Key Challenges in the Chocolate Manufacturing Industry
Chocolate is among the most famous flavors globally. Cocoa is a vital ingredient in chocolate manufacturing but has had reports of slave labor in recent years. Chocolate confectionery retailers and manufacturers face many challenges today that make chocolate production challenging.
Rise in Cost of Raw Materials
There has also been an increase in the cost of raw materials, extensive pressure, and government regulation. In 2015, there was inflation where the cost of raw materials sky-rocketed to record levels.
Chocolate is still one of the best consumer goods globally. It continues to innovate even when other products are becoming stale. This is a perfect time for the chocolate manufacturing industry to flourish, but it also goes through many challenges. Organizations are handling these challenges slowly and expect lower environmental growth for some time.
Increasing Number of Competitions
New snacks are also giving the chocolate manufacturing industry tough competition. There are also negative chocolate concerns that lower sales in North America and Western Europe. The introduction of new snacks like nuts and energy bars has pulled huge audiences looking for healthier confectionery alternatives.
These products are in the market to stay and will stagnate the chocolate manufacturing industry. Another huge threat to the chocolate manufacturing industry is a limited market in Asia and the Middle East. Chocolate exceeds the price of most products in these regions, explaining why they are rare. Chocolate is mainly standard with upper- and middle-class people in these countries. Manufacturers should counteract this issue by creating local manufacturing facilities and lowering the bar price.
Lower Yield by Cacao Farmers
Yields in most cocoa farms are low because of the dated practices. Poor farmers now experience light droughts and odd weather patterns. The fatal virus called CSSV is also a massive threat to the cocoa industry. After getting this virus, trees are not curable, and most are cut down. This is a significant contributor to the reduced production.
Experts have made good progress in detecting the virus in the early stages and planting forest trees near cocoa farms. Deforestation is a cause and effect of climate change. Poor cocoa farmers cut many trees to earn a living, causing deforestation. Organizations are making concrete moves to ensure afforestation occurs.
Controversy Regarding Child Labor
West Africa is the leading cocoa manufacturer and has had many child labor cases. Most cocoa farmers are poor and do not have labor costs. Cocoa also needs seasonal labor input, and most households depend on children. Work handled by children entails hazardous tasks, sometimes like carrying heavy loads, explaining why this industry is facing low yields.
The lack of access to financial services and low financial literacy are significant obstacles cocoa farmers face, which affect the chocolate manufacturing industry. Lack of proper finances degrades training, lowering the chances of upgrading to better agricultural practices.
Health Benefits of Chocolates
Chocolate is made using cacao tree seeds and is a popular commodity globally. It receives many negative praises because of its high sugar and fat content, and its use is associated with obesity, high blood pressure, and acne.
Research has stated that chocolate consumption helps to reduce cholesterol levels and prevent cognitive decline. It is believed that taking two cups of hot chocolate daily keeps the brain healthy and reduces memory decline. Consider buying bean to bar machines to get started with these health benefits.
Chocolate consumption also lowers the risk of getting heart conditions and lowers the risk of cardiometabolic diseases. Pregnant women are also advised to take an ounce of chocolate daily to promote fetal development and growth.
Final Thoughts
Chocolate is a common commodity in the global market but is undergoing significant challenges today. The chocolate manufacturing industry is coming up with ways to handle these issues, and the above article has outlined some. Kindly reach out for more information.
