For the love of Chocolate
May 31st, 2011 by H&R | Categories: Press Office
BMI Research, SA’s leading independent research organisation specialising in consumer and industrial research in various sectors including the retail market, recently completed their annual confectionery quantification report which revealed some very interesting chocolate facts.
Chocolate slabs are by far the most popular chocolate confectionery type in South Africa and hold an over 50% share of the market.Chocolate slabs lost some share to specialty chocolates in the base year to contribute 52.4% to total volumes, reflecting a 3.7% share decline from 2009 levels. The chocolate slabs category returned to near pre-recession levels in 2010, with 8.6% growth recorded.
In 2010 growth in the specialty chocolate market was experienced across all three categories, with boxes, packets and novelty chocolates experiencing 38.5%, 16.2% and 36.3% growth respectively. The category is expected to remain stable in the medium term. Several factors contributed to the good performance of the specialty segment. Increased manufacturer focus on boxes and novelty chocolate, notable growth was seen in the import market and new product launches in the boxes and packets.
With Cocoa beans being the main ingredient used in chocolate, the commodity price of cocoa beans has a major bearing on the performance of the category.The price of chocolate slabs remained fairly constant in 2010 but was expected to rise in 2011 due to political unrest in Ivory Coast; the world’s largest cocoa producer. The price of cocoa hit a new high in February 2011 driven by a ban imposed on cocoa exports.
The rise in ingredient costs has already seen chocolate giants reducing slab sizes, both internationally and locally, in a bid to remain profitable. In the British market, 2011 will see further reductions of popular favorites with Toblerone expected to shed off one triangle and Dairy Milk bars expected to lose a few chunks. The reduction in size is not only price driven but health driven with smaller portion sizes expected to help tackle the obesity epidemic.
