Rise in Chocolate and Coffee Costs: This Could Be Just the Start, Indicates INSEE
Feeling the Brunt of Increased Cocoa and Coffee Prices
In 2024, the costs of two beloved staples, cocoa and coffee, skyrocketed to unprecedented levels. These prices soared, reaching levels four to five times higher than in 2019 - a difficult pill for many French households to swallow. The average French citizen, who consumes 12.5 kg of chocolate annually and buys approximately 5.4 kg of coffee, felt the pinch as a result[1].
Why did this happen? Climate change and labor shortages affected cocoa production, intensifying market volatility[4]. Additionally, despite an 8% increase in cocoa production during the 2024/25 season, supply remained constricted, sustaining upward pressure on prices[3]. The cocoa market witnessed an historic price surge, with prices reaching nearly $13,000 per ton in December 2024 - more than twice the prior record set in 1977[3][5].
Meanwhile, coffee prices also climbed significantly in 2024, increasing by 38.4% throughout the year, though prices eased slightly by mid-2025. The exact causes for this rise are less well-defined, but weather conditions, geopolitical factors, and demand trends generally influence coffee prices[1].
The manufacturing sector bore the brunt of these high prices. Companies like Mondelēz International (owners of Milka, Toblerone, and Cadbury) predicted a 10% drop in adjusted earnings per share due to the escalating cost of raw materials[3]. Manufacturers then passed these increased costs on to consumers, leading to higher retail prices for chocolate and cocoa-based products in France[3].
This market panic also led to potential industry adjustments, with manufacturers considering product reformulations or downsizing to offset costs. French consumers faced tightened market conditions and increased prices for these coveted commodities throughout 2024 and early 2025[1][3][4][5]. So, the next time you reach for a cup of coffee or a piece of chocolate, remember the global forces at play!
Interesting Facts- The sharp rise in global cocoa and coffee prices in 2024 predominantly resulted from climate change effects impacting crop yields and labor shortages in producing countries, supply constraints despite increased production, and long-term market trends[4][5].- Cocoa futures surged beyond previous all-time highs in 2024, reaching nearly $13,000 per ton in December - more than double the prior record set in 1977 at just over $5,100 per ton[3][5].- French consumers faced higher prices for chocolate and related goods, as manufacturers adjusted to the surging commodity costs[3].- The record cocoa price induced market-wide concern about cost inflation effects, signaling that French consumers and industries would feel the pinch through increased prices, product reformulations, or downsizing[1].
Due to the significant increase in cocoa and coffee prices in 2024, many French households had to reconsider their lifestyle, particularly in food-and-drink spending as these commodities became more expensive. As a result, manufacturers, such as those producing chocolate and coffee products, faced financial challenges due to the escalating cost of raw materials, leading to adjustments in product offerings and increased retail prices.
