South Africans turn to chocolate when the going gets tough
The saying ‘chocolate is good for the soul’ is even more prevalent when the going gets tough and South Africans are no different.
The cost of cocoa and sugar has seen double-digit increases in the past year while the cost of cocoa – a vital chocolate ingredient – has surged globally.
The American CoBank reports that the international cocoa price is presently 65% higher than a year ago.
Production issues in West Africa, responsible for nearly 70% of the world’s cocoa supply, are contributing to the situation.
Adverse weather conditions have resulted in lower-than-expected production, and prices are anticipated to remain elevated for much of 2024.
DOUBLE WHAMMY FOR CHOCOLATE PRICES
In addition, international sugar prices have risen sharply over the past three years, impacting chocolate production costs.
South African sugar prices have also seen a substantial increase, with a 34% rise in the retail price over the past year, says Moneyweb.
Chocolate brands have been left with little choice but to increase prices.
Despite these escalating costs and other financial challenges, global research indicates that consumers aren’t quite ready yet to forsake their beloved chocolate treats.
SOUTH AFRICANS MORE INCLINED TO INDULGE IN TOUGH TIMES
While some people may opt for alternative brands or smaller portions, the prevailing sentiment is that chocolate remains within an affordable range.
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Mondelēz International, owner of the Cadbury brand, released its inaugural State of Snacking report for South Africa last year.
This annual study is conducted in 13 countries and revealed that during challenging times, South Africans are even more likely to treat themselves to chocolate.
“In fact, it seems the difficult times may be compelling them to seek out these moments of sweet reprieve more often,” notes the group.
Despite 94% of South Africans expressing concerns about inflation, 78% admit that they always allocate space in their budgets for snacks.
Arpan Sur, Mondelēz International’s senior director of marketing for sub-Saharan Africa adds: “Interestingly, 75% of South Africans believe it is more important than ever to enjoy moments of indulgence, and 80% say ‘chocolate is good for the soul,’ with 50% reporting that they eat it weekly or more.