Cocoa processing in Europe is falling

By: Trademagazin Date: 2025. 07. 24. 11:17

The volume of cocoa processing in Germany fell significantly in the second quarter of 2025, according to new data from the German Confectionery Industry Association (BDSI). German processing companies ground only 84,280 tons of cocoa, which is a 17% decrease compared to the same period last year. However, the trend does not only affect Germany: cocoa grinding is decreasing throughout Europe, and according to statistics from the European Cocoa Organization (ECA), the amount processed decreased by 7.2% to 331,762 tons.

Raw materials are expensive, consumers are restrained

The volume of cocoa grinding is one of the most important indicators of demand for chocolate and cocoa products. The current decline is due to several mutually reinforcing factors: the drastic increase in the world price of cocoa, weak crop yields and declining consumer demand. In the German market, for example, annual cocoa consumption per capita in 2023/24 was 3.1 kilograms – a decrease compared to previous years.

The rise in cocoa prices is having an impact on the world. The cocoa shortage and the restrained purchases of exporters were already being reported in the trade press at the beginning of 2025: for example, the summary entitled Cocoa Crisis reported that the largest producers – including Barry Callebaut and Olam – had reduced their orders from Ivory Coast because prices had fallen to an extreme level, while production had not kept pace with demand. The practice of exporters overpaying suppliers in an attempt to secure supplies has also intensified in the market – but this only increases supply instability.

Nearly 20% price increase in stores in Hungary

While processing and demand are declining in Western Europe, Hungarian consumers are facing increasingly high prices. According to July data from the Central Statistical Office (KSH), the price of chocolate and cocoa increased by 19.6% in one year, well above the 6.2% inflation average for food (4.9% excluding catering).

The domestic market is therefore still feeling the effects of the global cocoa crisis, even if consumption has fallen less so far. However, trends show that the price of cocoa-based products may continue to rise if global supply is not stabilized and procurement costs are not reduced.

Processors, manufacturers and traders are now mostly waiting for the 2025/26 harvest to bring about a turnaround – but for now, neither the weather nor market conditions give reason for excessive optimism.