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Biodiversity | ~ 3 min read

How to make chocolate sweeter

Mélissa Bourassi

In recent weeks, global cocoa prices have reached unprecedented levels, reflecting the serious challenges faced by the cocoa industry. Is there a way to enjoy chocolate more sustainably this Easter?

Most of the world’s chocolate is consumed in Europe and North America, and Easter is responsible for a spike in consumption. In the UK alone, estimates suggest that 80-90 million chocolate Easter eggs are consumed each year.

But most of the cocoa used to make chocolate is cultivated in West Africa and this is where the world’s consumption has its highest impact.

Since the start of 2023, global cocoa prices have risen by over 150%, reaching a record high of around USD 6,500 a ton.1 The sustained price volatility reflects a structurally flawed industry model, and it has never been more urgent to address its challenges and rethink the sustainability of the cocoa value chain.

What challenges does the cocoa industry face?

The global cocoa value chain is severely disrupted by climate change. The world’s top two producers, Ivory Coast and Ghana, are home to two-thirds of the world’s cocoa production but output is falling due to drier conditions caused by El Niño. Furthermore, cocoa crop yields are severely hit by black pod, an important fungal disease, responsible for the loss of up to 40% of global production.

Rising cocoa demand is driving deforestation and excessive pesticide use – an estimated 70% of illegal deforestation is linked to cocoa farming in the Ivory Coast.2

Furthermore, cocoa production working conditions are difficult and child labour is a widespread issue linked to farmers not receiving a fair share of revenues. Gender inequality is another challenge, with the critical role of women in cocoa production being undervalued. Six million people work in global cocoa production but, on average, they earn just 6% of the final value of a chocolate bar.3

Path to sustainable cocoa

Lowering the ecological footprint of the sector will be critical in meeting rising demand for chocolate. This involves efforts to reverse deforestation and improve agricultural practices including through agroforestry, which supports multifunctional land use.

However, this will be possible only through transformative measures targeting the improvement of farmer incomes and facilitating their access to resources and financing.

Investors can play a crucial role by accelerating investments that can drive radical change in the sector. These include initiatives such as improved traceability of products, certification schemes, and supporting equitable pricing. Additionally, investee companies’ actions can be monitored through active investor engagement.

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