Ice cream costs are rising. Credit: Lukas, Pexels
Ice cream fans across the world are in for a shock this summer, as prices surge due to record-high coconut oil costs, driven by climate issues and rising demand for fuel.
Coconut oil, a crucial ingredient in many ice creams, has reached all-time monthly price records throughout 2025, according to Bloomberg columnist Javier Blas. Blas blamed the surge on “a combination of supply and demand issues, poor weather affecting coconut crops, and a rising demand for coconut oil as a source of fuel.”
Coconuts for diesel
Blas said that countries like the Philippines, the world’s top coconut oil producer, are now redirecting large volumes of coconuts into biofuel production.
“The need for cheap fuel in Asia means more expensive ice cream in the United States and Europe,” he said.
He estimated that 4.5 million coconuts – nearly a third of the Philippines’ annual harvest – could be used for diesel production next year.
In May, coconut oil hit $2,700 per tonne (around €2,500) – double its price this time last year, in the US.
Spanish ice cream prices also rising
The price hike is being felt across Spain, too. Ice cream producers are struggling to keep prices stable due to not only the rising prices of raw ingredients like sugar and coconut oil, but also increased energy bills and higher costs for cones and tubs.
In Greece, one scoop of ice cream is nearing €3
According to To Vima, a scoop of ice cream in Greece now costs nearly €3, and a couple’s treat of two scoops each could easily set you back €12.
One confectioner said he’s still holding scoop prices at €2, but added, “I don’t know how long I can keep absorbing these increases.”
The worst-hit ingredient is chocolate – up 80 per cent – but other staples are rising fast. Pre-packaged products have gone up by 30 to 50 cents, and some producers are shrinking product sizes to offset costs.
Cocoa prices up 32% in 3 years due to drought
Cocoa prices have also climbed due to severe drought conditions in major suppliers Ghana and Ivory Coast. In Spain, cocoa has increased by more than 32 per cent over the past three years, according to the country’s Consumer Price Index.
Is an ice cream on a hot day now considered a luxury?
Global forces are driving up the cost of your ice cream cone. Should we expect higher dessert prices to become the new normal, or is this just a seasonal spike?
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