27-05-2025
Can AI-Powered Demand Forecasting Help With Viral Cravings?
Angel hair chocolate is the latest viral sensation.
Ever wondered how a TikTok trend, Dubai Chocolate, could shake up the global pistachio market? That's precisely what this viral craze has done, bringing the pistachio shortage into the spotlight. And now with Angel Hair chocolate becoming the next confectionary craze, let's take a look at how smart supply chain strategy can turn viral cravings into sweet profit.
Pistachio prices have surged from $17 to nearly $23 per kilogram for the last months, according to industry resorts. What began as a niche item, Dubai chocolate became a global sensation after a TikTok video posted went viral, making over 120 million views.
As the world's second-largest pistachio producer, the US experienced a reduced harvest. However, Turkey, a key player in the global pistachio market, had the largest-ever crop, driving a 9.1% increase in global pistachio production. Iran, a major exporter, has responded by increasing pistachio exports to the UAE by 40% in 6 months.
Major chocolate manufacturers have launched their pistachio-based confections but are facing similar supply chain challenges as they compete for limited raw materials.
But now we have a new internet sensation Angel Hair Chocolate. And with cacao prices soaring (up 90% since the start of this year), the rise of the new Angel Hair Chocolate trend actually makes perfect sense.
Let's unwrap the reason behind and take a look at how smart supply chain moves can turn chaos into sweet, sweet profit.
Imagine a heavenly white chocolate bar filled with delicate, melt-in-your-mouth cotton candy strands, also known as 'angel hair', with subtle fruity notes inside. Sounds magical, doesn't it?
Here is the twist: white chocolate is a chocolate made from cocoa butter, sugar, and milk solids, while the main component of the hair-like treat inside is purely sugar. This means the chocolate bar's primary component is sugar, butter, and syrups rather than cocoa. It is a genius move of how the industry is adapting to the shortages and still making people hyped about it.
Social media is not just a marketing tool but a great real-time barometer to understand and predict shifting consumer tastes. Unlike conventional methods that rely solely on past sales, AI-powered demand forecasting can help companies by using machine learning algorithms to detect viral trends and shifts in sentiment.
Imagine a chocolate manufacturer leveraging predictive analysis to predict consumer taste by scanning social media for emerging flavor trends for a spiced or fruit infused chocolate. It can then suggest recipe adjustments that reduce the reliance on scarce cocoa by blending in alternative sustainable ingredients without compromising taste or texture. This means that supply chains need to anticipate not only what products will be in demand but also when and in what quantity, allowing for more precise inventory and production planning.
Another innovative use of AI would involves integrating satellite data on cocoa farm conditions and predictive analytics on harvest yields. Companies can now anticipate raw materials and predictive analytics on harvest yields and predict raw material shortages months in advance. This creates the flexibility to adjust procurement, production schedules, and inventory avoiding costly overstock or stockouts, which helps supply chains reduce risks, improve customer satisfaction, and optimize resource allocation across the entire supply chain ecosystem.
It becomes a win-win-win situation for businesses that innovate with alternative ingredients, consumers seeking new trend options, and supply chains that can better align in inventory and production with evolving market signals.
The real winners in today's market are those companies that can influence and deliver what customers want, when they want. Because catching trends at the perfect moment is like holding Willy Wonka's golden ticket. But with consumer demand shifting rapidly amid persistent shortages, alongside mounting tariffs and regulations squeezing margins, companies face the tough challenge of striking the right balance between staying resilient and managing costs effectively.
'The answer to the cost vs. resilience question is somewhere in the messy middle, with one sometimes taking precedence over the other, but both are always on supply chain leaders' minds,' notes Richard Howells, VP of Supply Chain Management, SAP.
To find the right balance, businesses are adopting strategies that align supply chain performance with overall business objectives, enhancing agility through geographic diversification and nearshoring, and carefully considering regulatory and tax impacts when restructuring operations. An essential part of this process is integrating technology systems and data analytics helps create a more cohesive and responsive supply chain.
And leveraging scenario planning and AI-powered insights while recognizing that 'AI alone is not enough', organizations can balance cost management with adaptability, turning disruption into opportunity in volatile markets. And the companies that succeed are those that embrace complexity, constantly adjusting and innovating to find the sweet spot where efficiency meets adaptability.
