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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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 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:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Packaged Food market research database.