Here’s one reason to be glad you’re single this Valentine’s Day: Chocolate is pricier than ever.
“If you haven’t done your Valentine’s Day shopping yet, brace yourself for some sticker shock when picking out chocolate,” wrote chief technical strategist for LPL Financial Adam Turnquist in a note today. “Cocoa, a key ingredient in chocolate, surged 166% last year due to adverse weather conditions in West Africa, which accounts for around 80% of the global cocoa supply, according to Bloomberg.”
Cocoa was the best-performing commodity on the market last year, and now shoppers are paying the price: The cost of a king-size two-pack of Reese’s Hearts jumped 13% year over year in February, while the price of a 10.8 oz pack of milk chocolate Hershey Kisses has risen 12% since last January.
The rising cost of this commodity is partly why Hershey reported a drop in earnings last quarter, even after hiking the prices of candy in checkout lanes.
Don’t expect the holiday section of CVS to get cheaper anytime soon. The weather conditions that created the cocoa shortage haven’t let up—and on top of that, many manufacturers purchase cocoa roughly a year in advance, so chocolate could get even more expensive next year to reflect current prices.
“Despite hopes for a better crop in the 2024/2025 season, cacao prices look set to remain high,” wrote JPMorgan agricultural commodities strategist in a note. “This could in turn impact the chocolate market, with confectionary prices likely to increase in 2025.
Broken chocolate hearts
Now, we’re not here to give relationship advice—but if you’re considering using skyrocketing cocoa prices as an excuse to skip getting your significant other a gift this holiday, think again. According to the National Confectioners Association, 92% of people said they would love to receive chocolate or candy for Valentine’s Day, so get ready to open up your wallet for your significant other.
And don’t even get us started on Easter—the combination of rising chocolate prices and record-breaking egg prices spells trouble for anyone hoping for a full Easter basket this April.—LB
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