Navigating the Cocoa Market: An Update on Chocolate Pricing

At Master Chocolat, we are proud to be a boutique chocolate company dedicated to crafting exquisite, artisan confections. As we navigate the ever-changing cocoa market, we want to share a few insights into the factors that are influencing our industry.

The global market for cocoa and chocolate has faced significant challenges over the past year, with cocoa prices experiencing increases of up to 30%. Factors such as adverse weather conditions, supply chain disruptions, and rising production costs have all contributed to these price hikes. For instance, the International Cocoa Organization has reported that cocoa prices reached their highest levels in over a decade.

Currently, the chocolate industry is facing challenges due to a significant shortfall in cocoa production. For three consecutive years, global consumption has outpaced production, leading to a supply crisis. Predictions for the December 2024 cocoa crop are concerning, as industry experts expect these shortfalls to continue, making it difficult for the market to catch up. The unique nature of cocoa farming means that yields are heavily dependent on weather conditions, and it is historically rare to experience such prolonged shortfalls. This past year, excessive rainfall (El Nino) has further complicated production, raising concerns among farmers about the stability of future crops.

Speculation in the market has also contributed to the volatility of cocoa prices, with many in the industry predicting that high prices may persist for quite some time. In addition, rising cost pressures on farmers have made it increasingly challenging for them to afford necessary inputs like fertilizers, further affecting production capabilities.

At Master Chocolat, we are dedicated to ethical sourcing practices. As a certified Fairtrade organization, we prioritize purchasing directly from certified suppliers, ensuring that farmers are paid fairly— and because we value our partnerships, we always pay a premium above the going market rate (up to 15%) directly supporting the livelihoods of cocoa farmers and their communities.

As a result of these complex factors, we have made the decision to slightly raise the prices on our chocolates. Our founder, Bernard Callebaut, has consistently emphasized the importance of maintaining quality in the face of rising costs.

We appreciate your understanding and continued support as we work to deliver the finest chocolate experiences amidst these challenges and as our industry navigates these challenging times, it's not uncommon for larger companies to resort to using less expensive ingredients, a practice known as "skimpflation," leading to a reduction in quality. However, for us at Master Chocolat, altering the integrity of our products is simply not an option. As Bernard firmly puts it, “No — no, that is a no-go. I have been making chocolate for 41 years and quality is paramount.”