Overview
- - Cocoa futures are down roughly 70% from last year’s highs, yet U.S. retail chocolate prices rose about 14% from Jan. 1 to early February versus a year ago, according to Datasembly.
- - The 2024 spike stemmed from drought and disease in West Africa; improved weather in Ivory Coast and Ghana and higher output in Ecuador, plus softer demand, have since driven prices lower.
- - U.S. tariffs averaging about 15% last year increased cocoa import costs; the administration removed tariffs on cocoa in November, but duties of 15% or more on many EU chocolate products remain.
- - Long-term contracts and inventory are keeping shelf prices elevated, and companies are cautious given market volatility and consumer tolerance for higher price points.
- - Mondelez cut prices this year in some European markets after steep hikes dented volumes, but it does not plan immediate reductions in North America, and executives say broad consumer relief is more likely next year.