As 2024’s top-performing commodity, cocoa is taking center stage, surpassing even Bitcoin. Prices have surged by an incredible 180%, outpacing Bitcoin’s remarkable 140% increase. With cocoa prices reaching an all-time high of over $12,900 per tonne, the most popular chocolate ingredient in the world has become a valuable commodity.
Production issues in major cocoa-producing nations like Ghana and Ivory Coast are mostly to blame for the spike in cocoa prices. Due to unfavorable weather and cultivation challenges, these countries—which provide over 60% of the world’s cocoa—saw a deficit in supplies. The outcome? By the end of the year, prices had risen to a record $12,931 a tonne, up from about $4,200 at the beginning of the year.
Although the commodity market was dominated by cocoa, Bitcoin also garnered interest due to its recent surge to over $100,000. Nevertheless, cocoa’s results shown that the confection is a global behemoth and not merely a luxury good.
Since the market is still being impacted by the supply shortage, experts forecast that cocoa prices will stay high until the first half of 2025. However, later in the year, prices are anticipated to level out as production levels stabilize.
For chocolate lovers, what does this mean? Well, the price of your favorite chocolate bar might go up a bit. However, 2024 turned out to be a delectably prosperous year for those who had the wisdom to invest in cocoa.
From farm to market, cocoa has demonstrated that it is more than simply the food of the gods; it is also an attractive investment opportunity. Who would have expected a simple bean to trump the world’s most recognized cryptocurrency?
