This long weekend looks set to be chocolate eggs and hot cross buns galore, as more Aussies gear up to purchase Easter treats.
- The price of Easter treats continue to be buoyed despite food inflation easing more broadly
- That's largely due to a continued shortage of cocoa
- Despite that, more Aussies are planning to splurge on festive food items this long weekend
Around 17.3 million Australians have been tipped to spend over $2 billion on Easter food and chocolate, research from the Australian Retailers Association (ARA), in collaboration with Roy Morgan, found.
Those that join in on the long weekend’s festivities will likely pay more for their goodies than they would have last year.
The retail price of chocolate has risen close to 9% over the last 12 months, according to analysis by global agribusiness banking specialist Rabobank.
That’s largely due to a “global deficit" of cocoa – the key ingredient in chocolate, RaboResearch associate analyst Pia Piggott (pictured below) said.
The majority of the world’s cocoa is grown in West Africa, in the Ivory Coast and Ghana.
Hip pocket pain for Aussie sweet tooths
“There is no single root catalyst for this deficit,” Ms Piggott said.
“It is a combination of a range of agricultural and other factors, including adverse weather conditions, ageing trees and disease in crops.
“There are also other challenges for growers, including increasing sustainability regulations and requirements – including in import markets – which are also limiting supply growth.”
The ticket prices for many chocolate namesakes, including products by Cadbury and Ferrero Rocher, have jumped year-on-year.
The price of a Cadbury dairy milk chocolate block has lifted 50 cents since March 2023, to retail at $6.00 a block right now, eToro analysis of Coles prices found.
The price of Ferrero Rocher Easter eggs have also climbed 50 cents, with the treats now costing consumers $8.00 apiece at full price.
The price of snacks and confectionery has remained stubborn in recent times despite food inflation easing more broadly.
This is despite chocolate prices holding steady over the past four months according to Savings.com.au's Grocery Price Index.
The consumer price index (CPI), measured by the Australian Bureau of Statistics, rose 4.1% over the 12 months to the December quarter.
The price of food outpaced that slightly, lifting 4.5% year-on-year, while the price of snacks and confectionery jumped 6.8%.
“Globally, consumers will be feeling the pinch when it comes to buying easter treats this year, and Aussies are no exception,” eToro market analyst Josh Gilbert said.
He noted that, on top of soaring cocoa prices, consumers are being charged more at the checkout due to rising transportation, labour, and packaging costs.
Chocolate prices not expected to ease any time soon
And chocolate fanatics mightn’t realise hip pocket relief any time soon.
“As it stands, the elevated chocolate prices are poised to become the norm,” Mr Gilbert said.
“This is due to the need for producers and retailers to replenish their stocks at these higher rates.
“Meanwhile, the next cocoa harvest is slated for October, and it typically takes up to five years for new production to yield results.”
However, cocoa supply chain woes haven't appeared to deter more than 17 million sweet-toothed shoppers.
“Roughly one million more people will be buying Easter treats this year, which coincides with Australia’s population growth of 2.4% over the past year,” ARA CEO Paul Zahra said.
“Australians are under severe pressure right now due to the rising cost of living and interest rate hikes, but for many Easter is a time to relax and enjoy special time with family and friends.
“Whilst shoppers are continuing to tighten their purse strings, these special occasions are a welcome time of indulgence.”
"Easter inflation: Aussies to spend big amid ‘global deficit’ of chocolate" was originally published on Savings.com.au and was republished with permission.