The surge in cocoa prices, driven by supply constraints in Ivory Coast and Ghana, the world’s largest cocoa producers, has sent shockwaves throughout the chocolate supply chain.
Published Date – 21 March 2024, 05:23 PM
Hyderabad: The sweet indulgence of chocolate may become a little less accessible in the coming months as cocoa prices soar globally, leaving consumers and dessert industry players grappling with higher costs and potential changes in recipes.
The surge in cocoa prices, driven by supply constraints in Ivory Coast and Ghana, the world’s largest cocoa producers, has sent shockwaves throughout the chocolate supply chain. India, a significant importer of cocoa, has felt the ripple effects, witnessing a rapid escalation in cocoa prices within its borders.
“The coming year will be precarious for many craft chocolate makers and commercial brands. We have to be prepared for high chocolate prices in the coming months and start educating our consumers about higher prices,” said Akhil Grandhi, Founder of Bon Fiction.
For businesses reliant on chocolate as a primary ingredient, the situation is dire. Without existing stocks of cocoa, production costs are set to surge, potentially impacting the pricing of chocolate-based products across the board. This includes not only artisanal chocolates but also a wide array of desserts and confectioneries that rely on chocolate as a key component.
Consumers, too, are likely to feel the pinch as prices of chocolate products rise. Whether it’s a chocolate bar or a decadent dessert, the cost is expected to increase, reflecting the heightened expense of cocoa.
Moreover, consumers are urged to remain vigilant about potential substitutions or alterations in recipes by manufacturers seeking to mitigate costs.
“Consumers have to be aware of what they are buying. If prices of the products they are buying have not increased, they should check why they haven’t increased and if anything different was used to substitute real chocolate that has let the prices remain the same. Makers in the Western markets have already started using less Chocolate or substituting chocolate with others. In India the immediate substitution will be by compounds,” he adds.
The international cocoa commodity prices have skyrocketed from $2500 USD (Rs. 207608) per ton to a staggering $8100 USD (Rs. 672652) per ton, with projections indicating further escalation, particularly for fine-quality beans.
As the dessert industry navigates these turbulent times, consumers may find themselves paying more for their chocolate fix.
