Chocolate prices expected to increase in South Africa
Chocolate prices in South Africa are climbing rapidly as cocoa costs nearly tripled in 2024, driven by supply problems in West Africa.
Global cocoa prices remain near record highs and may still climb, making it unlikely that South African consumers will see cheaper chocolates this year.
BusinessTech reports that although South Africa’s overall inflation stays within the Reserve Bank’s 3% to 6% target range, food and non-alcoholic beverage inflation rose to 4.0% in April 2025.
Prices within this category climbed more steeply, with sugar, confectionery, and desserts increasing by 5.6% year-on-year. Chocolate prices alone surged by 6%.
Over a longer period, the rise is even more pronounced; a standard chocolate slab now costs nearly 27% more than in 2023, while chocolate bar prices have increased by 18.6%.
Global cocoa prices reach historic highs
Global cocoa prices remain near record highs and may still climb, making it unlikely that South African consumers will see cheaper chocolates this year.
BusinessTech reports that although South Africa’s overall inflation stays within the Reserve Bank’s 3% to 6% target range, food and non-alcoholic beverage inflation rose to 4.0% in April 2025.
Prices within this category climbed more steeply, with sugar, confectionery, and desserts increasing by 5.6% year-on-year. Chocolate prices alone surged by 6%.
Over a longer period, the rise is even more pronounced; a standard chocolate slab now costs nearly 27% more than in 2023, while chocolate bar prices have increased by 18.6%.
Reuters analysts report that cocoa processors are rejecting truckloads of beans due to poor quality.
Cocoa processors reject about 5% to 6% of mid-crop deliveries, compared to just 1% during the main crop.
Erratic rainfall has caused a drop in quality and could cause yields to fall 9% from 2024 levels.
Producers brace for more price hikes
Major chocolate manufacturers, including Mondelez International, which owns Cadbury and Oreo, have acknowledged the price strain.
The company flagged “unprecedented cocoa cost inflation” in recent forecasts and warned that more price increases may be necessary if prices remain high.
Nestlé and other global producers have also hinted at future price increases due to cocoa shortages and rising input costs.
Tiger Brands looks to exit the chocolate business
Tiger Brands, owner of Beacon and South Africa’s popular marshmallow Easter eggs is looking to sell its chocolate division, citing decades of underinvestment and limited strategic focus.
The group admitted it had failed to keep pace with competitors like Cadbury and acknowledged it had not actively engaged with the brand or updated its technology in over 30 years.
Tiger Brands will support Beacon until it finds a suitable buyer, but believes new ownership could improve the brand’s performance.