Shrinkflation and the effects of the global chocolate crisis were noticeable during Easter earlier this year.
Confectionaries and customers alike are making more sacrifices and purchasing less due to the staggering cost increases.
In April, chocolate prices were 60% higher than the previous year. The cost of cocoa beans hit $9.74/kilogram.
In comparison, cocoa beans were $2.20/kilogram in 2019. Halloween candy costs $10 more per bowl than in 2023 and, due to shrinkflation, the candy is also smaller.
Climate change and extreme weather patterns in West Africa triggered the coco shortage.
Almost 70% of the world’s cocoa comes from cocoa beans grown there. The troubling weather swept bean disease across, which could reduce production by 14%.
Corporations are dealing with the injured crops and costs by minimizing the size of chocolate bars and putting less candy in each package.
Big companies like Nestlé, Mondelēz, and Hershey Co. have reported declining sales yet are still profiting by applying these shrinkflation tactics.
In contrast, cocoa producers are losing the most from the damaged crops, not to mention the destruction of the surrounding land due to deforestation for high-volume production.
Many of the farmers struggle to afford the equipment and resources they need to operate on a basic level. Millions of cocoa farmers endure hard labour under intense weather conditions but barely earn a living wage.
They earn an average of 6% of the final value of a bar of chocolate.
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