Charles Esther
Global cocoa prices remain near record highs, pushing chocolate prices upward and making cheaper chocolates unlikely for South African consumers this year.
According to BusinessTech, South Africa’s overall inflation is within the Reserve Bank’s 3% to 6% target range.
However, food and non-alcoholic beverage inflation rose to 4.0% in April 2025.
Within this category, sugar, confectionery, and desserts saw sharper price increases, rising 5.6% year-on-year.
Chocolate prices alone jumped 6% during the same period.
Over a longer time frame, the price increases are even more significant.
A standard chocolate slab now costs nearly 27% more than it did in 2023.
Similarly, the price of a chocolate bar has increased by 18.6%.
Global Cocoa Prices Reach Historic Highs
The surge in chocolate prices is directly linked to soaring global cocoa prices.
Cocoa prices have increased by almost 300% in the past year.
In December 2024, cocoa reached a record high of $12,565 per metric tonne.
This spike is largely due to extreme weather and disease damaging cocoa crops in Ghana and the Ivory Coast.
Together, these two countries produce about two-thirds of the world’s cocoa supply.
Although exports from the Ivory Coast briefly increased earlier this year, temporarily easing prices, the government later warned of tighter supply, reversing the trend.
Now, concerns over the quality of the ongoing mid-crop are pushing prices higher again.
Reuters analysts report that cocoa processors are rejecting truckloads of beans due to poor quality.
About 5% to 6% of mid-crop deliveries are rejected, compared to just 1% during the main crop.
Erratic rainfall has led to this decline in quality and could cause cocoa yields to drop 9% from 2024 levels.
Producers Brace for More Price Hikes
Major chocolate manufacturers are feeling the pressure.
Mondelez International, owner of Cadbury and Oreo, has acknowledged “unprecedented cocoa cost inflation” in recent forecasts.
The company warned that further price increases may be necessary if cocoa prices remain elevated.
Nestlé and other global producers have also hinted at future price hikes due to cocoa shortages and rising input costs.
Tiger Brands Plans to Exit Chocolate Business
South African company Tiger Brands, owner of Beacon and the popular marshmallow Easter eggs, is looking to sell its chocolate division.
The company cited decades of underinvestment and a limited strategic focus in the chocolate sector.
Tiger Brands admitted it had failed to keep pace with competitors like Cadbury.
It acknowledged not having actively engaged with the Beacon brand or updated its technology in over 30 years.
Tiger Brands will continue supporting Beacon until a suitable buyer is found.
The company believes new ownership could improve the brand’s performance and market position.
What’s Next for South African Chocolate Prices?
With global cocoa prices remaining high and supply issues ongoing, South African consumers should expect chocolate prices to stay elevated.
The combination of inflation, supply challenges, and corporate restructuring points to continued price pressure.
