Haribo Emerges as a Chocolate Alternative
Sales Increase by 14% in One Year
As cocoa, the main ingredient in chocolate, has seen a sharp decline in harvests and a surge in prices due to factors such as climate change, sales of Haribo, the jelly company famous for its bear-shaped gummies, have soared. Consumers, feeling the burden of rising chocolate prices, are turning to Haribo as an alternative.
On June 16 (local time), the German daily S?ddeutsche Zeitung (SZ), citing market research firm Circana, reported that Haribo sold 26 million more bags in Germany from January to April this year compared to the same period last year. This represents a 14% increase year-on-year.
According to the report, Haribo, a jelly company founded in Bonn, Germany in 1920, holds more than 50% of the German market share in segments such as fruit and foam gummies and licorice candies. Haribo's annual sales are estimated at 3 billion euros (4.7405 trillion won). In particular, Haribo is showing growth rates in both sales volume and revenue that are twice as high as the industry average.
In contrast, chocolate companies saw their first-quarter sales drop by 12%, even as they raised prices one after another in recent months. The increase in chocolate prices is due to the price of cocoa, its main ingredient, having quadrupled over the past two years. Cacao pods, which are needed to grind cocoa powder, can only be grown near the equator. In recent years, the so-called "cocoa belt" region of West Africa has experienced heavy rainfall and widespread crop diseases and pests, leading to a significant decline in cocoa production.
Haribo has also raised its prices and reduced the package size in recent years due to rising energy costs and wages. However, the extent of Haribo's price increases has been less than that of chocolate, which is believed to be driving more consumers to choose gummies over chocolate.
SZ reported, "Consumers are now shying away from chocolate because of its high price. They are satisfying their cravings for sweets with fruit gummies instead," adding that Haribo has benefited from the rise in cocoa prices caused by the climate crisis.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
