CACAO PREMIUM

The global chocolate market is in a period of significant fluctuations: in addition to suddenly rising cocoa prices, consumer behavior is also changing, with a preference for smaller portions  https://student.yayasanbankrakyat.com.my/

Cocoa prices and their impact

The main cocoa supply comes from West Africa – a region facing serious problems due to extreme weather – causing cocoa prices in 2024 to exceed $12,000 per ton , approximately four times higher than in 2023, before cooling down to around $7,000 per ton at present.
As a result, the chocolate industry has been affected: According to the National Confectioners Association’s “State of Treating 2025” report, chocolate sales in 2024 are projected to increase by only 0.4% in value, while sales volume is expected to decrease by 3.3% .
With such pressure from rising raw material costs, many brands have been forced to adjust prices. For example, Hershey’s announced it would pass on some of the increased costs to consumers, but still maintain approximately 75% of its product range below $4 per bar. On Walmart.com, a Hershey’s chocolate bar is selling for $1.32 . 
A survey from Numerator (February 2025) shows that 63% of shoppers believe chocolate is currently “somewhat expensive” or “very expensive,” and 33% admitted to reducing their purchases due to price.

Consumer behavior & growth areas

Besides price pressures, consumers are shifting toward smaller portion sizes. According to data from GWI, Gen Z has increased its consumption of mini-sized products such as Hershey’s mini-bar pouches by +15% since 2020. 
However, older generations still account for the majority of purchasing power: in Q1 2025, 37% of Gen X and 40% of Baby Boomers purchased mini-pouch products, while only 27% of Gen Z did the same. 
According to Circana data, in the 12 months to July 13th (year not specified in the article), chocolate candy sales increased 3.1% in value but decreased 1.7% in units; while non-chocolate candy sales increased 3.6% in value and only slightly decreased 1% in units.

Adaptive branding strategies

Faced with these challenges, chocolate brands are stepping up innovation, optimizing serving sizes, and expanding the consumer experience:

• Collaborations and special product launches: For example, Hershey’s collaboration with Oreo results in a peanut butter-filled product, and Reese’s Oreo-infused cup — this line is expected to receive investment until 2026.

• Leveraging popular culture to increase brand recognition: Hershey’s collaboration with Pokémon (151 Pokémon images printed on packaging), or M&M’s sponsoring the Au Co “Australian Open” and setting up a pop-up store at the tournament.

• Focus on mini-sized products and smaller portions: Brands are reducing product sizes or using premium ingredients to enhance the experience—the goal being to save costs while remaining appealing to consumers who control their portion sizes.

• Catching the “Chocolate Dubai” trend: This product line, consisting of a chocolate bar filled with kataifi and Dubai-style pistachio-tahini cream, is creating a strong buzz on social media and is being incorporated into the main retail channels of major brands like Lindt. For example, the 150g version sells for around $15.