Executive Summary

Aug 2019
Prospects
Players invest in products and retail penetration in line with consumer trends

A trend towards indulgence and wider availability of products continued to boost chocolate penetration amongst all segments of the population in 2019, and contributed to value growth. Players increasingly seek to explore opportunities presented by all consumer groups, with companies offering both local and imported products making efforts to improve awareness of their main brands.

Healthier and indulgent offerings and provenance appeal to affluent consumers

Functional and all-natural dark chocolate claims continue to impact overall the health and wellness perception in chocolate confectionery, as well as reflecting the indulgence trend. Such products are particularly popular among a wider base of middle- and upper-income consumers, whose interest in added value and less processed proposals continues to rise, along with their disposable incomes.

Consumer sophistication and trading up as multinationals woo adults

Smaller packaging sizes continue to drive sales amongst younger consumers and children, offering access at lower unit prices and thus making chocolate confectionery more affordable. Imported international brands, such as those from Mars Costa Rica SRL, are however seeking to compete against these small low-priced packs via aggressive pricing strategies.

Competitive Landscape
Increased interest in upmarket products results in share gain for artisanal producers

While the bulk of the chocolate confectionery environment remained fairly static in value share terms in 2019, the growing momentum of high-end local artisanal brands continued to develop, resulting in an increased share of sales held by others. Artisanal products target high-end local buyers and tourists interested in dark chocolate products.

Polarisation sees high-end launches for connoisseurs, and cheaper alternatives for lower-income groups

Polarisation in chocolate confectionery continues, with an increasing number of generic and economic alternatives such as those provided by local leader Cooperativa de Productos de Leche Dos Pinos, RL, and its mass-orientated brand Gallito. This company keeps pushing forward with small presentations of chocolate proposals aimed at low- and middle-income consumers.

Dos Pinos invests in modern grocery retailers and nostalgic campaign

Local brand Gallito leading continued to lead the chocolate confectionery category in 2019, with manufacturer Dos Pinos investing in additional penetration efforts through modern grocery retailers. In this channel, chocolate pouches and bagged presentations continue to compete with other types of imported added value proposals, such as Mars and Hershey’s, based on more affordable pricing.

Prospects
Gum loses out due to functional alternatives and younger consumers’ diverse spending

Gum saw a continued weak performance in volume terms in 2019, with virtual stagnation, while value growth was largely the result of rising unit prices. One factor contributing to the category’s weak performance is that chewing gum is no longer seen as fashionable by the average middle-income younger buyer.

Gum loses out as consumers shift towards mints for breath-freshening purposes

New added value, adult-orientated products continue to stimulate gum sales across a broader base of middle- and upper-income consumers, particularly millennials. Such consumers demonstrate interest in these products due to their greater availability and affordability.

Bubble gum pops due to parental concerns regarding oral health, with shift to chocolate alternatives

Bubble gum continues to fade as a relevant confectionery option for children. Parents are increasingly reluctant to allow their children to consume such products, due to the potential adverse impact on oral health, as well as potential digestive issues arising from consumption of sugarised bubble gum.

Competitive Landscape
Trident maintains dominance, appeals to consumers with new flavours and pack formats

Leading Mondelez brand Trident continues to set the pace in terms of availability and affordability, remaining focused on teenagers and adult-orientated products, with sugar-free proposals. New flavours (such as Watermelon-mint and Fruti-mix), longer-lasting flavour claims, as well as traditional value packs with free gum, continue to underpin the performance of the leading chewing gum brand.

Ice Cubes and Mentos aim to compete with specific retailing strategies

New added-value imported proposals such as Ice Cubes and Mentos keep developing availability across a broader base of modern grocery retailers, such as supermarkets and convenience stores, where they aim to compete directly with Trident in terms of pricing (as in the case of Ice Cubes), or by developing a higher end position to address demand among more affluent adult buyers, as in the case of Mentos. Both products aim to provide a higher quality image in comparison with similar imported brands, including Trident and Orbit.

Larger packaging formats still purchased for use in party bags and piñatas

Child-orientated brands, including economy domestic proposals such as Buby, remain available through small independent local grocers, where they target lower and middle-income children by offering single packaging presentations at very affordable unit prices. Other bubble gum proposals such as the regional Colombina, instead focus on modern grocery retailers, where they offer larger packaging presentations (near 400g) at very competitive unit prices.

Prospects
Modern grocery retailers compete on price but independent small grocers important for impulse purchases

The traditional sugar confectionery offer, which is aimed at children, continues to move towards more affordable and larger packaging formats. This sets the pace in terms of sales through supermarkets, discounters and hypermarkets, where demand for these products remains related to children’s’ parties and seasonal celebrations (such as leaving school and Halloween).

Health concerns impact traditional products, while benefiting mints

Growing awareness in relation to the risks associated with high sugar intake amongst a broader base of middle- and upper-income consumers continued to slow the performance of more traditional sugar confectionery products. This was particularly evident among a broader base of young adult buyers and millennials, especially when they become parents.

Functional, natural and nostalgic options appeal to adults

New development opportunities continue to emerge across other sugar confectionery options, such as traditional nostalgic proposals, for example those developed by the local player Tricopilia, as well as in the case of sugar-free products and value claims of all-natural ingredients. In this context, adult-orientated functional products such as medicated confectionery also continue to grow at a dynamic pace, benefiting from a wider range of flavours and imported brands to choose from.

Competitive Landscape
Dos Pinos develops nostalgic Gallito but faces competition in modern and traditional grocery retailers

The sugar confectionery environment was largely static in value share terms in 2019, with only marginal changes. The category continued to be led by Mondelez Costa Rica Ltda, followed by the dominant local player, Cooperativa de Productos de Leche Dos Pinos, RL.

Sugar-free products benefit from health trend and Walmart’s Great Value launch

A growing base of imported brands continue to develop the offer of sugar-free confectionery proposals, where brands such as Brach’s, De Bron and the local Sweet Well continue to gain momentum across modern grocery retailers. As a result of this rising trend, Walmart has also opted to offer its own adult-orientated sugar-free products under its Great Value private label range.

Adult consumers show growing interest in products with functional properties

Adult-orientated brands such as Halls, Ricola, Tic-Tac, Mentos, Altoids and Cracked Candy continue to achieve more dynamic growth rates in comparison with more generic/child-orientated alternatives. As well as providing a range of sugar-free options, they also meet consumers’ increasing requirements for products offering more functional claims, such as breath-freshening attributes, or relief from a sore throat.

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Confectionery in Costa Rica

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Overview

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

The Confectionery in Costa Rica 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 Costa Rica?
  • What are the major brands in Costa Rica?
  • 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.

Confectionery in Costa Rica - Category analysis

Chocolate Confectionery

HEADLINES

PROSPECTS

Players invest in products and retail penetration in line with consumer trends
Healthier and indulgent offerings and provenance appeal to affluent consumers
Consumer sophistication and trading up as multinationals woo adults

COMPETITIVE LANDSCAPE

Increased interest in upmarket products results in share gain for artisanal producers
Polarisation sees high-end launches for connoisseurs, and cheaper alternatives for lower-income groups
Dos Pinos invests in modern grocery retailers and nostalgic campaign

CATEGORY DATA

Table 1 Sales of Chocolate Confectionery by Category: Volume 2014-2019
Table 2 Sales of Chocolate Confectionery by Category: Value 2014-2019
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2014-2019
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2014-2019
Table 5 Sales of Chocolate Tablets by Type: % Value 2014-2019
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2015-2019
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2016-2019
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2014-2019
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2019-2024
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2019-2024
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2019-2024
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2019-2024

Gum

HEADLINES

PROSPECTS

Gum loses out due to functional alternatives and younger consumers’ diverse spending
Gum loses out as consumers shift towards mints for breath-freshening purposes
Bubble gum pops due to parental concerns regarding oral health, with shift to chocolate alternatives

COMPETITIVE LANDSCAPE

Trident maintains dominance, appeals to consumers with new flavours and pack formats
Ice Cubes and Mentos aim to compete with specific retailing strategies
Larger packaging formats still purchased for use in party bags and piñatas

CATEGORY DATA

Table 13 Sales of Gum by Category: Volume 2014-2019
Table 14 Sales of Gum by Category: Value 2014-2019
Table 15 Sales of Gum by Category: % Volume Growth 2014-2019
Table 16 Sales of Gum by Category: % Value Growth 2014-2019
Table 17 NBO Company Shares of Gum: % Value 2015-2019
Table 18 LBN Brand Shares of Gum: % Value 2016-2019
Table 19 Distribution of Gum by Format: % Value 2014-2019
Table 20 Forecast Sales of Gum by Category: Volume 2019-2024
Table 21 Forecast Sales of Gum by Category: Value 2019-2024
Table 22 Forecast Sales of Gum by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Gum by Category: % Value Growth 2019-2024

Sugar Confectionery

HEADLINES

PROSPECTS

Modern grocery retailers compete on price but independent small grocers important for impulse purchases
Health concerns impact traditional products, while benefiting mints
Functional, natural and nostalgic options appeal to adults

COMPETITIVE LANDSCAPE

Dos Pinos develops nostalgic Gallito but faces competition in modern and traditional grocery retailers
Sugar-free products benefit from health trend and Walmart’s Great Value launch
Adult consumers show growing interest in products with functional properties

CATEGORY DATA

Table 24 Sales of Sugar Confectionery by Category: Volume 2014-2019
Table 25 Sales of Sugar Confectionery by Category: Value 2014-2019
Table 26 Sales of Sugar Confectionery by Category: % Volume Growth 2014-2019
Table 27 Sales of Sugar Confectionery by Category: % Value Growth 2014-2019
Table 28 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value 2014-2019
Table 29 NBO Company Shares of Sugar Confectionery: % Value 2015-2019
Table 30 LBN Brand Shares of Sugar Confectionery: % Value 2016-2019
Table 31 Distribution of Sugar Confectionery by Format: % Value 2014-2019
Table 32 Forecast Sales of Sugar Confectionery by Category: Volume 2019-2024
Table 33 Forecast Sales of Sugar Confectionery by Category: Value 2019-2024
Table 34 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2019-2024

Packaged Food in Costa Rica - Industry Overview

EXECUTIVE SUMMARY

Increasing segmentation and new value-added products
Functional ingredients and new value-for-money products set the pace
New added-value products and Wal-Mart’s Great Value range gain presence
Modern grocery retailers keep gaining ground
Convenient, affordable and healthier options to help drive growth

FOODSERVICE

Sales to Foodservice
Further consolidation based on additional economy-of-scale savings
Mayca expanding its new self-service model
Technological innovations and new distribution centres set to further consolidate foodservice sales

CATEGORY DATA

Table 36 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 37 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 38 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 39 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 40 Sales of Packaged Food by Category: Volume 2014-2019
Table 41 Sales of Packaged Food by Category: Value 2014-2019
Table 42 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 43 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 44 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 45 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 46 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 47 Penetration of Private Label by Category: % Value 2014-2019
Table 48 Distribution of Packaged Food by Format: % Value 2014-2019
Table 49 Distribution of Packaged Food by Format and Category: % Value 2019
Table 50 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 51 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 52 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 53 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

DEFINITIONS

SOURCES

Summary 1 Research Sources