Cocoa prices are beginning to ease, but don't expect cheaper candy just yet as the world's biggest chocolate makers turn to social media-inspired products and other strategies to win shoppers back:
Cocoa prices reached record highs over the past two years, triggered by adverse weather conditions and poor cocoa harvests that pushed chocolate costs higher and dampened consumer sentiment:
However, the price of cocoa now appears to be falling, trading at $5327 per metric ton, down 34% over the past year:
Swiss chocolate giants Barry Callebaut, Lindt, and Nestlé all pointed to soaring cocoa prices as a drag on earnings:
Lindt reported that groupwide price increases of 11.8% led to chocolate sales volumes dropping 7.5%:
The world's largest chocolate and cocoa supplier, Barry Callebaut, noted that while global consumers are buying 4.4% less chocolate, overall sales volumes for the company grew 5.7%:
What's happening with cocoa?
Cocoa prices' volatile run was largely due to poor cocoa harvests in West Africa, worsened by climate change:
The El Niño weather phenomenon has led to adverse conditions impacting cocoa yields:
Chocolate makers, including Lindt, are looking to innovate with social media-inspired products:
Lindt recently launched a Dubai-style chocolate bar:
