US chocolate prices soar as cocoa costs surge, driven by climate issues and high demand. Despite recent dips, prices remain elevated, impacting manufacturers and consumers nationwide.
The European Union is experiencing a significant rise in chocolate prices as cocoa costs remain elevated despite recent declines from record highs. According to Eurostat, cocoa and powdered chocolate prices surged by over 16% in May 2025 compared to the previous year, marking a steady upward trend in the region.
One key factor driving this increase is the sharp rise in cocoa bean prices over the past two years, compounded by higher sugar and energy costs. The EU, which relies entirely on cocoa imports, sources most of its supply from West Africa, where adverse weather conditions have disrupted harvests in major producing nations like Ghana and Ivory Coast.
"Cocoa prices have nearly tripled compared to two years ago,"
noted Susannah Streeter, a financial analyst, highlighting the volatility in trading patterns. While prices have retreated from peaks above $12,000 per tonne, they remain historically high in key markets such as the New York Mercantile Exchange and London's Intercontinental Exchange.
Recent data shows some relief, with cocoa futures in London dropping to an eight-month low. However, at approximately £5,310 ($7,236) per metric tonne, prices are still more than double those from two years prior. Analysts attribute this partial decline to increased grower investment and improved supply forecasts, though long-term risks persist.
Climate change and trade policies continue to threaten stability in the cocoa market. Diseases like black pod, aging cocoa trees, and geopolitical uncertainties—such as potential tariffs—could limit further price reductions. Danni Hewson, a financial expert, emphasized that while consumer demand has encouraged production growth, external pressures may sustain higher costs.
The EU, the world's largest chocolate consumer, faces ongoing challenges due to its dependence on imports from climate-vulnerable regions. A report by Foresight Transitions suggests that substantial price drops are unlikely in the near term, with repercussions extending beyond retail costs. Major producers, including Barry Callebaut, have reportedly reduced their workforce in response to rising expenses.
In the UK, inflation has further exacerbated the situation, with chocolate prices climbing 17.7% year-over-year in May 2025. Streeter cautioned that unpredictable weather patterns and supply chain disruptions could prolong market volatility, leaving manufacturers to navigate rising energy and labor costs alongside cocoa inflation.
