The economic slump has caused a “significant” fall in demand for cocoa in Europe, where declining chocolate sales have hit confectioners, the German Cocoa Trade Association has claimed.
Go deeper with GlobalData
A spokesperson for the association told just-food: “We have seen declining consumer demand feed through to falling cocoa demand as chocolate producers require less cocoa. This has led to a mounting cocoa surplus.”
London cocoa futures have risen sharply in recent months, with concerns over insufficient supply driving up the price. However, the German Cocoa Trade Association indicated that falling demand is, in fact, creating stockpiles.
This, the spokesperson said, has caused the price of cocoa being physically delivered to fall, despite its continued high cost on the futures market.
“Consumers are trading down to cheaper chocolate – which has a lower cocoa content. There has also been a drop off in export demand, particularly to CEE,” the spokesperson said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“It is impossible to say how long this will continue, how low demand will fall and how low prices will go. I do expect a stabilisation, but with the economy so poor this is hard to predict.”
