The global rise in cacao prices is driven by a severe shortage, primarily due to climate change-induced droughts in West Africa, which accounts for about 80% of the world’s cacao production. The International Cacao Organization (ICCO) forecasts a nearly 11% decline in global cacao supply for the 2023-2024 season.
However, the crisis extends beyond weather-related challenges. Chronic underinvestment in cacao farms has left smallholder farmers struggling to earn a living wage, with limited resources to reinvest in their land. This has resulted in lower yields over time, aging cacao trees, and a market where growers receive a disproportionately low share of the value chain.
The impact is being felt across the industry, with cacao prices hitting record highs and chocolate brands facing increased costs. These challenges have led to price hikes and shrinkflation, affecting consumers worldwide. The ICCO emphasizes that achieving a sustainable cacao economy is essential, requiring solutions that address both cacao industry must consider these complex factors to ensure a stable future for producers and consumers alike.
For those interested, daily cacao prices are available on the ICCO website.
INFRA Member Update: Chocolate Price Increases
INFRA has been receiving price increase notifications from our chocolate partners. To streamline access, we’ve created a folder in Vendor Updates titled “Chocolate Price Increases.” You can access it here.
Previously Communicated Price Increases:
What Can You Do Before Prices Increase?