Daily Management Review

Global chocolate sellers are facing severe crisis


Chocolate retailers around the world are facing a severe crisis due to falling demand for sweets in 2020, according to Bloomberg, citing the International Cocoa Organization (ICCO).

Stagnation in demand for cocoa is fixed in the countries of North America and Europe. Experts believe that changes in consumer habits and a tendency for people in developed countries to switch to a healthier diet are the reasons for this stagnation. However, industry experts believe that new markets, of which India is expected to become the main market, can help solve the problem.

ICCO estimates that per capita cocoa consumption in that country was at 10 per cent of the global average in 2018. "India is the only country where I see potential for growth in sales volumes. This country already has a culture of sweet consumption unlike China, which makes it a potential number one market [for cocoa producers] in the future," said ICCO Head. He predicts that by 2023, India's average per capita consumption of the product will increase by 36 per cent from 2018 levels.

The coronavirus crisis didn't just hit the cocoa industry - the year was also tough for sellers of beer, for example, which is a perishable commodity. In the UK, local pubs had to pour out 87 million pints of beer during the pandemic, corresponding to $453 million in lost profits. In Germany, brewers are also complaining about having to pour the drink and the damage running into millions of euros.

source: bloomberg.com