BDSI reports German cocoa grindings suffer downturn, reflecting wider negative European results

Germany’s BDSI confectionery trade association has confirmed its ten bean-based companies operating in the country have ground  94,302.7 tonnes of cocoa for the second quarter, showing a year-on-year decline of 2.3% amid notable sector tests, writes Neill Barston.

Furthermore, the European Cocoa Organisation (ECA) reports that in the past four months, 343,283 tonnes of raw cocoa were ground, corresponding to a decline of 5.7% compared to the same quarter of the previous year.

Notably, the latest figures come amid a reported decline in demand for premium chocolate, as shoppers across Europe, and wider global markets, face up to a cost of living crisis that has placed pressure on sales of both staple products and luxury items.

According to Barry Callebaut’s latest posted results, the chocolate market was down 1.5% for the first nine-months of this year, as well as additional supply chain challenges with the cocoa sector, as farmers faced challenging conditions in Ivory Coast and Ghana with inflation hitting fertiliser costs significantly, impacting on available supplies.

The BDSI represents the economic interests of more than 200 mostly medium-sized German confectionery companies. It is both a business and employers’ association. With a share of around 10% in sales, the German confectionery industry is the fourth-largest branch of the German food industry.

Its special feature is its strong export orientation. German confectionery manufacturers employ around 60,000 people. Both the large, internationally active companies in the confectionery industry are organised in the BDSI, but at the same time there are also many small and medium-sized companies. The company size structure of the industry is made up as follows: 51% small companies (up to 100 employees), 42% medium-sized companies (up to 500 employees) and 7% large companies (over 500 employees)