Cocoa prices are easing. So why is chocolate still so expensive?
📰 source: cnbc_topnews · 💼 business
cocoa futures are down 34% over the past year to $5,327 per metric ton, after hitting nearly $12,000 in late 2024. but chocolate makers like lindt, barry callebaut, and nestlé aren't passing savings to consumers. lindt raised prices 11.8% in the first half, leading to a 7.5% drop in sales volumes. barry callebaut's overall sales grew 5.7% despite global chocolate consumption falling 4.4%. nestlé's confectionery profit margin fell 2.8% due to higher cocoa and coffee costs.
the rally was driven by poor harvests in west africa, worsened by el niño and climate change. a strong el niño is expected in 2026-2027, though a large surplus for 2025-2026 provides a buffer. lindt has hedged cocoa at favorable prices for 2027, potentially cutting costs by 500 million swiss francs.
chocolatiers are turning to premium products and social media trends to win back shoppers. lindt's dubai-style chocolate bar, capitalizing on a viral trend, saw strong demand. the company plans to expand social media presence. nestlé also aims to invest more in influencer marketing. lindt selectively lowered prices in germany and switzerland over christmas, but barry callebaut and nestlé haven't cut prices.
why it matters: chocolate prices stay high despite cocoa easing, as companies rely on premium products and social media to offset weak consumer demand.
source: cnbc_topnews
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