Cocoa Butter Price Trend and Forecast

Cocoa Butter Regional Price Overview

Get the latest insights on price movement and trend analysis of Cocoa Butter in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Cocoa Butter Price Trend for the First Half of 2024

In the first half of 2024, cocoa butter prices experienced a sharp rise due to a combination of global supply shortages, underinvestment in cocoa farms, and increased investor speculation. The primary cocoa-producing region of West Africa faced severe droughts caused by climate change, which significantly reduced yields and contributed to a broader global cocoa supply decline. These structural issues, exacerbated by aging cocoa trees and a lack of reinvestment in farming infrastructure, have put additional strain on the market.
 

Cocoa Butter Price Chart

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As demand for cocoa butter remains high, chocolate manufacturers have been forced to grapple with rising production costs, passing these on to consumers through price hikes and product shrinkflation. This, in turn, has led to shifts in consumer behavior, with some opting for alternative snacks over chocolate. To mitigate these impacts, chocolate brands have turned to recipe innovations, such as reducing cocoa content by incorporating more fruits and nuts. However, the outlook for cocoa butter prices remains uncertain as the market awaits improved weather conditions and enhanced farming practices that could stabilize supply. Until then, the market is likely to remain volatile, challenging manufacturers and consumers alike to adapt to ongoing price pressures.

Analyst Insight

According to Procurement Resource, not much relief is in sight for Cocoa Butter prices; further, the prices are expected to remain on the growing trajectory in the coming months.
 

Cocoa Butter Price Trend for the Second Half of 2023

Cocoa butter comes from cocoa seeds, so the market trends are observed to be in close alliance with each other. During the said period of H2’23, the cocoa butter prices continued their inclined price trajectory with even more steepness. The unseasonal rainfall patterns and the El Nino weather changes reflected badly on the cocoa crop.

The ports in Ivory Coast, the primary cocoa-producing region in the world, noticed around 33% decline in the available supplies in the month of November. Meanwhile, growth for cocoa butter has been on the rise from the beauty, flavor, aroma, and cosmetic industries.

Ghana’s cocoa production, too, fell to a 13-year record low. Both these regions of Ghana and Ivory Coast constitute around 70% of global cocoa supplies. Hence, owing to limited supplies and rising demands, cocoa butter prices surged throughout the discussed time period.

Analyst Insight

According to Procurement Resource, given the current supply and demand attributes, the Cocoa Butter price trends are likely to surge even further in the coming months.
 

Cocoa Butter Price Trend for the First Half of 2023

Cocoa Butter is extracted from the cocoa seeds after removing its cover. Cocoa Butter is rich in chocolate flavor and aroma and is essentially used in chocolate production along with chocolate-based cosmetic products. So, the chocolate/cocoa price trend are direct reflectors of the Cocoa Butter price trend as well.

During the discussed time period of H1’23, Cocoa Butter prices remained on an inclining trajectory. The increased price trend were a direct result of a mismatch between the market dynamics and pricing fundamentals. The recession mounted in Europe after Russia’s armed invasion of Ukraine, which caused the European suppliers to become hesitant and ordered less, limiting the supplies. Further, high fertilizer costs and the drought-like situation in Africa suppressed crop yields, directly impacting the price trend for Cocoa Butter.

Analyst Insight

According to Procurement Resource, given the El Nino phenomenon, reduced rainfall is expected to lower the Cocoa productivity further; thus, the Cocoa Butter prices are expected to rise in the upcoming months as well.

Procurement Resource provides latest prices of Cocoa Butter. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.