Chocolate confectionery is one of Azerbaijani consumers’ favourite sweet products, and the variety of such products of Russian origin in Azerbaijan is increasing. This is as a result of continued sanctions against Russia imposed by the EU.
Sales of seasonal chocolate saw growth in 2019, as consumers demonstrated greater interest in innovative products offering specific flavours, such as pepper/chilli chocolate, mint chocolate, and others. Demand for flavoured chocolate grew as consumers experimented with new tastes; however, the overall share of flavoured chocolate confectionery remains low.
The average unit price depends on the currency exchange rate, as the vast majority of chocolate confectionery are imported. While Russian products tend to be cheaper due to their local production, they are perceived as being of lower quality than imported offerings, particularly Western brands.
Chocolate confectionery will continue to be controlled by international companies, as they have the power to absorb price changes arising from exchange rate fluctuations, and can appeal to consumers with a wide variety of products. However, Russian players have good prospects to expand shares in Azerbaijan as a result of sanctions imposed on that country by the EU and the US, which will encourage these players to focus on growing sales in non-EU countries such as Azerbaijan.
Kross Ltd remained the category leader in 2019, and saw a slight increase in value share, increasing the gap between itself and second-placed Mondelez International Inc. Kross benefits from being the official local distributor of Mars’ brands, offering a variety of globally famous brands, such as Snickers, Mars, Twix, Bounty and others, coupled with its long-standing presence in Azerbaijan.
Modern grocery retailers grew rapidly in Azerbaijan over the review period, fuelled by growth in the number of outlets and reshaping of the retail landscape towards convenience stores, supermarkets and hypermarkets. The rapid emergence of modern grocery retailers has contributed to increasing sales of chocolate confectionery, promotions implemented by players in the category, and recent new launches.
Gum is predicted to continue growing positively in coming years. Chewing gum is set to lead value and volume sales, as it is considered a healthier option than bubble gum.
Consumers’ improved financial position at the end of the review period resulted in them experimenting with new products to experience various gum tastes. Bubble gum continued to evolve due to a resurgence of the nostalgia trend.
Over the forecast period, gum is expected to see continued steady growth in Azerbaijan. The category’s performance will be underpinned by the improving financial positions of local consumers, and the further development of modern retailing.
Bubble gum includes giant global brands such as Mondelez International’s Love Is, Turbo and Toybox, as well as cheap Turkish and Chinese brands. Love Is and Turbo have been familiar to Azerbaijani consumers since the 1990s, as they have in all post-USSR countries.
Orbit maintained its lead of the gum category at the end of the review period. While Orbit saw a slight drop in share in 2019, following a surge in 2018, the brand’s recent impressive gains were largely maintained, with these occurring mainly at the expense of United Brands’ Dirol.
The rapid development of modern retailing helped control price rises in recent times, with a shift in the retailing landscape towards modern grocery retailers, a channel comprising supermarkets, convenience stores, forecourt retailers and hypermarkets. With their wide range of products and competitive prices, this channel is increasingly appealing to consumers.
Development of the economy is positively impacting sugar confectionery sales, boosting demand for more sophisticated products such as toffees, caramels and nougat, medicated confectionery and power mints. However, the main products in this category remain unpackaged sugar confectionery offerings such as halva and kozinaki.
Medicated confectionery will be the smallest category in Azerbaijan over forecast period, despite rising spending power and increasing health awareness among consumers. This category is fully dependent on imported products.
Boiled sweets will continue to dominate sugar confectionery in volume and value sales over the forecast period. Products in this category are available to all customers regardless of income group, and are sold through all retail channels.
The top brands in sugar confectionery are from international and global companies such as Perfetti Van Melle Group, Udarnitsa KF OAO, Konti Group, and Mars Inc. Local companies have lower levels of financial support to invest in advertising their products and to ensure space on retail shelves.
The main suppliers of sugar confectionery products are Russian and Ukrainian players. Local sweets are orientated towards traditional products such as kozinaki, halva, and boiled sweets.
Private label has a marginal share in the sugar confectionery environment, as modern retail is still concentrated in major cities. However, such products may gain share in coming years as modern grocery retailers attract an increasing number of consumers and continue to expand store networks.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Azerbaijan with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Confectionery industry in Azerbaijan, our research will save you time and money while empowering you to make informed, profitable decisions.
The Confectionery in Azerbaijan market research report includes:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Packaged Food market research database.