Global crisis: why cocoa prices have risen so explosively since 2022

Perhaps you've noticed, but the prices of ceremonial grade cacao have increased. The same applies to all chocolate-related products.

Why?
Because we are in the midst of a global crisis regarding the beautiful cacao market.

So what is the reason that cacao prices have risen so explosively since 2022?
This year alone, we are looking at a price increase of 250%

I am not an expert in economics, which is probably an advantage for providing a more simplified explanation. But I think it's important to convey the understanding that there are factors at play that are out of our hands, as it involves global trends, trading psychology, and climate.

Global cocoa prices have risen significantly in 2024 due to a combination of climate change, market unpredictability, and increased production costs. Even in countries like Peru, which traditionally have not been as affected by climate disasters as West Africa, a clear price increase is seen.

Since winter 2023 alone, the global price has doubled.

A little more detail on the reasons for the price increase (can also be listened to in the podcast episode further down):

Climate, production costs & market speculation

In 2024, cocoa prices have risen significantly globally, and the reasons are complex. One of the main factors is climate change, especially in West Africa, which accounts for two-thirds of the world's cocoa production. Regions like Ivory Coast and Ghana have experienced severe drought, which has drastically reduced crop yields. In addition, the El Niño phenomenon has contributed to extreme weather, making cocoa cultivation even more difficult.

Production costs

Another factor is rising production costs, affecting everything from fertilizer to energy, forcing farmers to raise prices. At the same time, the supply chain is disrupted by logistical challenges, especially due to global uncertainty, and this has caused longer delays and higher transport costs.

Market speculation

In addition, market speculation plays a role. As supply falls and demand remains stable or rises, investors have speculated in the cocoa market, reinforcing price increases. Cocoa from Peru, which has not been as severely affected by climate change as West Africa, is also experiencing price increases, primarily due to global market dynamics. Although Peru has traditionally had stable crop yields, the country's export prices are affected by the overall global price development.

What does the future look like for global cacao?

Overall, these conditions are expected to continue to affect cocoa prices for the rest of 2024 and 2025. Stability may eventually come, but that depends on whom you ask regarding climate change and how it affects consumers and those trading in cocoa.

I want to continue providing you with quality ceremonial grade cacao
Where you know that your cacao is 100% in order, the documentation, the people behind it are valued with fair trade and a safety net.

Transparency, respect, and immense love for Mother Earth for her gift to you and me. So your ceremonial cacao arrives here under the greenest possible measures for us, so we can honor our common mother - Mother Earth.

Therefore, I will follow this price increase in the global market so I can continue my work in this way.

Perhaps this price increase can remind us how valuable Ixcacao is and truly dedicate ourselves to our time with her.

I have also created a podcast episode where I cover:

• Which 3 factors contribute to the global change
• How future prospects are speculated to be

You are always very welcome to write to me if you have any questions or anything else.

My Instagram:  @camillescacaolove  
My email: info@camillescacaolove.com  🤎

In love,

Camille