British families stocking up on festive treats have been hit with a double whammy concerning a seasonal favourite. The iconic Terry's Chocolate Orange is now significantly smaller and more expensive than in previous years, marking a stark example of ongoing consumer trends.
The Shrinking, Costly Reality of a Festive Staple
Analysis reveals that the Terry's Chocolate Orange being sold this Christmas weighs 12 grams less than it did at the same time last year. This represents a size reduction of 8 per cent, which comes on top of a previous 10 per cent cut made back in 2016.
Concurrently, the price has skyrocketed. Data from market researchers Assosia shows that across the UK's big four supermarkets, the full price has surged from £1.24 in December 2022 to approximately £2.25 today. This is a staggering price increase of 81 per cent in just three years.
Experts Decode the 'Dramatic Shift' in Affordable Indulgence
Industry analysts see this as part of a broader pattern affecting consumers. Julia Buech, a senior consumer foods analyst at Rabobank, described the trend as "a dramatic shift for a category built on affordable indulgence."
Manufacturers point to severe pressures in their supply chains. Mondelez International, which owns Cadbury and Toblerone as well as the Terry's brand, stated it is facing "significantly higher input costs across our supply chain." The global cocoa market is under particular strain.
Chris Jaccarini, a food and farming analyst at the Energy and Climate Intelligence Unit, explained the long-term challenges in cocoa-growing regions: "To get rid of it you have to rip the tree out, treat the soil and then plant a new tree." Meanwhile, Jason Archie-Acheampong of the Fairtrade Foundation noted that while farmers try to adapt, they remain "price takers – they have to take what they are being offered."
Buech also highlighted that "labour costs in particular are climbing in Europe, with minimum wages going up in many countries."
Broader Context and Political Factors
This warning follows claims from The Food & Drink Federation, which partially blamed a new packaging tax from the Labour Party government and increases in national insurance contributions for workers.
Interestingly, the Office for National Statistics recently reported a fall in inflation, driven partly by lower food prices. Grant Fitzner, the ONS chief economist, said: "Lower food prices, which traditionally rise at this time of the year, were the main driver of the fall, with decreases seen particularly for cakes, biscuits, and breakfast cereals." This suggests the Chocolate Orange's price hike is an outlier against a general easing for some grocery categories.
The combination of shrinkflation and aggressive price increases for this beloved product underscores the complex pressures on food manufacturers and the changing reality of what constitutes an 'affordable' luxury for UK shoppers during the holidays.
