COVID-19 Impact on Chocolate in Food and Beverages Industry | DBMR

Posted by Rajesh on April 22nd, 2021

COVID-19 Impact on Chocolate in Food and Beverages Industry

OVERVIEW

Chocolate is a confectionery product manufactured from the processing of cocoa beans. The outbreak of the COVID-19 pandemic has forced governments across the world for lockdowns which are causing supply chain disruptions in the chocolate industry. The demand for cocoa grindings has reduced because of the reduction in global chocolate consumption. Cocoa grinding is a major ingredient used in chocolate production. 

For instance,

Association of German Confectionery Industry (BDSI) members and eleven German companies working in the cocoa grinding industry reported that cocoa grinding in the second quarter of 2020, their production facilities produced 78,825.2 tonnes of cocoa which is 16.3% less than the corresponding quarter of the previous year. Various other countries across the world the confectionery manufacturers faced a downturn owing to the disruptions in the supply chain. The sales channel such as confectionery stores and department stores have been closed from the previous few months. The European Cocoa organization (ECA) also reported the reduction in the cocoa grounding which is valued at 314, 108 tonnes in Europe, this value is 8.9% less than the previous year.

• During the initial phase of the COVID-19, the cocoa prices were decreased and the cost of transportation was increased. The biggest challenge is to collect cocoa from small farmers and supply it to the cacao exporters and cacao processors for the production of chocolate. The restrictions on the transportation and closing of borders have worsened the situation. Because of his the chocolate manufacturers or processors are facing a shortage in the supply of raw materials which is affecting their sales. 
• Owing to the reduction in the consumption of chocolate and transportation issues across the world, the manufactures, and chocolate product distributors are not able to reach their consumers, therefore manufacturers are coming up with various initiatives. For instance, to boost the sales of craft chocolate, the craft chocolate community has created a platform called Stay Home with Chocolate. This platform is led by Uncommon Cacao, FCCI, Craft Chocolate Experience, uses online tools, such as e-commerce and live tastings. This platform is supporting small chocolate companies to offer ethical and high-quality chocolate products.

• Import (2019)

Read in detail…