Executive Summary

Jul 2018
Prospects
Consumers crave for indulgence remains strong

As an affordable luxury, chocolate confectionery helps satisfy consumers’ craving for indulgence, even during the economic downturn or other challenging times. This was clearly evident in the consistent, modest growth of volume consumption, more or less in line with population growth in the past decade in Canada.

Premium and ultra-premium segments gain traction

As consumers continue to crave indulgence, they are increasingly gravitating towards higher quality, more premium offerings in chocolate confectionery. High-end brands including Brookside enjoy consistent, robust growth due to positioning and innovation, including Brookside 73% Dark Chocolate launched in early 2018.

Healthy snacking trend gives rise to smaller formats and pack sizes

As witnessed towards the end of the review period, bite-size chocolate, promoted as “minis”, “bites”, “buttons”, or “pieces”, is increasingly popular among Canadian consumers, which is evident in the stronger growth of chocolate pouches and bags. The rising consciousness has led to greater focus on healthier snacking options.

Competitive Landscape
Nestlé Canada, Hershey Canada and Cadbury Adams Canada remain top three players

The leading three players, namely Nestlé Canada, Hershey Canada and Cadbury Adams Canada, continued to dominate chocolate confectionery in Canada, although they have experienced some decline in value share in 2018. This is partly due to the premiumisation trend that benefits premium chocolate makers, including Lindt & Sprüngli Canada Inc and Ferrero Canada Ltd.

Brands diversify business to improve growth

As chocolate confectionery continued to register moderate growth over the course of the review period, chocolate makers diversified their businesses hoping to capture better growth. Hershey, for example, strengthened its offerings in trail mixes (part of savoury snacks) including Oh Henry! Mix, Hershey’s Mix and Hershey’s Cookies ‘N’ Crème Mix in 2017-2018.

Prospects
Gum continues to shrink due to a lack of innovation and other factors

Gum has been declining for years and 2018 witnessed continuation of the trend due to a number of factors. First, one of the major issues was the lack of newness or uniqueness in the category.

Use of natural sweeteners is increasing

Although artificial sweeteners such as aspartame and sucralose have received approval and endorsement over safety and certain efficacy in reducing calorie consumption, the perception of these sugar substitutes among Canadians is not particularly positive and controversy around them continues. Across many markets in food and beverages, artificial ingredients have been facing ever-mounting negative receptions, as witnessed in breakfast cereals, ready meals, sugar confectionery, soup, juice and carbonates.

Bubble gum and sugar-free chewing gum suffer the most

Bubble gum suffered the most among all categories in gum. In addition to the aforementioned lack of innovation and rising competing products, bubble gum is increasingly associated with less favourable social images such as being less fashionable.

Competitive Landscape
Gum remains highly consolidated

In the mature and declining landscape of gum, Mars Wrigley Confectionery Canada and Cadbury Adams Canada maintained their combined dominance. One of the major events in 2018 was the full integration of Mars Chocolate and Wrigley Canada with the establishment of Mars Wrigley Confectionery Canada, which is expected to give the company a boost in efficiency and speed to market, according to industry sources.

Niche brands experience better growth

Despite the dominance of the two leading players in gum, some brands managed to gain some significance, expanding distribution channels and shelf presence. Pur, for example, has been experiencing rapid expansion in distribution and growth in sales in Canada.

Prospects
Rising health consciousness restricts growth

Increasing consciousness over health and wellness has been the key factor leading to the stagnation of sugar confectionery in the past decade. The weakening in sales has been particularly evident towards the end of the review period, where growth in volume consumption marginally declined.

Mints remains best performer, while medicated confectionery remains positive

In the midst of overall stagnation of sugar confectionery, mints including power and standard mints, exhibited healthy growth over the course of the review period. This was mostly due to the conversion of many previous gum users to mints, as it is more convenient without the need for disposal if the consumer demands a breath freshener.

Niche segment experiences rising interest

Against the backdrop of widespread weakness in sales of sugar confectionery, a number of smaller segments managed to gain positive growth. For instance, more natural offerings are gaining traction with the latest example of Gem Gem’s Ginger Candy from US-based Brother's Trading LLC launched in late 2017 in Canada, claiming superior ingredients such as pure cane sugar and fresh ground ginger purée.

Competitive Landscape
Cadbury Adams Canada remains leading player

Cadbury Adams Canada, owned by Mondelez International Inc, remained the largest player in sugar confectionery in 2018. The company has witnessed share gains since 2014, largely owing to its strong presence in growth areas including mints and medicated confectionery.

Smaller players focus on artisanal and health-focused products

While consolidation is ongoing and the commoditisation trend continues to expand in categories such as boiled sweets and lollipops, smaller players are carving out niche segments where they can establish differentiation. Russell Stover, a premium chocolate maker, highlighted its new “no sugar added” sugar confectionery offerings in 2017 and 2018.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Confectionery in Canada

Samples FAQs about samples

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview

Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Canada 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 Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Canada 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 Canada?
  • What are the major brands in Canada?
  • 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?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Chocolate Confectionery

Gum

Sugar Confectionery

Packaged Food in Canada - Industry Overview

EXECUTIVE SUMMARY

Packaged food sees stable growth while continuing to evolve
Growing impact of clean label movement
Leading players facing challenges, while niche segments attract smaller players
Online retailing, mixed retailers and hypermarkets see most dynamic growth
Moderate growth ahead, with increasing uncertainty

FOODSERVICE

Sales to Foodservice
Foodservice experiences stable and stronger growth amid rising headwinds
Growing demand for plant-based food presents challenges and opportunities
Unique experiences and health positioning increasingly critical
Consumer Foodservice
Demographic change and economy impacting consumer foodservice
New era of customer interaction fast approaching
Key trends in menu design

CATEGORY DATA

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources

Related Reports