The confectionery industry experienced sharply divergent trends in 2024, with chocolate-based and sugar-based manufacturers facing markedly different cost pressures. Our chocolate bar cost model illustrates this divide, showing a 23.93% year-over-year increase in compound costs, driven primarily by cocoa components.

Chocolate-based confectionery manufacturers confronted unprecedented challenges as cocoa prices reached historic highs, forcing many to reassess their product strategies and pricing. This pressure was particularly acute for products with high chocolate content, while those with lower cocoa percentages or chocolate coatings experienced somewhat less severe impacts. Supporting ingredients like palm oil and dairy added to the cost burden.

In contrast, sugar-based confectionery producers benefited from significantly improved market conditions. Sugar prices declined markedly from 2023’s record levels, dropping 17% globally and 34% in Europe, supported by strong beet sugar production. This created opportunities for sugar-based product innovation and helped maintain margins in this segment.

Glucose and sweetener markets provided additional stability, with prices declining 7% year-over-year, benefiting producers of chewy candies and other glucose-based products. The oversupply situation in these markets, driven by significant production growth in China and India, helped maintain favorable pricing for manufacturers.

In 2025 the industry faces continued segmentation in its challenges and opportunities. Chocolate-based manufacturers will need to navigate persistent high cocoa costs and upcoming EUDR compliance requirements, while sugar-based producers may face a rebalancing sugar market as current low prices could lead to reduced European beet planting. Consumer demand and price sensitivity will affect overall demand and might lead to a changing appetite for sweet treats.

What’s inside this report

For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:

  • Sugar and Sweeteners
  • Cocoa
  • Nuts
    • Almonds
    • Walnut
  • Vegetable Oils
    • Palm Oil
    • Coconut Oil
    • Soybean Oil
    • Rapeseed Oil
    • Sunflower Oil
  • Dairy
    • Butter and Cream
    • Milk Powders
    • Whey

Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.

Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-confectionary-2024/