Chocolate Becomes Affordable Again as Cocoa Prices Fall

Chocolate is becoming more affordable after cocoa prices, the main raw ingredient, dropped to their lowest level in nearly three years. 

The recent decline follows a historic surge caused by supply disruptions in West Africa, rising shipping costs, and climate concerns.

Cocoa futures in New York fell to around $3,000 per ton, down more than 50% this year, as higher prices had previously reduced demand while encouraging farmers to produce more. International buyers are hesitant, boosting stockpiles at ICE to a five-month high.

Ghana cut the price it pays farmers by about 30%, and Ivory Coast may follow, with the two countries producing over half of global cocoa. 

Global surpluses are expected, and favorable weather in West Africa is supporting larger, healthier pods.

Weak demand persists, with Barry Callebaut reporting a 22% drop in cocoa sales volume, and grinding data in Europe, Asia, and North America showing minimal growth or decline.

The combination of higher supply and slowing demand has pushed cocoa prices down, easing costs for chocolate lovers worldwide.