Recently, due to concerns about drought and pests and diseases in major producing countries in West Africa, the global cocoa ** has tightened, and cocoa ** has repeatedly reached new highs. This situation could have a profound impact on the chocolate industry, leading to an increase in the cost of chocolate that will eventually be passed on to consumers.
According to foreign media reports, Ghana and Côte d'Ivoire are the largest cocoa producers in West Africa, accounting for 60% of the world's largest production. However, due to severe weather and the effects of climate change, cocoa production in these regions is under serious threat. According to the report by Capital Economics, recent rains and drought caused by El Niño have exacerbated crop pests and diseases, which in turn have affected the harvest. As a result, the agency** is likely to see a double-digit decline in global cocoa production this year.
Cocoa in New York and London both saw significant occurrences. Cocoa** has doubled since the beginning of last year. This increase may soon be transmitted to chocolate products, resulting in ***
Burke, CEO of North American chocolate maker Hershey, said the decline in sales could be exacerbated as consumers become more sensitive to **. He noted that the high rise in cocoa** is expected to limit the company's earnings growth this year and hinted that it will consider raising its product if necessary**. Mondelēz International, the parent company of another food giant, also said that in order to offset the soaring cost of cocoa, the company will continue to raise the premium.
Market analysts believe that although the market is already panicking about cocoa, it may climb further. Some institutions**, global cocoa** will appear as high as 37 in 2023 24A gap of 50,000 tons, which is more than double the previous number.
According to the Consumer Research Institute, chocolate has grown by 17% in the past two years, while chocolate in the U.S. was at 11% at the end of January. Analysts are likely to weaken demand as manufacturers pass on the high cost of cocoa to consumers. This means that consumers may face more expensive chocolate** and manufacturers may face the challenge of declining demand.