The cocoa market has seen significant shifts over the past year, with cocoa prices more than doubling. This steep price increase is mainly driven by limited production, coupled with a 5% rise in demand. Alongside cocoa, the prices of palm and coconut oils have also remained high, further intensifying the cost pressures on the chocolate industry.

Key drivers behind the price surge

There are three main factors contributing to the sharp increase in cocoa prices:

1. No global stock

The cocoa market is facing a major supply crunch. Poor harvests between 2022 and 2024, combined with an increase in demand, have left the industry with no buffer to absorb price fluctuations. With very little stock in reserve, price spikes have been difficult to manage.

2. Low industry coverage

In typical years, companies secure around 60% of their annual cocoa needs in advance to ensure stable prices. However, this year, many businesses were waiting for prices to fall and only secured 30% of their cocoa needs. As a result, there’s still high demand for cocoa, contributing to its rising price.

3. Unfavorable weather conditions

In October, the outlook for the cocoa harvest seemed sufficient, provided the weather conditions remained stable. Unfortunately, unfavorable weather in November worsened the situation, reducing the cocoa yield and pushing prices even higher.

What this means for you

Despite these challenges, we remain committed to maintaining the quality and consistency of our products. At Meroso Foods, we understand the importance of offering premium chocolate truffles and other confectioneries to our customers. Rest assured, our Lemaître Belgian chocolate truffles will continue to be as delicious, generously filled, and high-quality as ever. While the market is experiencing fluctuations, we are committed to offering exceptional products that meet your standards.

We value your trust and appreciate your continued support as we navigate these challenges in the cocoa market. If you have any questions or concerns, feel free to reach out, and we’ll be happy to assist.