In the second half of 2024, the prices of Choco Flakes experienced significant fluctuations globally. The rising cost of cocoa, a primary feedstock, due to suboptimal harvests and declining output, exerted upward pressure on choco flakes prices. Major cocoa-producing regions such as Ghana and Côte d'Ivoire reported a consistent decline in production, as pests, diseases, and the El Niño weather phenomenon created farming challenges. This reduction in supply, compounded by supply chain disruptions, further escalated feedstock costs. Downstream manufacturers, including choco flakes producers, faced challenges in maintaining profit margins amid rising input costs. The limited availability of cocoa also created procurement difficulties, prompting manufacturers to reconsider formulations and reduce reliance on expensive ingredients.
Additionally, regulatory policies such as the European Union Deforestation Regulation (EUDR), which mandates that imports must be classified as deforestation-free, further restricted market access for non-compliant products. Overall, choco flakes prices remained elevated due to rising cocoa costs and constrained supply.
