Can Ozempic Bring Down Soaring Chocolate Prices?

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The chocolate industry is in trouble. Cocoa prices have soared because of climate problems in West Africa, the largest regional supplier of the commodity. Ozempic and other weight loss drugs may cause a drop in chocolate consumption and, therefore, cocoa demand, which could help offset the drop in cacao supply.

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About three-quarters of the world’s cocoa supply comes from West Africa. The region has been hit by massive rain storms, cutting production in half, if not more. Cocoa prices have jumped 50% to about $7,000 per metric ton in the last two months.

Many chocolate producers have been unable to buy cocoa because they are unable to do so economically, cutting the supply of chocolate. Other producers have had to increase chocolate prices sharply, and many consumers have decided prices are too high.

Opempic and other weight loss drugs may solve part of the problem. People on these drugs cut food consumption, and much of that is sugar-based. Almost all chocolate has some level of sugar. A considerable number of people could stop eating chocolate, increasing the supply for other consumers.

Ironically, some Wall St. analyses believe weight loss drugs could hit chocolate makers hard financially by lowering demand. On the other hand, if prices drop, consumers may be more likely to return to their chocolate consumption habits.