The price difference between cacao powder and cacao nibs can be attributed to a variety of factors:

1. Processing Costs: The process of converting cacao nibs into cacao powder involves additional steps, including grinding and pressing, to separate cacao solids from cacao butter (the fat content). These extra processing stages contribute to increased production costs, which are reflected in the higher price of cacao powder.
2. Labour and Equipment: The equipment and labour required to transform cacao nibs into cacao powder are more intensive and expensive than the simpler packaging process. Grinding and pressing cacao solids demand more sophisticated machinery and additional human involvement, contributing to the overall cost.
3. Versatility: Cacao powder offers greater versatility in culinary applications than cacao nibs. While cacao nibs are often consumed as they are or used sparingly in specific recipes, cacao powder is found to be used in a broader range of dishes. It's commonly utilised in baking, smoothies, hot beverages, and various recipes, increasing its demand and potential market value. This versatility adds to the perceived value of cacao powder, influencing its pricing.

Moreover, cacao beans contain cacao solids (the non-fat component) and cacao butter (the fat component). The amount of cacao butter retained in the powder can vary when processing cacao beans into cacao powder. This variation in fat content directly affects the price of the cacao powder. Cacao powder with a higher fat content is often considered of higher quality due to its smoother texture and enhanced flavour profile. As a result, cacao powders with higher fat content, especially those used for gourmet or premium products, can be priced at a premium compared to cacao powders with lower fat content.