Rising Cocoa Prices are Souring the Outlook for Chocolate Candy Makers
According to new research from CoBank’s Knowledge Exchange, U.S. consumers are paying more for chocolate products as confection manufacturers raise prices in response to the soaring cost of cocoa. Cocoa prices are nearly 65% higher than they were one year ago, and New York futures prices are at a 46-year high. While consumer demand has remained relatively strong, higher retail prices are poised to take a bigger toll on volume sales and stifle category growth through much of 2024.
According to the research, cocoa prices are likely to remain elevated until a new African crop comes to market in late 2024. Consequently, additional price hikes for chocolate confections throughout the year are likely, and any rebound in consumer engagement with the category is unlikely.