Chocolate inflation in South Africa stood at 8.180% in April 2023, according to GlobalData’s report on the prices of stock keeping units (SKUs) supplied through online retailers. In Q4 2023, GlobalData monitored the pricing of 239 chocolate SKUs from companies such as Dairy Milk, Lindt and Smarties that were sold by e-retailers. Buy the report here.
Pricing is crucial, especially in a challenging economic climate, as competitive pricing and price leadership impact consumers’ choices. GlobalData’s pricing analysis reveals that Woolworths-South Africa offered lowest prices of the total SKUs within the chocolate category from October through December 2023, followed by Pick n Pay and Makro. According to the analysis, the price range of $5 and below was the most competitive, with 210 SKUs.
The chart below illustrates price leadership among the covered retailers which offer the highest number of low-priced products in the category. Of all retailers, Woolworths-South Africa had greatest share of lowest prices for individual SKUs in chocolate in South Africa in Q4 2023.
Analysis of the quarterly price data showed that no discounts were offered for chocolate category by the retailers tracked by GlobalData. Among variants, the tracker revealed milk and white as the most popular (by number of SKUs) chocolate variants. These were priced 24.37% higher than the average price of a chocolate SKU.
Among the e-retailers tracked by GlobalData, the leading ones, based on the number of SKUs, were Woolworths-South Africa, Pick n Pay, Makro, and . According to the analysis, Pick n Pay had the lowest average unit price, while the retailer with the widest product assortment was Woolworths-South Africa.
The report brings attention to the intricate pricing dynamics within the chocolate market, examining both the SKU and retailer levels, and offering invaluable insights for stakeholders. Notably, Woolworths-South Africa, Pick n Pay and Makro stood out as prominent e-retailers, providing competitive pricing for a substantial number of chocolate SKUs. However, to comprehensively grasp chocolate market in South Africa, continuous tracking of SKU pricing over time is necessary.
For a more detailed analysis of pricing trends in the South Africa chocolate market, buy the report here.