile, more challenges lie ahead, with the upcoming EU regulation on deforestation expected to exacerbate cost and supply issues.