Cocoa Prices Plunge 30% in 2025 After Record Surge
Cocoa prices have fallen by over 30% in 2025, reversing the significant gains of the previous year. After hitting an all-time high of $12,931 per ton in late 2024, prices closed the year with a 178.2% surge. However, this year, prices have dropped below $8,000 per ton, marking a 33% decline year-on-year, CE Report quotes Anadolu Agency
The price surge in 2024 was fueled by supply concerns, with adverse weather conditions in West Africa, weak production in top cocoa producers like the Ivory Coast and Ghana, and declining global stocks. This led to fears of a global supply shortage. Additionally, the Ivory Coast's quality issues and reduced harvests contributed to the price hike.
However, as cocoa demand weakened due to high prices, expectations of an oversupply in the coming seasons have pushed prices lower. Analysts predict an increase in cocoa production, easing supply concerns and potentially bringing prices back to more sustainable levels.
Experts also note that while last year's high prices were driven by temporary factors, improving weather conditions in West Africa and increased cocoa exports from Nigeria are helping to stabilize the market. Major chocolate manufacturers have reported that the elevated prices have been affecting demand, adding further pressure on the commodity's price.
Analysts suggest that although cocoa prices might see short-term fluctuations, the overall trend is expected to be downward as production improves in the coming seasons.
