Skyrocketing demand and supply challenges are pushing up chocolate prices ahead of Easter.
Demand for chocolate is rising at its fastest in three years, but farmers in West Africa can't keep up, meaning higher prices for chocolate bunnies and other cocoa based treats around the Easter holidays, Bloomberg reports.
The cost of cocoa beans reached a 30-month high in March, and prices could continue to rise to $3,210 per metric ton by December—the highest they have been since July 2011.
Cocoa butter is a byproduct of the crushed beans that gives chocolate its texture and snap, and makes up 20 percent of a chocolate bar's weight. The price of cocoa butter in the U.S. is up 86 percent from a year ago.
That, combined with record milk prices and a 20 percent increase in sugar futures have forced confectioners to raise prices, Bloomberg reported.
Easter and Christmas chocolate sales are expected to jump five percent to $12.7 billion this year.
The increase in demand comes in part from emerging markets like Asia, Ecobank's head of soft commodities Edward George told NBC News. Consumption of chocolate in China has tripled over the last four years.
"If we do see more and more cocoa beans sucked into the Asian market, and they become scarcer, then inevitably prices will go up." George said. "It could be that cocoa becomes again a real luxury product, like champagne."
On the supply side, El Niño weather patterns could bring dry winds to growers in the Ivory Coast and Ghana. With a 65 percent chance of the weather pattern developing ahead of the October season, major growers could be facing dried out crops, Bloomberg reported.
George also said that confectioners may switch to cocoa butter substitutes like palm oil, shea butter or cotton seed oil, which could give chocolate a different taste, and even prevent it from being called "chocolate."
According to ConfectioneryNews.com, the FDA allows cocoa butter alternatives in the production of chocolate products, but the result is referred to as compound coating, not chocolate, and packaged as "chocolate flavored."
Have you noticed higher than usual chocolate prices this Easter holiday? Leave a comment below.