RE-AD THE ARTCLE BELOW AND ANSWER THIS QUES TION: Are people buying more or less chocolate this year? Exp-lain the reason for this.

How sweet it isn't: Cocoa prices hit record highs ahead of Easter holiday

Chocolate Easter bunnies and eggs will likely come at a higher cost for consumers this year as the price of cocoa climbs to record highs.

Cocoa futures have surged this year,roughly doubling since the start of 2024. Rising temperatures and weather conditions have stressed and damaged crops in West Africa, which produces more than 70% of the global cocoa supply.

Sugar prices are also rising. Futures for a pound of sugar are up about 8% in 2024, after rising 2.7% in 2023.

"The magnitude and pace of recent price increases seem to be unprecedented," wrote Citi analyst Thomas Palmer back in February when cocoa futures hit an all-time high of $5,874 per metric ton.

Big chocolate companies like Hershey's and Cadbury maker Mondelez have been passing those costs on to consumers and then some: Hershey's net profit margins ticked higher to 16.7% in 2023 from 15.8% in 2022. Mondelez reported a jump to 13.8% in 2023 from 8.6% in 2022.

Both companies reported shrinking sales volumes for their most recent quarters asconsumers grow tired of paying higher food prices.

Spending on chocolates is expected to drop this Easter, though the total figure so far remains high by historical standards, according to the National Retail Federation. Its latest survey shows that consumers are expected to spend $3.1 billion on candy for Easter this year, or $24.78 per person. That's down from $3.3 billion, or $26.31 per person a year ago.

Mondelez, which owns Easter basket staple Cadbury, has been relying on price increases to counter the surge in cocoa prices. The company has said it commands a 13% share in the global chocolate market. It acknowledged price increases of up to 15% within its chocolate category in 2023 and higher prices will likely be a key factor in meeting revenue growth forecasts for up to 5% in 2024.