Luxury Goods Trend Formula in Recession... Chocolate Sales Surge in the US

Expected to Reach 34 Trillion Won This Year

Despite rising chocolate prices in the United States, chocolate sales are booming. Analysts suggest that consumers, who have tightened their wallets during the economic downturn, are enjoying compensatory consumption of 'small luxuries' like chocolate.

According to market research firm Euromonitor International on the 10th (local time), chocolate purchases in the U.S. this year are expected to reach $26 billion (approximately 34 trillion won), a 5.7% increase compared to the same period last year. Sales volume is also expected to rise by 1.9%. Euromonitor forecasts that this year’s chocolate sales volume in the U.S. will show the largest annual increase since the 2009 global financial crisis.

In particular, sales volume is increasing despite soaring chocolate prices. The supply of cocoa beans, the raw material for chocolate, has hit its lowest level in 40 years, driving up chocolate prices. According to the London ICE Futures Exchange, cocoa futures prices have surged about 20% since the beginning of the year. This is the highest level in 13 years since mid-2010.

Experts analyze this as a phenomenon where luxury goods sell well during recessions. Bloomberg reported that chocolate also sold like hotcakes during the 2009 global financial crisis.

Kal Quazi, an analyst at Euromonitor International, said, "This is a continuation of compensatory consumption by people who had to stay home during the COVID-19 pandemic without traveling, shopping, or dining out," adding, "The consumption trend for everyday luxuries that emerged during COVID continues even during economic recessions." Amid global recession concerns, consumers who have closed their wallets on overseas travel and luxury goods are increasing spending on small luxuries like chocolate.

Nick Graham, Global Insights Lead at Mondelez International, said, "Chocolate plays the role of a snack, a comfort item, and a consumer good directly linked to compensatory psychology during recessions," adding, "The emotional value chocolate provides to consumers is a factor that can justify recent price increases."

This content was produced with the assistance of AI translation services.