“Shoppers are already feeling the impact of the long-term commodity price volatility across a wide range of products, from daily basics to their confectionery items.”

The market researcher said that manufacturers have started to adopt smaller pack sizes “where they believe consumers will no longer buy into a specific product if there is a further price increase”.

Reformulating existing foods with lower cost ingredients is also a key consideration for manufacturers.

“It’s an expensive and time-consuming route from a research and development perspective, which is also made more complex by the need for many foods to be increasingly healthy. But it will be to utilise commodities going forwards to retain a competitive cost element as well as deliver on quality of product,” said Tharme.

Products that are feeling the pressure include:

• Cereals;

• Oils; and

• Cocoa