Chocolate: Domestic consumption only slightly exceeds previous year's level

Despite the upturn in the economy during the course of the year, chocolate consumption in 2007 did not really pick up according to the Association of the German Confectionery Industry (BDSI) in the run-up to the International Sweets and Biscuits Fair (ISM) in Cologne. The BDSI estimates that domestic sales and turnover of chocolate have only increased slightly in comparison to the previous year. In 2006, each German citizen consumed a statistical average of 9.2 kg of chocolate.

The approx. 90 industrial manufacturers of chocolate and chocolate products received impetus from the export trade. The export of chocolate and chocolate products increased by approx. 15 % - around 55,000 tonnes - to 420,000 tonnes. The value of products exported increased by over 18 %, reaching €1.72 billion. Exports to countries outside the European Union achieved particularly high growth rates. Of the these countries, the USA, Russia and Switzerland are amongst the biggest importers.

A major concern for manufacturers is the development of raw ingredient prices and other production costs. In addition to strongly fluctuating prices for cocoa products, it is primarily dramatic price increases for powdered milk, vegetable fats and almonds which are crippling companies. High energy and logistics costs are also factors, as well as price increases for packaging materials and higher personnel costs.

The production of semi-finished cocoa and chocolate products has slightly increased by two to three percent. Exports in the segment have also increased significantly. In total, the German industry exported 250,000 tonnes of semi-finished cocoa and chocolate products worth €470 million. This corresponds to an export share of over 50% in the product segment. The German cocoa and chocolate industry processed a total of over 378,000 tonnes of raw cocoa in 2007; 17.4 % more than in the previous year.

In light of the worsening economic situation and the high value of the euro compared to the dollar, chocolate manufacturers are taking a very conservative view of the development in the year which has just begun.

The International Sweets and Biscuits Fair (ISM) is taking place in Cologne for the 38th time. With 1,675 suppliers from 70 countries, the most important fair for the confectionery sector has set a new record regarding its number of exhibitors. ISM is open from Sunday, 27th until Wednesday, 30th January for trade visitors only.

The organisers of ISM are Koelnmesse and the International Sweets and Biscuits Fair Working Group (AISM), which is the conceptual sponsor.

Source: Association of the German Confectionery Industry (BDSI), Bonn; Specialist Division for Chocolate, Chocolate Products and Cocoa
22nd January 2008

Information on ISM:
www.ism-cologne.de (www.ism-cologne.com)

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