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Why chocolate prices are high this year and are expected to continue to rise

The global price of cocoa has risen 160% in a year, mainly due to poor harvests in major producing countries.

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Your Easter chocolate bill may have left you with a bitter aftertaste. Eggs, chickens, rabbits… The consumer association UFC-Que Choisir, which reviewed a list of 80 chocolates in a study published on Wednesday March 27, observes that their prices have increased by an average of 5% this year compared to 2023. A much higher level than food inflation, which stood at 1.7% year-on-year in March. How can we explain this rise in prices, which may well last?

If chocolate is more expensive on the shelves, it is partly because of the explosion in the price of cocoa beans. According to the platform, its global value increased by more than 160% compared to the last Easter holiday. Trade eToro. For the first time, cocoa briefly crossed the $10,000 per tonne mark on Tuesday. The increase is associated with poor harvests in Ivory Coast and Ghana, which together represent more than half of world production.

The aftermath of El Nino

West Africa is suffering the effects of the El Nino climate phenomenon and has faced episodes of extreme rainfall and drought in recent months. “It caused a certain amount of rot and mold on the trees.”Thierry Lalet, president of France’s Confederation of Chocolatiers and Confectioners, explains to Europe 1. “We saw the appearance of disease, a little like in the vineyards.”. The The humid conditions have significantly allowed the spread of the cocoa shoot edema virus, which causes rotting of the cocoa beans on the trees.

Rising cocoa prices fuel inflation that has affected other components of chocolate product prices, such as sugar and energy, in recent years. However it is currently comparable to Easter 2023″Sugar prices “Increased significantly (+16%) from Easter 2022”The eToro platform notes.

Costs are passed on differently depending on the chocolate manufacturer

The increase comes at a crucial time for chocolatiers: after Christmas, Easter is the second highlight of the year. Specialist magazine LSA says the Easter weekend celebrations represent around 11% of their annual sales. In this regard, professionals in the sector must decide whether to raise their prices or lose part of their margins – at the risk of suppressing the appetite of consumers.

Large producers usually buy their beans well in advance. The cocoa consumed this year was harvested last year, before El Niño hit. underlined Parisian. But some of them have already anticipated and revised their prices. In early March, Lindt & Sprüngli warned that its prices would rise in 2024 and 2025 after an average increase of 10.1% in 2023. Thus, the brand’s golden rabbit is currently sold at 6% more than last time. year, according to UFC-Que Choisir.

However, part of this increase in costs remains “Producers’ Responsibility” Who doesn’t “These increases cannot be passed on entirely to retail prices”Because they are arranged at certain intervals during negotiations with the big stores, “And not constantly”Thomas Juch, Director of Public Affairs of the Federation of Swiss Chocolate Manufacturers, underlined to AFP. “That There is an effort on the margins” And increase for customers “is under control, as prices were fixed several months ago with distributors when cocoa price increases were low”Gilles Rouvier, General Secretary of the Chocolate Union at BFM, agrees.

“The French need rest”

For artisan chocolatiers, “We are not on the same page process Supply”Thierry deciphers Lalet.The beans we use are off-market, we work more with cooperatives and we have fewer middlemen.”The president of the Confederation of Chocolatiers and Confectioners of France explains on Europe 1.

A chocolatier from Brive (Correz) estimated to France Bleu that the price increase is affecting the big producers more, who usually pay for their cocoa. “cheap”. “The problem is that it’s not just raw materials that are growing: there are also ribbons and food packaging, and for us, this is a very important sector,” For her part testifies the sales manager of another limousine chocolate factory, which has increased its prices by 2%.

Despite this increase, the sector remains confident. “Easter is an anticipated celebration, chocolate is a joyous purchase and the French need relaxation more than ever and despite all the crises, sales are growing”Gilles assures Rouvier.

A trend is set to continue

But prices in stores should continue to rise in the coming months. “On Christmas chocolate, for sure, we can expect a strong impact. And maybe on Easter 2025, if the situation does not change”warns Dominique Schelcher, General Director of Système U at RMC. “Price negotiations with major retailers for next Christmas are now starting, and rightly we are concerned”The General Secretary of the Chocolate Union on BFM admitted.

“If we want SMEs to get through this period (Christmas)Prices will have to be raised, the sustainability of these weakened companies is at risk”He adds.

Unions are particularly concerned “small” Chocolatiers, who haven’t stocked up for Christmas yet. “If they haven’t bought before, they have to buy at peak time,” Denounces Gilles Rouvier at Franceinfo.

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