Why Chocolate Will Soon Be Very Expensive
Chocolate candy prices have been on a rise. But, very soon it will be a trivial compared to what's ahead. Cocoa prices rose 4x - 5x times over the last year. While there are many factors behind this increase, one thing is clear: chocolate we love so much will get very pricy. In this video, let's delve into the delicious world of chocolate and understand how cocoa market is working, including the history of chocolate, its supply and demand.
Chocolate is made from cocoa beans, which are fermented, roasted and ground before they turn into cocoa butter and powder. World market prices for cocoa beans spiked in 2023-2024. The main factor is bad weather and rampant cacao tree diseases in Africa.
But, there are also more serious structural issues ahead that will impede the supply of cocoa. These include heavy involvement of governments in Ghana and Ivory Coast as well as upcoming EU deforestation regulation. All this threatens the supply of cocoa and will make chocolate prices higher for longer. Watch this video to learn why.
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Timestamps:
00:00 - Intro
00:30 - History of Chocolate
04:24 - Top Producers of Cocoa
05:56 - Factors Keeping Cocoa Prices (and Chocolate) High
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