We’d like to take the opportunity to wish you all a restful and restorative holiday season.

It’s been quite the year for the confectionery sector, with two key topics dominating our newsfeed. Firstly, soaring cocoa prices significantly impacted chocolatiers, forcing many to rethink their pricing strategies and ingredient sourcing. Some smaller chocolatiers struggled to absorb the costs, leading to product reformulations, reduced product sizes, or passing costs onto consumers. Meanwhile, larger companies leveraged their scale to secure supply chains, though even they faced challenges in maintaining profit margins amid escalating production costs.

Additionally, the EU Deforestation Regulation (EUDR) deadline of December 31 2024 was pushed back. This decision was met with frustration by larger manufacturers who’d adapted their cocoa and palm oil supply chains with relative ease and were ready for implementation, and relief by smaller firms who welcomed the additional 12 more months to prepare.

In terms of trends, functionality remained a significant area of focus for formulators seeking to appeal to health-conscious consumers, while premiumisation allowed confectionery to remain an affordable treat despite cost of living pressures. Environmental concerns prompted both consumers and manufacturers to prioritise sustainable sourcing and eco-friendly packaging as well as worker rights and fair pay with Nestlé and Hershey pioneering income accelerator programs.

Finally, AI and robotics technology have been transforming every corner of this dynamic sector from marketing and e-commerce, to food safety, productivity, and sustainability.

So what does 2025 have in store? We’ll keep you updated with the latest developments and trends. Make sure you subscribe to our newsletter. In the meantime, happy holidays!