Your chocolates might get costlier — here’s why

It's not just a minor increase of 10 or 20; in fact, cocoa prices have reached a 44-year peak, highlighting the significant disparity between supply and demand. Currently, New York cocoa prices are trading at $3,900 per tonne. Both New York and London cocoa prices, including current and future contracts, have reached record highs. This issue isn't confined to the short term; it's expected to persist into the foreseeable future, with a consistently bullish sentiment.

Factors like El Nino concerns and challenges in West Africa, a major cocoa producer, are contributing to this price surge. West Africa has been grappling with heavy rains and the presence of Black Pod disease. It's projected that approximately 20 percent of the cocoa crop in the Ivory Coast will be affected by these diseases. Furthermore, Ghana's cocoa crop for the 2022-23 season has fallen by 24 percent to a 13-year low, leading to concerns in the market. Nigeria, another significant exporter, has also witnessed a 14 percent year-on-year decline in cocoa exports.

Meanwhile, demand for cocoa has remained robust. Chocolate sales saw a substantial increase of 10 percent in the past year. Additionally, a report from Euromonitor forecasts a nearly 5.8 percent year-on-year growth in global chocolate demand for 2023. These demand figures appear strong across the board, but it's anticipated that cocoa prices will continue to rise in the near future.