Why is Cacao Expensive

Why Is Cacao So Expensive?
Understanding Global Price Trends and the Value of Ethical Sourcing

At Seleno Health, we’re passionate about bringing you the finest ceremonial cacao, sourced with intention and respect for both people and the planet. But if you’ve noticed the price of cacao creeping up, you’re not alone. Between 2023 and 2025, cacao prices soared to unprecedented levels as global markets faced a perfect storm of challenges. Prices have eased through 2026, but they remain well above historic norms. In this article, we’ll explore why cacao is becoming so expensive, dive into the global price trends over the last 50 years, and highlight why choosing quality, safety-tested, ethically sourced, and sustainable cacao is more important than ever.

The Perfect Storm: Why Cacao Prices Skyrocketed

Cacao prices surged dramatically, reaching record highs of over $12,000 per tonne in late 2024, around triple the price of a year earlier. This spike is driven by a combination of environmental, economic, and structural factors, particularly in West Africa, which produces over 80% of the world’s cacao.

Here’s a closer look at the key drivers:

1. Climate Change and Extreme Weather: Cacao trees thrive in a narrow equatorial band, requiring specific conditions of heat, humidity, and rainfall. Climate change has disrupted these conditions, with phenomena like El Niño bringing excessive rainfall and heatwaves to West Africa. In 2023, heavy rains in Ghana and Côte d’Ivoire exacerbated diseases like the swollen shoot virus and black pod disease, reducing yields by up to 50% in affected areas. The International Cocoa Organization (ICCO) projects a global shortfall of 374,000 tonnes for the 2023-2024 season, compounding two previous years of deficits.

2. Disease and Aging Plantations: The cacao swollen shoot virus (CSSV), spread by mealybugs, has devastated crops in West Africa, with no chemical treatment available. Infected trees see yield declines of up to 25% in the first year and 50% in the second, often requiring removal. Aging cacao plantations, many of which have not been adequately reinvested in, are also less productive and more vulnerable to pests and diseases.

3. Structural Challenges and Low Farmer Incomes: In countries like Côte d’Ivoire and Ghana, where cacao farming is often nationalized, farmers receive fixed prices that are often too low to support reinvestment in their farms. This perpetuates a cycle of poverty, limiting resources for soil health, new trees, or disease management. The lack of financial resilience makes it harder for farmers to adapt to climate and disease challenges.

4. Regulatory Shifts and Sustainability Demands: The European Union’s Deforestation-free Regulation (EUDR), set to impact imports in 2025, bans cacao grown on recently deforested land. While this is a positive step for the environment, it adds complexity for West African farmers, who rely on Europe as a major market. Additionally, stricter regulations on cadmium—a toxic heavy metal found in some cacao due to soil contamination—require rigorous testing and compliance, increasing costs.

These factors have created a supply crunch, driving cacao prices to levels never seen in the history of cacao farming. Prices peaked above $12,000 per tonne in December 2024, roughly triple the level of a year earlier, signaling widespread concern about the chocolate and cacao industry’s future.

Global Cacao Price Trends: A 50-Year Perspective

To understand the current price surge, let’s look at cacao’s price history over the last 50 years. Data from sources like the Federal Reserve Bank of St. Louis (FRED) shows cacao prices have fluctuated due to supply disruptions, demand growth, and market dynamics. Below is a summary of key trends:

• 1970s–1980s: Cacao prices peaked in 1977 at around $5,500 per ton (adjusted for inflation), driven by supply shortages and speculative trading. Prices then stabilized in the $2,000–$3,000 range as production grew in West Africa.

• 1990s–2000s: Prices remained relatively low, averaging $1,500–$2,500 per ton, as global supply expanded with increased planting in Côte d’Ivoire and Ghana. However, low prices often meant farmers struggled to earn a living wage.

• 2010s: Prices hovered around $2,000–$3,000 per ton, with occasional spikes due to weather events or political instability in producing regions.

• 2020s: Prices began climbing from 2021, reached about $3,200 per tonne in 2023, then surged past $12,000 per tonne in late 2024. Improved harvests and weaker chocolate demand brought prices down through 2025 and 2026. As of early November 2026, cocoa futures trade at around $5,400 per tonne. That is about 18% lower than a year earlier, but still roughly double the 2010s average.

  Where cacao prices are heading (November 2026 update)

  The market has shifted from shortage to surplus, at least for now. Analysts estimated a global surplus of about 494,000 tonnes for the 2025/26 season, and cocoa stocks in ICE-monitored warehouses reached a 2.5-year high in October 2026.

  The outlook is less certain for 2026/27. StoneX projects global production could fall 9.6% to 4.74 million tonnes as El Niño affects Ivory Coast, Ghana, Ecuador and Indonesia, which could tip the market back into a small deficit. (Source: Trading Economics)

  Fine-flavour and ancestral cacao, like the Peruvian cacao we source, is mostly traded outside the commodity futures market. But global prices still shape farmer incomes, input costs and supply across the whole industry.

Why Quality, Safety, and Ethics Matter More Than Ever

As cacao prices soar, the temptation to cut corners on quality or sourcing practices grows. However, at Seleno Health, we believe this is a critical time to double down on choosing cacao that is safe, high-quality, ethically sourced, and sustainable. Here’s why:

• Quality and Flavor: High-quality cacao, like our ceremonial-grade beans, offers unparalleled flavor and health benefits, rich in antioxidants, magnesium, and flavonoids. The Cocoa of Excellence Programme emphasizes standardized quality assessments to ensure beans meet sensory and chemical standards, enhancing the consumer experience. Choosing quality cacao supports farmers who invest in better practices, even amidst rising costs.

• Safety (Cadmium Testing): Cadmium contamination, particularly in Latin American cacao due to volcanic soils, poses health risks, especially to kidneys. The EU’s 2023 regulation sets strict cadmium limits (0.6 mg/kg for cocoa powder), making testing essential. At Seleno Health, we rigorously test our cacao to ensure it meets safety standards, protecting your health and peace of mind. Many cacao brands are selling high cadmium cacao at reduced prices that puts your health at risk

Read more about the cadmium in cacao issue here - https://selenohealth.com/blogs/learn-about-cacao/cadmium-in-cacao 

• Ethical Sourcing: Low farmer incomes are a root cause of the cacao crisis, as they limit reinvestment in sustainable practices. By sourcing from fair trade cooperatives, we ensure farmers receive a living wage, supporting their livelihoods and communities. Our cacao is sourced from farm to table cutting out the middlemen and ensuring our farmers are benefitting from the profits not the corporate middle men.

• Sustainability: With deforestation linked to 94% and 80% forest loss in Côte d’Ivoire and Ghana, respectively, sustainable practices are critical. Our cacao is grown in rich agroforestry’s that support the flora and fauna of the Amazon rainforest. Our commitment to sustainability ensures your cacao supports the planet, not harm it.

A Call to Conscious Consumption

The cacao crisis is a wake-up call for all of us. As prices rise, choosing quality, safe, and ethically sourced cacao isn’t just about enjoying a better product—it’s about supporting a sustainable future for cacao farmers and the environment. At Seleno Health, we’re committed to transparency, from our cadmium-tested, ceremonial-grade cacao to our partnerships with farmers who share our values. Together, we can make a difference, one mindful purchase at a time.

Explore our range of ceremonial cacao and join us in celebrating cacao that’s good for you, the farmers, and the planet.

Our cacao research

Seleno Health was co-founded by Dr Corin Storkey (PhD) and Sally Huapaya. We travel to Peru to work directly with our cacao farmers, and we fund cacao research at the University of Otago, co-supervised by Professor Lyn Wise, to understand how cacao works from bean to brain. Read about our Bean to Brain cacao research.