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Price of Cocoa Butter Threatens Holiday Chocolate Market

According to recent reports, high demand and tight supplies of cocoa butter may increase the price of chocolate this holiday season.

The Huffington Post explains that “Increased demand from Asia’s expanding middle class and a turnaround in sales in big consuming countries have seen butter prices nearly double to more than $7,000 a tonne from $4,000 a tonne six months ago.”

Although chocolate makers claim that hiking prices is a last resort, some may have no choice by to pass the additional expenses on to customers. Some smaller companies are already doing just that.

“We have increased our chocolate prices by 30 to 40 percent since January and most of our customers are not happy about it,” said Richard Lee of Aalst Chocolate, a chocolatier based in Singapore. “With the festive season just around the corner, the price of (cocoa butter) will rise even further and surely hit the bottom line of chocolate makers,” he said.

Learn more with Fred Katayama of Reuters:

 

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