The festive season may be less merry for those with a sweet tooth this year, as the price of chocolate has risen by nearly a fifth, according to research.
Chocolate prices in Great Britain rose 18.4% on a year earlier in November, analysts at the market research firm Worldpanel found.
However, the study showed the average cost of a Christmas dinner for four people has fallen by a penny to £32.46.
Fraser McKevitt, the head of retail and consumer insight at Worldpanel, said supermarkets were investing heavily in promotional deals to win shoppers over.
“With the cost of living still biting for many this Christmas, just under one-third of all spending is on promotion as supermarkets find ways to shield shoppers from the impact of price rises,” he said.
The cost of a frozen turkey, the most expensive component of an average Christmas dinner, has fallen by 3.6% to £13.52, Worldpanel found. However, the cost of all the trimmings has risen: the price of four portions of potatoes has risen 1.1% to £1.67, cranberry sauce has increased 10% to 86p, and stuffing mix is up by 6.9% to 96p.
The cost of chocolate has increased sharply as cocoa prices have soared after poor harvests in the key growing regions of Ghana and Ivory Coast over the past three years, amid extreme temperatures and unusual rainfall patterns driven by the climate crisis.
The added cost has prompted manufacturers to use a number of tactics, from making bars and biscuits smaller to reducing cocoa content in an effort to keep the prices paid by shoppers down. In October, McVitie’s reduced the amount of cocoa in the recipes of Club and Penguin bars so much they are now only “chocolate flavour”.
While chocolate prices are much higher than last year, 5 million households still bought a confectionery Advent calendar in November, as shoppers continued to indulge in “small treats”, McKevitt said.
“We’ve seen that right through the cost of living crisis as people have found new, more affordable ways to indulge in what we call the ‘pick-me-up pound’,” he said.
“The rise and rise of premium own-label lines bears this out with £1 in every £20 now spent on these treat-type products.”
Grocery prices rose by 4.7% in November, Worldpanel found. Chocolate was among one of the biggest risers, as well as unprocessed fresh meat.
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The average price for a kilogram of beef mince rose by 37.1% year on year in the 12 weeks to 2 November, according to separate figures by the Agriculture and Horticulture Development Board. As such, more people have been seeking out relatively cheaper proteins such as chicken, pork sausages and fish.
Tesco retained its status as the UK’s biggest supermarket, with a market share of 28.3%. Its sales rose 4.7% in the 12 weeks to 30 November, Worldpanel found. Ocado, Lidl and Sainsbury’s recorded strong sales growth.
By contrast, troubled Asda’s market share fell from 12.4% last year to 11.5%, while sales slumped 4.3%. The heavily indebted retailer has been struggling with weak sales, despite an effort to win over shoppers with price cuts and improved stores.
While more people are doing their grocery shopping online – with sales up 8% – bricks and mortar shops remain the most popular place to buy household supplies.
Monday 22 December and Tuesday 23 December are expected to be the busiest shopping days of the year, Worldpanel said, as Christmas Day falls on a Thursday this year.
