This year, Easter celebrations for many Americans will be marked by significantly higher chocolate prices due to skyrocketing cocoa costs, influenced by climate-related challenges in West Africa and U.S. tariffs. Last year, consumers spent $5.4 billion on Easter candy and the cocoa deficit is projected at over 400,000 tons, resulting in a steep increase in cocoa prices. Hershey, the U.S.'s largest chocolate producer, has faced difficulties in consumer demand and reported its worst profits in seven years as chocolate's price sensitivity limits alternatives for consumers.
In 2023, farmers in west Africa, where 70% of the world's cocoa is harvested, started to struggle with climate-related crises, including drought and plant disease.
Estimates put the cocoa deficit at over 400,000 tons, significantly inflating the price of cocoa over the last few years.
Chocolate is particularly sensitive to price increases because it's an item in the grocery store that doesn't really have any substitutes.
Hershey, the biggest chocolate producer in the United States, raised the prices of its chocolates last year and ultimately struggled to maintain consumer demand.
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