February 14, Valentine’s Day, is the day of love, at least for some, if not for a lot around the world. The day has left a palpable impression on the larger social fabric of the world across borders and seas.
As of 2025, the V-Day is just 2 days away. And, one of the most platitudinous things about the day is the affectionate gifting of chocolates to one’s valentine.
Cocoa Beans Are Expensive
The cocoa bean, which leads to the making of this crucial element, that is ‘the chocolate’, was priced at USD 5,949 per metric tonne (ICE US Cocoa) in February 14, 2024. This has shot up significantly in the span of just about a year.
The price of cocoa as of February 12, just two days before Valentine’s day is pegged at USD 10,111 per metric tonne, according to the latest trends from Reuters.
This marks an increase of close to 70 per cent in the value of the raw material, that is used in the manufacturing of one of most consumed food items in the world in the period of a year.
This, however, is a relatively subdued rise, compared to the price of cocoa during Christmas of 2024, which was barely a couple of months ago. In December 2024, the price of this sweet (it is not sweet) gold had rocketed to Rs 12,565 per metric tonne.
The Great Wall of Chocolate |
Why Is It Happening?
This is happening due to a shortage in supply from the countries where cocoa is usually grown. Although American and European companies have a nearly monopoly in the confectionery market, Cocoa is largely grown West African nations. This includes Ivory Coast, Ghana, Nigeria and Cameroon.
Why Does It Matter?
Now, what does this mean? Could the price of chocolates go up? Well, it is basic economics that needs to be applied here. When there is demand that cannot meet the supply, in this case cocoa, the natural happening is a rise in price, to saturate the demand.
As a result of this, the possibility of the prices being passed down to consumers cannot be dismissed. In addition, new measures including ‘shrinkflationary’, ie reduction in the quantity or quality of products, may also be deployed.
Major corporations like Mondelez or Mars may be able to absorb the pressure for now, however, smaller traders and users of cocoa may not be able to do the same, thereby passing the cost down to the customers.
