Chocolate price shock: sweets are becoming small and expensive!

Chocolate price shock: sweets are becoming small and expensive!

Chocolate prices are rising due to record cocoa prices on the global market, and consumers are faced with the reality that for every euro they receive a third less chocolate than they did five years ago. According to the US investment bank JPMorgan, the industry is facing a possible wave of inflation, which is already weighing on the popularity of the sweets. In particular, Lindt's “Gold Bunny” costs over 4 euros for the first time, while bars have become on average almost a third more expensive, which has a strong influence on consumers' purchasing decisions. Ritter Sport's Alpine milk variety is now available at a price of 1.89 euros instead of 1.49 euros, and the Milka brand was named "sham pack of the month" after the bar shrank from 100 to 90 grams while the price rose from 1.49 to 1.99 euros. These developments come in the context of a market shift caused by climate change and mismanagement in the main cocoa growing regions. Experts predict that the days of cheap cocoa are over.

In West Africa, the main cocoa growing region, harvests have declined massively as a result of extreme weather events and climatic changes. Cocoa production in Ghana collapsed by almost half in 2024, resulting in the worst harvest in two decades. The price of a ton of cocoa rose to up to 12,000 euros, which is six times more expensive than a few years ago. Cocoa farmers like Samuel Davor report serious harvest losses and financial difficulties. They also receive only 9 percent of supermarket prices, meaning they often earn less than half of what they need to survive. Ghana's cocoa authority buys beans for around 3,000 euros per ton, while the market price is significantly higher.

Sustainability and market adjustments

Growing uncertainty in the cocoa market is leading companies to increasingly invest in sustainability programs to increase yields and reduce deforestation. The EU deforestation regulation restricts new plantings in new cultivation areas, which further strains production capacities. At the same time, Oxfam is calling for higher direct payments from manufacturers and supermarkets to cocoa farmers to improve their living conditions. In Germany, around 80 percent of the cocoa comes from Ivory Coast and Ghana, which illustrates the dependence on these regions.

Globally, the cost of cocoa is rising, highlighted in the industry by a 67.55 percent increase in the average price, amplified by the El Niño phenomenon. Due to the cost of living crisis, consumers are increasingly looking for healthier, more sustainable options and demanding transparency in the supply chain. Companies are required to not only communicate price increases transparently, but also to offer nutritional improvements and new product variants. A growing trend is the development of “cocoa-free” chocolate, which uses ingredients such as carob, oats and sunflower seeds, in response to increasing demand for healthier alternatives.

In summary, chocolate manufacturers, especially in Germany, are facing a decline in sales. Sales of chocolate bars fell by 10 percent, while those of chocolates fell by 20 percent. This reflects changing consumer preferences and the challenges posed by rising costs and growing demands for sustainable production practices. Additionally, the cocoa industry is advancing through innovative approaches to meet the challenges of climate change and the demand for healthier offerings. Companies like California Cultured are embracing cellular agriculture as the practice of agroforestry gains traction. Research into fermentation technology is also underway to recreate the taste and texture of traditional chocolate.