Cocoa Powder Price Trend and Forecast

Cocoa Powder Regional Price Overview

Get the latest insights on price movement and trend analysis of Cocoa Powder in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Cocoa Powder Price Trend for the Q2 of 2024

In the second quarter of 2024, cocoa powder prices continued to surge globally, reaching unprecedented levels primarily due to prolonged dry weather conditions adversely affecting crop yields in key producing regions of West Africa, notably Ghana and Ivory Coast. This climatic challenge led to significant supply constraints, intensifying the existing deficit between demand and production. The ripple effects of these supply shortages were profoundly felt across various sectors, with major chocolate manufacturers experiencing squeezed profit margins and contemplating further price adjustments to offset rising production costs.
 

Cocoa Powder Price Chart

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Consumer markets, particularly within the European Union, witnessed noticeable inflation in cocoa powder prices, with most member countries reporting substantial increases that outpaced general food and drink inflation rates. These escalating prices impacted consumer purchasing behavior, leading to reduced spending on confectionery products as households adjusted to the higher costs. Despite some regions experiencing a moderation in price hikes towards the end of the quarter, the overall trend remained upward, underscored by persistent supply challenges and robust demand from both consumers and industrial users.

A few countries managed to buck the trend, recording slight decreases in cocoa powder inflation rates attributed to specific local market conditions and effective supply chain adjustments. However, these instances were exceptions in a global context dominated by supply-induced price pressures. The situation underscored the vulnerability of global commodity markets to environmental factors and highlighted the need for adaptive strategies to manage such volatility.

Stakeholders across the supply chain, from farmers to retailers, grappled with the complexities of balancing supply, demand, and pricing in an environment marked by uncertainty and external pressures. The quarter's developments signaled a complex interlinking for the cocoa industry, prompting discussions on sustainable farming practices, diversification of supply sources, and strategic reserves to mitigate future risks associated with climate variability and market fluctuations.

Analyst Insight

According to Procurement Resource, the price of Cocoa Powder is expected to be influenced by the growing concerns among consumers regarding the fluctuations in the supply of the commodity.
 

Cocoa Powder Price Trend for the Q1 of 2024

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Cocoa powder prices were found to be rapidly surging throughout the first quarter of the year 2024. The price of cocoa reached a record high of over $10,000 per metric ton in March’24, more than double the price in January and nearly five times the price in March 2023. Chocolate manufacturers like Hershey and Mondelez plan to increase prices and modify product sizes in response to rising costs.

The surge in cocoa prices is primarily attributed to poor crop yields in West Africa, major producing countries Ivory Coast and Ghana, exacerbated by El Niño-induced warmer temperatures and heavy rains, leading to the spread of black pod disease. This severely tightened the supply situation in the international markets, pushing the cocoa powder market rates to record highs. Overall, a surging price trajectory was observed for cocoa powder during the said time.

Analyst Insight

According to Procurement Resource, Cocoa Powder prices are likely to maintain their surges in the coming months as well. Since the supply situation is not improving and the demands are also rising, the price trend is projected to remain elevated.

Procurement Resource provides latest prices of Cocoa Powder. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.