Soaring Cocoa and Sugar Prices Make Chocolate Treats a Luxury

Indulging in that sweet chocolate treat is becoming a pricey affair.

Chocolate lovers are feeling the pinch in 2023, with significant hikes in essential ingredients like cocoa and sugar costs.

Cocoa prices have surged to their highest since the mid-1970s, and sugar hasn’t been this expensive in a decade.

This upward trend is making chocolates pricier at stores, prompting even the most devoted chocolate fans to reconsider their purchases in the confectionery section.

Since 2021, chocolate prices have surged by 20%, as per data from consumer intelligence firm Nielson IQ, supported by analysis from Reuters. 

While candy enthusiasts continued their chocolate purchases initially, the latter half of 2023 might see a shift as budget constraints become more pressing for shoppers.

In a recent earnings discussion, Luca Zaramella, Mondelez’s chief financial officer, highlighted the significant price hikes. “The surge in prices for sugar and cocoa is significant. Over the past year, we’re looking at a potential increase of over 30%, especially in cocoa,” he stated.

However, there’s a silver lining for chocolate lovers. After years of escalating U.S. wholesale import expenses, chocolate prices might stabilize just in time for the festive seasons like Halloween and Christmas.

Selina Wamucii, a platform specializing in food and agricultural produce sourcing, observed in a recent report, “From 2017 to 2021, the import price per kilogram of chocolate into the U.S. rose from $4.98 to $5.23, marking a 5.2% increase. The peak was in 2021 at $5.25, while 2012 saw the lowest at $4.14. The five-year average stands at $5.09.” 

Selina anticipates stability in the coming years, projecting prices of $5.27 in 2023 and $5.30 in 2024.

Such stability would be a relief for consumers. For instance, a Mars bag of Snickers jumped from $5 in 2021 to $12 in 2022. A 10.36-ounce bag of Snickers is priced at $13.95 on Amazon.com.

Other candies are also pricier. Skittles saw a 42% price hike since 2021, Hershey increased its prices significantly, and Halloween candies were 34% costlier in 2022 compared to 2021. This trend is expected to persist for the upcoming Halloween season in 2023.