Vietnam: Chocolate may be more expensive as cocoa prices hit a 7-year high

Published 2023년 6월 15일

Tridge summary

The price of chocolate has increased by 14% in the past year due to a tight supply of cocoa, the main raw material for chocolate production. The cocoa market is seeing a significant increase in prices, with cocoa prices reaching the highest level since June 5, 2016, and is expected to continue this trend. The El Niño weather phenomenon is expected to reduce average purchasing power and wind power in West Africa, where cocoa is mainly grown. As a result, the cocoa market may be short in the next crop, causing prices to rise further. This means that consumers should be prepared for the possibility of chocolate being more expensive as manufacturers increase selling prices due to the price of raw materials, energy prices, and interest rates.

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Original content

According to data from the NielsenIQ database, the price of chocolate has increased by 14% in the past year. Some market observers expect this trend to continue, as the supply of cocoa, the main raw material for chocolate production, is tight. S&P Global Commodity Insights analyst Sergey Chetvertakov said that the cocoa market is seeing a significant increase in prices, as stocks could fall to unusually low levels. Cocoa prices last week increased to 3,160 USD/ton, the highest level since June 5, 2016. According to Chetvertakov, the El Niño weather phenomenon is expected to reduce average purchasing power and wind power in West Africa, where cocoa is mainly grown. Côte d'Ivoire and Ghana account for more than 60% of the world's cocoa production. Mr. Chetvertakov said that the cocoa market may be short in the next crop (lasting from October 2023 to September 2024), causing prices to rise to $3,600/ton. Mr. Chetvertakov said that consumers should be prepared for the ...

Source: Vinanet