Inflation is lifting prices across the board, and nougat is no exception. With energy costs rising sharply and raw materials such as honey and sugar demanding higher outlays, producers in the Jijona and Alicante region are faced with raising their product prices by roughly 5% to 10%. They act cautiously, squeezing margins rather than passing every cost on, because the higher expenses outpace what they are able to transfer to shoppers. This means the next Christmas season could be more expensive for families.
The war in Ukraine and volatility in gas markets have a direct effect on energy prices, pulling up the cost of production for many sectors. The nougat industry, already feeling the heat from inflation, finds several firms tethered by tighter margins. As Christmas approaches, the Protected Geographical Indications of Jijona and Alicante highlight the strain on the regional nougat makers.
Companies such as Turrones Coloma, led by Amalia Coloma, describe a delicate balance. They note that electricity costs and some raw materials cannot be fully absorbed. In a short production window, costs rising rapidly have to be faced head on, making the financial landscape tougher for the sector.
Almond remains a stable material for nougat, offering some relief in the supply chain, yet the cost of other components has surged. Sugars, honey and various additives are up by about half compared with last season, and energy prices continue their climb. The sentiment from Coloma is clear: everything feels out of control and the future is uncertain.
To respond, companies are adjusting pricing. Coloma’s manager notes price increases around 8% to 10%, explaining that margins were previously kept thin for a long period of frozen prices. The message is simple: costs are rising, and the business cannot lose money.
Beatriz Sirvent, who handles marketing for Almendra y Miel, a family of brands including 1880, El Lobo and Doña Jimena, echoes the broader view. She points to a 40% jump in packaging materials like cardboard and plastics, alongside the higher costs for raw inputs. As a result, the same 8%–10% price band is being applied. Consumers are feeling the squeeze as well, so the strategic choice is to trim margins rather than erode competitiveness.
Despite these challenges, the belief is that demand for a traditional Christmas treat remains robust. The product is deeply entrenched in holiday routines, and the sector has weathered pandemics before. The expectation is that nougat will continue to find its way into homes come Christmas, even amid rising costs.
Hijos de Manuel Picó, led by Manuel López, emphasizes a mix of artisanal production and cost discipline. They have secured favorable almond prices but face steep increases in honey, sugar and energy. To mitigate the impact, the firm invested in solar panels on the factory roof. López notes that this move is not a cure-all, but it has helped as electricity prices climbed. In parallel, the company has raised prices by roughly 4% to 5 to stay competitive, while tightening margins to maintain market presence.
As the season unfolds, manufacturers remain cautiously optimistic. They aim to surpass last year’s performance, with a target of about a 5% rebound and sales levels approaching pre-pandemic figures. The consortium managing Jijona and Alicante’s production reports that around 150 million euros in nougat were billed by the member companies, rising to over 200 million when considering all Christmas desserts and regional varieties beyond Jijona and Alicante. Export activity is proving crucial, growing roughly 10%, with production beginning earlier each year to service foreign markets, especially non-EU destinations.
In sum, the sector is maneuvering through higher operating costs with a blend of price adjustments, efficiency measures and strategic shifts. The path ahead remains watchful, as firms balance the need to sustain craftsmanship with the realities of a tightening consumer landscape.