(MENAFN) The cocoa market is grappling with unparalleled uncertainty as prices have surged by over 100 percent since the onset of the year, reaching unprecedented levels and sending shockwaves through the chocolate industry just ahead of Easter. The surge in cocoa prices, which saw a steady ascent throughout 2023, has now skyrocketed to nearly USD9,000 per metric ton, marking a historic high and causing ripples of concern among chocolate manufacturers and retailers alike.
In the span of the last 12 months alone, cocoa prices have soared by approximately 186 percent, eclipsing even the remarkable gains witnessed in the cryptocurrency realm, with Bitcoin rising by 150 percent over the same period. The magnitude of this surge has raised fears among industry experts that consumers may soon feel the impact at the checkout counter as Easter approaches, with expectations of higher chocolate prices looming on the horizon.
American retailers, who bore witness to an 11.6 percent increase in chocolate prices last year compared to 2022, are bracing themselves for further inflationary pressures. The CEOs of major chocolate manufacturers, including Hershey and Cadbury, have voiced concerns over the feasibility of passing on the increased costs to consumers, given the tight supply of cocoa in the market.
The surge in cocoa prices can be attributed in part to adverse weather conditions in key cocoa-producing regions, notably the Ivory Coast, where a lack of rainfall during the crucial April to October period coupled with higher-than-normal temperatures has significantly impacted cocoa yields. This confluence of factors has exacerbated supply constraints, contributing to the unprecedented spike in cocoa prices and casting a shadow over the Easter chocolate market. As stakeholders navigate this uncertain landscape, the resilience of the chocolate industry faces a stern test in the wake of these unprecedented market dynamics.
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