High cocoa prices drive up confectionery prices and losses for producers [World News]

High cocoa prices are mainly due to unfavourable weather

Cocoa prices started to rise sharply as early as the beginning of 2024, remaining high throughout the year at around three times the average level. Further significant upward fluctuations in cocoa prices were observed towards the end of the year. This is attributed to unfavourable weather conditions in Côte d’Ivoire and Ghana, in addition to prevailing diseases and theft of cocoa plants and a global shortage of cocoa stocks.

Experts believe that the situation in terms of cocoa yields could be better this year, but the weather situation in West Africa needs to stabilise. The rains are now starting to arrive in the region, raising hopes for the crop – recent weeks have been fraught with drought damage caused by the seasonal Harmattan winds, the driest in six years.

Confectionery producers talk of increased prices and reduced profits

Among others, Mondelez, one of the world’s largest confectionery producers, is talking about problems in the confectionery industry. Despite ending 2024 with a profit, the figures speak for themselves – revenue growth was 1.2%, compared to 14.4% the previous year. Analysts at the conglomerate predict that profit in 2025 could fall by up to 10%. Following significant increases in the price of cocoa, the manufacturer was forced to raise the prices of the products it offered, prompting consumers to turn to cheaper alternatives to familiar sweets. Mondelez is not the only one to suffer from the cocoa price hike – revenues in the European market in 2024 were up 3.5%, but in 2023 it was up 12.6%.

We recommend reading the article, which may broaden your knowledge: Cocoa market overview 2025 [Global Report]