Cocoa Prices Drop Yet Chocolate Remains Expensive, Industry Says

Cocoa futures have fallen about 34% year‑on‑year to $5,327 per metric ton, down from a peak of nearly $12,000 at the end of 2024. The recent price drop follows record‑high levels caused by poor harvests in West Africa, adverse weather linked to El Niño and climate change, as well as geopolitical uncertainty and inflation.

Swiss chocolate manufacturers say the lower commodity price is unlikely to translate into cheaper chocolate. Lindt reported an 11.8% group‑wide price increase that contributed to a 7.5% decline in chocolate sales in the first half of the year. Barry Callebaut noted that global chocolate consumption fell 4.4% in the third quarter compared with last year, but its total sales volume rose 5.7% – the first growth in more than two years. Nestlé said higher cocoa and coffee costs cut its operating profit by 2.8% in the first half, with confectionery accounting for 9.7% of its overall sales. Analysts cite weak consumer confidence, a Middle‑East crisis that reduced tourism flows to Europe, and recent heat waves across the continent as factors keeping chocolate prices high despite the cocoa price decline.