Cocoa prices have increased by 45% in the past year, causing chocolate consumption in the United States to drop. Despite this, high-end chocolatiers like Mary Leonard of Chocolat Céleste are seeing steady sales due to customers’ willingness to pay premium prices for artisanal treats.
The main reason behind the decline is the rising cost of cocoa beans, primarily due to drought and extreme weather in West Africa. This has led U.S. confectioners to reduce candy product sizes and offer more flavors during major chocolate-sale seasons like Valentine’s Day, Halloween, and Easter.
As a result, consumers are already trending toward smaller sizes, but soon they’ll be paying more for less. The high cost of cocoa is also expected to drive up prices for popular sweets like Oreos and KitKats.
Cargill, a major agribusiness, has predicted Americans will buy 75 million pounds of chocolate for this year’s holiday. However, the company recently announced it will close a chocolate plant in Pennsylvania due to higher production costs.
To adapt to changing consumer demands, Cargill is shifting its focus toward smaller portion sizes and bold flavors like yuzu and blood orange. The company also plans to expand its confectionery alternatives business, which offers cocoa-free products that mimic the taste of traditional chocolate.
Source: https://www.startribune.com/cocoa-prices-high-chocolate-cargill-valentines-day-candy-bar-expensive/601222439