As the Easter holidays draw near, consumers are experiencing a sharp increase in the prices of chocolate eggs and bunnies due to soaring cocoa prices. However, this surge in chocolate prices is just the beginning of a larger trend.
The current price hikes in stores reflect the significant increases in cocoa prices since 2023. Cocoa prices have more than doubled this year, making it one of the most sought-after commodities globally.
In the past three weeks alone, wholesale cocoa bean prices in New York have surged by over 47%, surpassing $8,900 per ton—a level previously considered unattainable.
These price spikes are translating into even higher costs for households as retailers adjust their prices. Consumers in the UK are already paying more for chocolate and encountering “shrinkflation,” where they receive less product for the same price. In Brazil, where Easter holds significant cultural importance, chocolate egg prices have become a subject of internet memes due to some stores offering loans and payment installments for purchases.
The unprecedented surge in cocoa prices can be attributed to disappointing harvests in major cocoa-producing countries like Ivory Coast and Ghana. Most of the world’s cocoa production comes from smallholder farmers who face challenges such as low returns and climate change impacts.
Emily Stone, the founder of specialty cocoa dealer Uncommon Cacao, notes that persistent low prices for producers and climate change have contributed to the current market highs. She emphasizes that such developments were foreseeable.
This surge in cocoa prices underscores the impact individual commodity price hikes can have on consumers, even as overall inflation rates stabilize globally. While chocolate may be considered a luxury, it’s a staple for many, leading to increased sensitivity to price changes, especially following recent inflation spikes.
In the US, the average price of chocolate eggs has risen by 12% over the past year, while some popular Easter eggs in the UK have seen prices surge by up to 50%. However, these changes only reflect a fraction of cocoa’s overall price rally, with shortages expected to persist.
Confectionery is among the categories where US consumers are noticing “shrinkflation” the most, leading to reduced purchases of chocolate and candy. Companies like Lindt & Sprüngli have announced price hikes due to rising raw material costs, with other major chocolate manufacturers likely to follow suit.
Despite attempts to absorb costs, companies such as Nestle foresee the need for responsible pricing adjustments in the face of persistently high cocoa prices.