As Easter 2024 approaches, a concerning chocolate shortage threatens to cast a shadow over the season’s celebrations. This shortage, attributed to a combination of factors including poor cocoa harvests in West Africa, is poised to impact chocolate lovers worldwide.
The Root of the Chocolate Shortage
For the past three years, the cocoa industry has grappled with underwhelming harvests, significantly driving up prices. These price hikes have put immense pressure on cocoa processors, critical in converting cocoa beans into cocoa butter and liquor for global chocolate production.
In Ghana and Ivory Coast, which together account for 60 percent of the world’s cocoa output, some processing plants are struggling to afford beans. This has led to reduced processing or complete halts in production. In Ivory Coast alone, home to half of the global cocoa supply, a leading state-run producer has ceased buying beans, processing only existing stock, highlighting the severity of the crisis.
Related: Why the UK is Facing a Tomato Shortage in 2023
Chocolate Makers Feel the Pinch
With the likelihood of a fourth consecutive poor growing season, chocolate manufacturers like Hershey and Mondelez (owners of Cadbury) are forced to raise prices to offset the rising cost of cocoa. This move is a direct response to a staggering 78 percent year-over-year drop in chocolate sourcing.
Michele Buck, the president and CEO of Hershey, announced in a statement that the company anticipates modest growth in earnings this year, attributing this to the surge in prices. However, she emphasized, “Our strong marketing plans, innovation and brand investments will drive top-line growth and meet consumers’ evolving needs.”
Climate Change and the Economic Impact
Climate change only exacerbates these challenges. Cocoa trees, highly sensitive to climate variations, are struggling with disease due to last season’s heavy rainfall. They are also now facing the harsh conditions of this year’s El Niño. The narrow geographical band conducive to cocoa growth, primarily in West African nations, is under siege by changing weather patterns, threatening the global cocoa supply.
With cocoa prices breaking records and the global supply deficit projected to increase by 405 percent from the 2022/2023 season to this season, the situation looks bleak. High prices and shrinking supplies mean manufacturers must continue to hike prices while cutting back on production, affecting both the industry and consumers.
The Consumer Effect
Due to rising prices, some analysts predict a decrease in consumer demand for chocolate, a luxury often purchased on impulse. Inflation and high prices force consumers to rethink such purchases. In response, some candy companies are downsizing their products or reducing cocoa content, attempting to navigate these turbulent times.
Consider Hershey’s newest addition to its KitKat lineup as an example of this strategy. Dubbed the Chocolate Frosted Donut, this novel Kit Kat variation is only half-coated in chocolate.
Despite these challenges, companies like Hershey remain optimistic, focusing on marketing, innovation and brand investments to drive growth. New product adaptations exemplify how companies are creatively adjusting to these constraints.
As the 2024 Easter season draws near, the chocolate shortage presents a complex challenge for both the industry and chocolate enthusiasts. Climate change, economic pressures and the delicate balance of global cocoa production play pivotal roles in shaping the future of chocolate. For consumers, the joy of indulging in Easter chocolates may come with a higher price tag, prompting a reflection on the sustainability and future of this beloved treat.
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