Confectionery sales in Britain have soared this festive period, spurred on by budget-constrained shoppers opting for cheaper Christmas gifts.
Quality Street maker Nestlé and Cadbury owner Mondelēz are seeing more shoppers turn towards confectionery , in an aim to generate cost-friendly festive cheer, reported Reuters.
Nestlé UK & Ireland customer category manager lead Fran McCargo said: “Boxed chocolates have had a particularly strong start, with a year-on-year increase of 8.7% in value sales.
Referring to the August to November period in comparison to last year, she added: “Twist wrap chocolates have seen [sales] growth of 2.1% too.”
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She attributed the rise in popularity of the chocolate products to their price. Boxes of Nestlé’s Quality Streets and Cadbury Selection boxes start at £5 and £1.50 respectively.
In addition, supermarket giants such as Sainsbury’s and Tesco offer discounts and promotions of the products, for shoppers with a loyalty card.
The move has opened up a market of high-end chocolates, seen as a premium gift despite more affordable prices.
The market for chocolate gifts has risen by 7% in the past year, driven by higher prices, resulting in chocolate gifts worth about £1.8bn.
Yet, analysts warn that the tide may turn for chocolate brands in the near year, with manufacturers predicted to face tougher trading conditions as the cost of cocoa soars.
Despite this, experts maintain that chocolate remains a more durable purchase than other products.
Mondelēz trade communication manager Susan Nash said: “Through challenging times, consumers often review their discretionary spending. However, they are less likely to reduce their spending on confectionery gifting.”
