Chocolate prices remain high despite falling cocoa costs

Chocolate prices have not fallen, even though cocoa costs are dropping after two years of record highs. Bad weather and poor harvests pushed cocoa prices up sharply. The cost more than doubled in a single year. Companies like Lindt, Nestlé, and Barry Callebaut raised their prices because cocoa cannot be replaced with a cheaper ingredient. Consumers responded by buying less chocolate. Global consumption fell by 4.4% in one recent quarter compared to the year before. Now that cocoa is becoming cheaper, shoppers are asking why retail prices remain high. Chocolate makers have not yet passed the savings on. Barry Callebaut did report that its sales volumes grew 5.7% in the latest quarter, the first positive growth in more than two years.