Chocolate industry faces cocoa price pressure and shrinkflation concerns

The chocolate industry is facing significant pressure due to rising raw material costs, particularly cocoa. Lindt & Sprüngli reported that its recent 4.3 percent organic revenue growth was driven almost entirely by price increases of 11.8 percent, which resulted in a 7.5 percent decline in sales volume. Consequently, the company's stock reached a 52-week low.

In Germany, consumer advocates have flagged deceptive packaging practices. The Verbraucherzentrale Hamburg named Romy milk chocolate the “Mogelpackung des Monats” (deceptive package of the month). While the retail price of the product decreased from 2.99 Euro to 2.49 Euro, the quantity was reduced from 200 grams to 150 grams. This 25 percent reduction in volume represents an effective price increase of approximately 11 percent per unit, despite the packaging size remaining largely unchanged.