Cocoa Prices Fall, But Chocolate Makers Cautious Amidst Demand Issues

Despite a significant drop in cocoa futures from their December 2024 peak, chocolate makers are still hesitant to lower prices due to ongoing demand destruction and processors working through beans bought at higher costs. European cocoa processing in the fourth quarter likely fell, marking an 11-year low, with similar trends in Asia. While futures have halved, they remain historically expensive, leading consumers to reduce purchases and manufacturers to use substitutes. Cheaper cocoa is not expected to reach supermarkets until late 2025, as current high prices continue to depress demand.