Britons turning to chocolate and coffee to boost mood amid slowdown

Britons are cheering themselves up with mood boosters such as chocolate and coffee as well as luxury lip balms and false nails, stated a report today (14), indicating the return of trend of rising sales of “affordable luxuries” in economic downturns. 

Coined as lipstick effect or “indulgence index”, a report in The Guardian pointed out how consumers are buying and treating themselves to posh chocolate and coffee to enjoy at home. 

After clocking up big sales during the pandemic, the ethical chocolate brand Tony’s Chocolonely said it is once again experiencing demand for its bars.

“September was the first month this year where we saw the value of chocolate bars bought go back up again, after a really strong prior year,” the report quoted Ben Greensmith, the brand’s UK country manager, as saying. “We might be seeing this uptick again as more people treat themselves at home.” 

The report comes weeks after Tony’s Chocolonely announced drop in new retail price in the UK for its 180g chocolate bars from £3.49 to £2.99. As the company noted, the recent impact on market dynamics caused by the war in Ukraine and steep rise in inflation has seen big cost increases for food brands, and Tony’s Chocolonely expects to see the cost of its goods increase by 11 per cent year on year.  

The company added that it believed that its latest pricing strategy will help draw attention and act as a point of difference from companies within the sector.

The Guardian further added that in a recent poll nearly half of chocolate eating-adults (56 per cent) told Mintel that eating premium bars “was a good way to boost your mood”. 

“During Covid a lot of people thought consumers would eat more healthily but the reverse happened,” Jonny Forsyth, an analyst at the market research firm Mintel, said. “They indulged more because they felt psychologically under pressure and turned to comfort food.” 

Now with energy bills and mortgage payments to worry about Forsyth said people were looking for something to give them a bit of a boost during the week. 

“Food and drink is still relatively affordable and gives a visceral sense of pleasure and escapism. We’re already seeing it and I think this trend will only increase through what will probably be a very dark winter,” he added. 

Off trade beer sales are also seen rising as people are preferring to stay at home rather than going out and spending in pubs. The report quotes the complaint of Tim Wetherspoon, the founder of the JD Wetherspoon chain, that its pubs are struggling because “people are staying in and drinking cheap supermarket beer”. 

The report follows the forecast by executive director of the International Coffee Organization (ICO) that consumers will choose to drink coffee at home rather than in restaurants and cafes due to rising inflation and recessionary risks.