Chocolate has had a big place in English society since it was first sold in The capital in 1657. It has become an integral part in the celebrations, traditions and routines of millions of people across the UK and as such an important part in our lives. Despite being household brands, respected products and flavours that unite generations many chocolate companies and the confectionary they sell face uncertain times and though they have weathered the economic recession so far as an affordable luxury that nearly all of us eat on a regular basis the next year can bring many potential challenges.
The chocolate industry continues to be impacted by relative instability in cocoa prices, due to primarily being grown in developing nations which are more likely to suffer from fluctuating supply as a result of political instability, less ability to deal with problems, less use of fertilisers and pesticides and reduced size and quality of infrastructure than the countries they supply. The Ivory Coast has been a case in point recently and while major chocolate manufacturers can absorb most price fluctuations, pressure on other areas of the supply chain as recession strikes can result in higher prices being passed onto the customer. As an, rising food prices in general, specifically in this case milk products after weak harvests in the UK and America have resulted in increased costs of production that have been hard to keep from the customer. An alternative measure adopted by many brands is to reduce the size of products rather than increase the price, with the Office of National Statistics revealing the size of some chocolate bars has reduced by as much as 10% in the past year. One of the most iconic products, Cadbury's Dairy Milk, has reduced in size from 49g to 45g while maintaining its average 59 Pence price.
As with many food industries, chocolate is a viable area of entrepreneurialism in the UK. While the high-street and supermarket chocolate counters are dominated by the big brands, local and specialty chocolatiers have been able to grow as well. The availability of local, independent chocolatiers has provided for the growth of the artisan chocolate industry and the creation of a relatively new, boutique-style chocolate sub-industry with strong sales in the UK. With an emphasis on freshness, new tastes and experiences, and perhaps most importantly something different to highstreet brands and well known products, boutique chocolatiers are seeing a booming market for gifts and also personalised treats. The next year is likely to continue to be a growth area for entrepreneurialism and a continued focus on supporting local business may strengthen this even further.
The main purchase drivers in the chocolate industry remain the core three of impulse, convenience and sharing and all three can be influenced with another factor that could be key in the following year in the industry. Product development and innovation has seen a reinvigoration of the industry and will continue as chocolatiers large and small seek new revenue avenues. Thousands of new chocolate products are developed and launched around the world each year and while this will be key for next year, classic products will remain best sellers and the re-invigoration of retro confectionary and chocolate might also help to create new opportunities.
While all industries face challenges in the forthcoming months the chocolate industry is better placed than others to weather the storm and emerge, while maybe not unscathed, but certainly not heavily damaged. As such an important part of so much of the world's celebrations and special occasions it's a product, luxury or not, that we want and need too much to see too much damage done to it. The availability of many of our favourite chocolate goods online to be delivered will help it in the digital world as big brands as well as small producers continue to capitalise on online chocolate gift and treat sales.
0 comments:
Post a Comment