Chocolates to get pricier—or less chocolatey—as cocoa breaches historical mark
NEW DELHI : Chocolates could get more expensive, smaller (although perhaps not noticeably, a typical shrinkflation trait), or simply have less cocoa in them in a few months if cocoa prices aren’t tamed by then. These are the primary options chocolate and candy makers as well as those selling cookies and ice creams are weighing after global cocoa prices touched record highs earlier this week. India imports a significant volume of the primary ingredient that goes into making chocolates.
Global cocoa prices breached $10,000 per tonne on Tuesday, surging by over 100% in 2024 alone, due to a supply shortfall from key producers Ivory Coast and Ghana. Regions in West Africa produce 70% of the world’s cocoa. Industry experts say the sharp price escalation will hurt both mass market producers such as Nestle, Mondelez, Amul, ITC and Mars that operate in India’s $2.2-billion chocolate market, as well as specialty chocolate makers that source cocoa beans locally.
“There will be a significant correction in terms of the price because the raw material costs are high. We will naturally have to pass that on to consumers," said Devansh Ashar, co-founder and chief chocolate maker at Pascati. Pascati works with Fair Trade Alliance Kerala to source its Malabar Hills-origin cacao—the pods from which cocoa is derived.
The brand sells chocolate bars (75 grams) priced upwards of ₹280. It also sells cocoa butter and cocoa powder. A spokesperson for Nestle India said the maker of Kit Kat chocolates is “monitoring the situation".
Read more on livemint.com
