UK: Is high inflation squeezing new ingredient opportunities into sugar and confectionery?

Published May 30, 2024

Tridge summary

Inflation rates in the UK's sugar and chocolate confectionery industry remain high, despite a decrease in food and beverage inflation rates to their lowest since October 2021. The overall food and beverage inflation rate fell by 0.8% in May 2024, but sugar and chocolate confectionery prices continue to rise due to poor harvest seasons and the cost-of-living crisis. The high prices are stretching shoppers' budgets and could lead to disruptions in consumer buying habits and retail sales. Factors contributing to the rise in confectionery prices include high cocoa prices due to crop shortages in West Africa and the need for alternative ingredients to reduce costs. Emulsifiers can help maintain chocolate's properties while reducing cocoa butter costs. However, it is expected that these high inflation rates will continue to pose a challenge for chocolate manufacturers in the long term.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The UK's sugar and chocolate confectionery inflation levels remain high despite the lowest food and beverage rates since October 2021. Grocery inflation levels decreased to 2.4% in May 2024, Kantar Worldpanel reported, continuing a downward trend that has seen figures decrease 15 months in a row. In the four weeks to 12th May 2024, the UK’s F&B inflation rate reduced by 0.8%, from 3.2% in April to 2.4% in mid-May. While the price of milk and butter—ironically hallmark ingredients in the bakery and sweet snack sectors—fall the fastest, the data and insights consultancy reports that sugar and chocolate confectionery tell a different story. It’s a reality all too familiar in Europe, too, with the European Union (EU) reporting a 61% year-on-year increase in sugar prices in 2023. Confectionery trade association CAOBISCO painted a bleaker picture, stating that white sugar prices had spiked more than 80% in 2022-2023, according to EU Commission published data. Detailing the ongoing ...

Source: Foodnavigator