- The latest figures show that consumers are happy to pay more for the indulgence offered by chocolate. Despite concerns about the rising trend in overweight, chocolate remains a popular indulgence food for many Norwegians as shown by the expected rise in retail volume for 2013. Producers understand the Norwegian love affair with chocolate, and appeal to the emotions of their consumers with frequent innovation supported by substantial marketing campaigns.
- Competition has been intense between the two leading competitors in chocolate confectionery, Mondelez Norge AS and Nidar AS, throughout the review period. Kraft Foods Norge AS is expected to continue to lead chocolate confectionery sales in 2013 under its new company name Mondelez Norge AS, a subsidiary of Mondelez International Inc. In October 2012, Kraft Foods Inc restructured its operations into two independently listed entities. Kraft Foods Inc spun off its North American grocery business under the Kraft Foods Group and renamed its largely snack-based, remaining operations Mondelez International Inc. According to Euromonitor International, the separation of the dynamically growing international business from the more moderately growing but higher-margin North American grocery arm allows each new entity to concentrate resources on development in their fewer core categories. Just three core categories, confectionery, biscuits and dairy, account for some 95% of Mondelez’s packaged food retail value sales.
- Cross-border shopping is hardly a new trend in Norway. Thrifty Norwegians have travelled across the border to Sweden for decades to purchase consumer products at a cost saving of up to 40% of Norwegian prices. What is noteworthy about cross-border shopping in 2013 is the steady increase in value sales as they will exceed the NOK11.6 billion recorded in 2012, and are likely to continue climbing steadily through the forecast period. Virke Handel, the retail division of a Norwegian commerce association, reports categories such as chocolate and sugar confectionery, which are heavily taxed by the Norwegian government, are recording the highest growth. The Norwegian Chocolate Manufacturers Association estimates total cross-border consumption is the equivalent of 8% of total consumption in Norway. With the current level of growth in cross-border shopping, this figure is likely to rise by 2018.
- The provisional growth in current value sales of 2% for 2013 is one percentage point lower than the CAGR of 3% for the review period. A decline in retail volume sales will underpin the sluggish growth in current value sales for 2013. A wide selection of substitute products for gum is available in Norway. While retail volume sales are expected to decline for gum, they are expected to rise to an uncharacteristically high level of 7% for pastilles, jellies and chews. Pastilles, mints and medicated confectionery offer many of the same benefits as chewing gum, such as sugar-free varieties, exciting flavours and fresh breath, and compete intensely for sales.
- Wrigley Scandinavia AB, subsidiary of Mars Inc, is expected to continue to lead the category in 2013 with a 61% retail value share after dominating the category during the review period. Wrigley brands lead all categories for gum in Norway. Wrigley leads bubble gum and sugarised gum through the success of the Hubba Bubba and Juicy Fruit brands respectively. Extra is Wrigley’s leading brand of sugar free gum. Sugar free gum, both functional and non-functional, will account for 90% of Wrigley’s overall gum sales in Norway in 2013.
- Gum is expected to decline in terms of constant value sales during the forecast period. In spite of intense periods of competition from smaller players such as Cadbury Norway AS and Valora Trade Norway AS, Wrigley is likely to remain the well-established leader throughout the forecast period.
- The overweight epidemic has reached Norway and the Norwegian Ministry of Health and Care is engaged in addressing this problem. Recent statistics from the Norwegian Institute of Public Health (FHI) show an alarming trend where the proportion of overweight children and youths has increased steadily over the past 30 years. According to FHI, approximately 17% of 15-16year olds were overweight in 2011.
- Cloetta Norge AS, subsidiary of Cloetta AB, will lead sugar confectionery in 2013 with an expected 22% share of current value sales, due to its strong position in pastilles, gums, jellies and chews. Cloetta Norge AS will record the biggest increase in value sales because it was established in 2012 following the acquisition of Leaf International BV by Cloetta AB. Leaf International BV had a well-established subsidiary in Norway called Leaf Norge AS, which successfully marketed strong brands including the Läkerol and Malaco ranges. Cloetta Norge AS has taken over marketing the Leaf brands as well as the Cloetta brands, which were distributed by Galleberg AS.
- Sugar confectionery will continue to battle its unhealthy image over the forecast period especially with respect to the new regulations limiting marketing of unhealthy food to children. Producers have the opportunity to reposition strong brands with health-promoting product options ranging from adding natural juices to sweetening sugar confectionery with stevia, a natural sweetener, instead of sugar. Nidar AS is using smaller packages to help regulate consumption of ‘unhealthy’ food. However, sugar confectionery will remain a treat for Norwegians who want to indulge themselves during a trip to the cinema or on a Saturday night. Brands with the highest equity and domestic appeal are likely to continue to perform well especially if producers add a health-promoting attribute. Smaller brands particularly those targeted at children are unlikely to perform well during the forecast period.
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Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Norway with research from Euromonitor's team of in-country analysts.
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The Confectionery in Norway market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Confectionery in Norway?
- What are the major brands in Norway?
- With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
- How are manufacturers addressing consumer concerns over health and obesity?
- What does the future hold for ethically sourced products?
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This industry report originates from Passport, our Packaged Food market research database.
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