Home Industry Food and beverage Despite rising cocoa prices, J...
Food And Beverage
CIO Bulletin
14 Febuary, 2024
With department stores and candy companies serving up Valentine's Day goodies, Japan's insatiable appetite for chocolate isn't being quenched by record-high cocoa prices.
Due to the weak yen, increased expenses for other materials, transportation, and energy, as well as the growing cost of cocoa beans, a major ingredient in chocolate, Japanese confectioners have been raising the price of their products. Lotte and Meiji boosted prices for chocolate in September and October, respectively.
According to a representative from Lotte, the market prices for cocoa beans have been rising steadily, and things are becoming difficult for both their company and the industry at large.
Cocoa bean futures prices reached an all-time high on Thursday on both ICE NY and ICE London. According to a report released by the Japan External Trade Organization (JETRO) in late January, futures prices have reached their highest point since the 1970s. The International Cocoa Organization (ICCO) predicted a severe decline in cocoa bean production in the 2023-24 season due to excessive rain impacting farms in Ghana and Ivory Coast. According to JETRO, the two West African nations produce almost 70% of the world's cocoa.
Meanwhile, as reported in late January, domestic wholesale sugar prices in Japan hit a 43-year high due to increased material costs. But despite growing costs, there appears to be a strong consumer desire for chocolate.
On Monday, the final day of the three-day weekend prior to Valentine's Day, the Matsuya Ginza department store in Tokyo was in full swing. Customers and sales are up from the same period in 2023, according to a buyer who works at the business, where chocolate prices have increased by five to ten percent from the previous year.