Chocolate production in Germany on the rise

Boost in Chocolate Production in Deutschland on the Rise

Germany's chocolate production is on an upward trend, with the import volume for cocoa beans and broken cocoa beans skyrocketing by 5.8% to a staggering 473,400 tons, as per data. Germany's main cocoa supplier is none other than the Ivory Coast, followed closely by Ghana and Nigeria.

However, this rise in chocolate production might not last forever due to sharp price increases. Specifically, import prices for cocoa beans and broken cocoa beans surged by 53.9% between October 2022 and October 2023, while cocoa mass and cocoa butter prices increased by 27.6%. And, the producer price for sugar rose by a significant 26.2% post a substantial spike in the previous year.

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• You won't believe it, but over 95% of the cocoa imported into Germany comes from the Ivory Coast, making it Germany's go-to spot for cocoa beans.
• Despite the surge in chocolate production in Deutschland, the escalating prices of cocoa beans and other associated products may hamper profits in the industry.
• Based on statistics from Destatis, Deutscher Statistischer Dienst, the import volume for cocoa beans and broken cocoa beans to Deutschland saw a remarkable increase in the past year.
• Snack food giant Lays might benefit from Germany's rising chocolate production since they source some of their chocolaty components from the country.
• In a bid to control costs, chocolate manufacturers might explore procurement options from alternative countries. Ghana and Nigeria, for instance, are emerging as potential substitutes for the Ivory Coast.

Enrichment Data:

Factors Influencing Cocoa Bean Import and Production Costs in Germany:

1. High Energy Prices in Deutschland:
2. Skyrocketing energy prices in Deutschland are making it particularly tough for the confectionery industry to stay competitive globally. The difficult production environment is putting a major strain on German manufacturers, making it harder for them to maintain production volumes [1].
3. Cocoa Bean Price Hikes:
4. Climate change is the main culprit for cocoa beam price hikes. Adverse weather conditions and the cocoa swollen shoot virus in West Africa have contributed to unprecedented price increases, pushing cocoa prices up to $12,646 per metric ton in December 2024 [5].
5. The warmer temperatures and erratic rainfall patterns are making areas like the Ivory Coast and Ghana less suitable for cocoa production, while Nigeria and Cameroon could see expansion [2].
6. Global Demand and Production Shifts:
7. The global demand for cocoa is increasing at an alarming rate, driving plantation expansion and intensive farming methods. Often, this results in harm to biodiversity and the long-term resilience of ecosystems [5].
8. Nigeria is projected to see a whopping 40% increase in cocoa production by 2026, while Ivory Coast faces the possibility of a 50% decrease due to climate change [2].
9. Bureaucratic Challenges and Regulations:
10. German manufacturers are also grappling with burdensome bureaucracy and onerous regulations. These complexities are making it harder for companies to operate efficiently [1].
11. Impact on the German Confectionery Industry:
12. Germany's confectionery industry is experiencing a decline in production volumes, with the total production dropping to 4.2 million tonnes (-2.7%) in 2024. However, the value of production saw a positive surge of around €17.4 billion (+5.3%) [1].
13. Export Challenges:
14. Germany's export business for confectionery and snack items faced a slight setback in 2024, with an estimated 2.5 million tonnes shipped out, marking a -0.6% decrease compared to the previous year. Despite this, export sales soared by around +16.7% to €14.3 billion in 2024 [1].

These factors collectively contribute to the obstacles facing the German confectionery industry regarding cocoa bean imports and overall production costs.