- Chocolate confectionery managed to withstand the adverse economic environment in 2014, becoming the envy of other packaged food categories. The high unemployment rate and falling purchasing power seemed not to deter Spaniards from purchasing and enjoying a self-indulgent piece of chocolate. In fact, some industry experts have suggested that consumers are finding in chocolate a way to temporarily cheer themselves up and forget about their economic adversities. According to them, this may be one of the reasons – but not the main one – favouring the overall positive performance of chocolate confectionery.
- Nestlé España SA (Grupo) continued to lead sales of chocolate confectionery in Spain in 2014, accounting for around one quarter of overall value sales (24%). Its long-established brands, as well as its firm presence across all distribution channels, played a major role in the company’s positive performance. In fact, its portfolio included the leading brand in several product categories: Kit Kat continued to lead the countlines category (with a 31% value share), Extrafino remained the preferred tablets brand in Spain (22%), and Caja Roja retained the number one position in boxed assortments (22%), after gaining the lead from Ferrero Rocher (Ferrero Ibérica SA) in 2013.
- Chocolate confectionery is set to witness slow but steady value growth, at a CAGR of 1% at constant 2014 prices. Sales will reach €1 billion by 2019. However, it should be noted that some of the categories are set to post very different performances going forwards compared to the review period.
- The drop in the purchasing power of consumers since the onset of the recession has resulted in a reduction in spending on non-essential products. This factor continued to affect the performance of gum in Spain during 2014. The difficulties faced by the impulse channel, whereby declining sales are contributing to outlet closures, resulted in major branded manufacturers losing ground for another consecutive year. The shift towards modern distribution continued to take place across 2014, with consumers showing a preference for those channels that offer the best value for money. This benefited the performance of private label products and other smaller labels, while also limiting the performance of value sales in the category in 2014.
- Cadbury España SL leads gum in Spain, marginally ahead of Wrigley Co; both recorded a value share of 39% in 2014. The strong positions of these two companies is attributed to the popularity of their brands in Spain – Trident (Cadbury España SL) and Orbit and Five (Wrigley Co SA) – as well as their wide distribution networks and strong presence in the retail environment. Both are committed to constant efforts in terms of innovation, setting the pace in the category in terms of new product launches. Despite the strong position of these two companies, they have struggled to maintain a stable share across the review period, explained by the poor performance of the impulse channel, and the shift in consumption towards private label products and other more economic brands.
- During the forecast period, it is expected that high unemployment will continue to shape the consumption patterns of Spaniards, who will further reduce their expenditure on non-essential items. This factor will negatively affect the performance of gum, especially in the short term. The decline in demand, the weakening share of the traditional grocery retailers channel and the pressure from low-priced and private label products will be among the main obstacles to the growth of the gum category in the forecast period.
- The category of sugar confectionery was negatively impacted from the reduction of spending on non-essential products by consumers. During 2014, despite signs of recovery in the economy, Spaniards witnessed little improvement in their income and purchasing power and, as a result, continued to rationalise spending, which in turn hindered the performance of sugar confectionery. The category also suffered from the decline in sales through the impulse channel, which accounts for over half of total category sales. The positive performance of the category in modern grocery retailers was the only factor that prevented the category from declining further in 2014.
- Perfetti remained the leader of sugar confectionery in Spain, with a value share of 15% in 2014. The strong position of the company is attributed to the popularity of its Chupa Chups brand, which dominates lollipops with a 54% value share, and Smint, which dominates power mints, with a share of 90%. The second-ranked operator in 2014 was Cadbury España SA, with a value share of 12%. Cadbury España SA competes with brands such as Dulciora in pastilles, gums, jellies and chews, and Halls and Respiral in the category of medicated confectionery.
- During the forecast period, high unemployment in Spain, which is expected to remain above 25% in the first two years of the forecast period according to official sources, will continue shaping consumption patterns. In this context, consumers are expected to continue to reduce unnecessary spending, a factor that will limit the performance of packaged food categories that are not considered essential, such as sugar confectionery. However, given the fact that such products are often regarded as a small escape from daily problems, in line with other indulgence products, the category could benefit in the short term. In the second half of the forecast period, a substantial recovery is anticipated in Spaniards’ incomes, which could propel demand for sugar confectionery.
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Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Spain with research from Euromonitor's team of in-country analysts.
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The Confectionery in Spain 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 Spain?
- What are the major brands in Spain?
- 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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