Commodities

Near Record High Cocoa Prices Are Destroying Chocolate Demand

  • JPMorgan analysts trim forecast for cocoa deficit in 2024-25
  • Chocolatiers to keep hiking prices in 2025 on higher costs

Hand-made chocolates in Paris.

Photographer: Cyril Marcilhacy/Bloomberg
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Rising chocolate prices will hurt demand this year, resulting in a smaller than anticipated supply shortfall, according to JPMorgan Chase & Co.

The bank’s analysts trimmed their deficit estimates for the current 2024-25 season to 40,000 tons, from their autumn forecast of 108,000 tons. That’s mainly because they expect demand to fall by at least 1.8% as historically high cocoa prices dent consumption.