🍫 Why is Chocolate so expensive?

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The Global Chocolate Crunch

In short

Wild swings in cocoa prices are putting chocolate manufacturers around the world under pressure, from Britain's Cadbury to Switzerland's Lindt and America's Hershey. With supply disruptions threatening future harvests, businesses face difficult decisions over pricing, ingredients and how to protect their profits.

What's going on?

• Cocoa prices have been on a rollercoaster. Bad weather and crop diseases in Ghana and Côte d'Ivoire, which produce 60% of the world's cocoa, pushed prices to $12,565 per tonne in December 2024. Prices later collapsed before rebounding to around $5,645 in October 2026.
• Chocolate is getting more expensive. US Halloween chocolate prices have reportedly risen 15.5% year-on-year. British shoppers have also faced higher prices and smaller products, although UK chocolate prices fell 3% in early October following earlier increases.
• Manufacturers are changing strategy. Lindt raised prices by 11.8% in the first half of 2026, while sales volume and mix fell 7.5%. Meanwhile, Hershey has experimented with cheaper ingredients and expanded into salty snacks to reduce its reliance on chocolate.
• Supply concerns are returning. Ghana expects cocoa production to fall 13% in 2026-27, while Côte d'Ivoire also faces weaker harvest forecasts. Meanwhile, stronger demand in Europe and Asia could put further pressure on prices.

Why does this matter?

• Higher prices don't always mean higher profits. Manufacturers must choose between passing rising costs onto customers or accepting lower profit margins. Raise prices too much, and shoppers may switch to cheaper alternatives, as Lindt's falling sales volumes illustrate.
• Supermarkets could gain bargaining power. Retailers like Tesco and Walmart can promote cheaper own-label chocolate and pressure suppliers to keep prices competitive. That could force manufacturers, particularly smaller brands, to absorb more of their rising costs.
• Planning ahead is getting harder. Manufacturers often buy cocoa months in advance, meaning falling commodity prices don't immediately translate into lower costs. Meanwhile, reduced earnings for cocoa farmers could weaken future harvests, creating further supply uncertainty.

How does this impact Law Firms?