Boxes of chocolates are increasingly being bought as cheaper alternatives to other types of gifts in the run up to Christmas, confectionary firms Nestle S.A. (OTC:NSRGF, VTX:NESN) and Cadbury have said.
Cheaper prices for chocolate products than the likes of toys after a year of high inflation has helped to drive sales in recent months, the duo said.
"Boxed chocolates have had a particularly strong start,” Nestle UK & Ireland category manager Fran McCargo said, pointing out a 8.7% jump in sales over the three months to November between 2022 and 2023.
Sales of “twist wrap chocolates” increased by 2.1% over the same period, she continued, with an appetite for cheaper gifts fuelling the rise.
Such trends towards “less expensive indulgences” are strongest among young adults meanwhile, according to communications manager at Cadbury-owner Mondelez (NASDAQ:MDLZ), Susan Nash.
“Through challenging times, consumers often review their discretionary spending,” she said, with higher mortgage costs coupling with inflation in squeezing consumer pockets.
“However, they are less likely to reduce their spending on confectionery gifting.”