Cocoa market in 2024: a slump that will shake up the industry

Kinga Wiśniewska
4 min reading
Cocoa market in 2024: a slump that will shake up the industry
Table of contents
  • Challenges in the market

The year 2024 proved to be an extremely challenging time for the global cocoa market, particularly in West Africa, which dominates cocoa production. The region, accounting for around 80% of global supply, has struggled with a series of catastrophic weather and epidemiological events. Droughts caused by the Harmattan phenomenon and excessive rainfall associated with the La Niña cycle have significantly reduced yields. In Ghana, one of the world’s largest cocoa producers, yields fell dramatically to 580,000 tonnes. In addition, plantations were hit by epidemics such as the swollen shoot virus and black pod disease, which forced farmers to uproot and destroy infected trees.

These challenges have resulted in cocoa prices rising to historic highs, approaching $10,000 per tonne by early 2024. This increase had direct consequences for producers of chocolate and other chocolate products, forcing them to raise retail prices and seek alternative sources of raw material.

At the same time, consumer awareness of the ethical aspects of cocoa production is growing. Fair Trade certifications, which guarantee fair working conditions for farmers, are gaining importance as tools to promote social and environmental responsibility. In the face of these challenges, it becomes crucial to introduce sustainable production practices that are both more resilient to changing weather conditions and more beneficial to the environment and local communities.

Challenges in the Cocoa 2024 market

“In 2024, the cocoa market is facing significant challenges, which have driven significant price increases in global markets. Recent reports show that record price levels and market volatility are prompting profound strategic changes among producers and processors. Today, more than ever, it is important to be flexible and innovative in our approach to minimise risk. This situation is also a testament to our adaptability and the effectiveness of our long-term planning, as we have been able to quickly adapt our operations and supply strategies despite the market turbulence.” – comments Marcin Stradowski of Foodcom S.A

Foodcom S.A. has been closely observing and analysing the food raw material market for years, gaining the valuable experience necessary in the commodity trading industry. As a result, it offers a wide range of cocoa commodities, ideal for various applications. The range includes:

These products are used in various sectors of the food industry, from the production of chocolates, biscuits and beverages to ice cream and baked goods. In addition, cocoa butter is also widely used in the cosmetics industry due to its beneficial properties. Cocoa products are prized for their rich taste, aroma and health properties, making them an indispensable ingredient in many products.

Despite the challenges in the market, Foodcom S.A., thanks to its extensive experience and flexibility, is able to respond quickly to changing market conditions, offering stability and reliability. Cooperation with leading manufacturers allows Foodcom S.A. to provide products that meet the highest quality standards and respond to customer needs. Operating on the basis of values such as trust, innovation and quality, it relies on long-term relationships with customers and business partners.

Learn about “Cocoa Alkalised Powder”
Kakao Alkalizowane