Executive Summary

Aug 2018
Prospects
Chocolate confectionery benefits from trend towards added-value offerings

The further growth of chocolate confectionery in 2018 was supported by a strong economic environment and hence rising consumer confidence and demand for added-value products. Such value-added products included those with a health and wellness positioning, for example with healthier but more expensive ingredients such as cocoa rather than cheap sugar, as well as a focus on sustainability, for instance offerings featuring organically grown ingredients or fairtrade properties.

Trend towards premium products expected to continue

This growing share of products with health and wellness-related properties is also connected to another very important trend, which is the one towards premium products. Thereby, the category has been able to benefit from the strong indulgence trend, which is being supported both on the supply and demand side.

Rising commodity prices predicted by most experts over the forecast period

Average unit price in chocolate confectionery is expected to rise further over the forecast period, with this being not only the result of growing demand for added-value offerings but also the increasing price of commodities, including cocoa. The reason for this is rising global demand in combination with fluctuating harvests.

Competitive Landscape
Category leader Ferrero maintains its value share at the end of the review period

Ferrero Deutschland remained the leading player in chocolate confectionery in Germany in 2018, commanding nearly double the share of its two nearest rivals, Lindt & Sprüngli and Mondelez. Ferrero is expected to continue with its rather conservative approach, which means that changes to well-known and well-liked brands, for example Kinder, tend to be limited.

Lindt gains share while Mondelez loses ground

Second-ranked Chocoladefabriken Lindt & Sprüngli grew its share slightly in 2018. As a premium player, the company has been able to benefit from the premiumisation trend, although it has also focused on seasonal products, for example around Easter and Christmas time, through a growing range of different advent calendars, during which time there tends to be a drop in the price-consciousness of the average German consumer.

Local player Ludwig Schokolade very active in terms of new product development

The example of Ludwig Schokolade, with its flagship brand Trumpf, shows that despite the fact that the leading players in the category are all multinationals, success is also possible for a domestic player. Towards the end of the review period the company was very active in terms of new product development, for example launching Trumpf Edle Tropfen In Nuss in two special editions (one with a CD featuring a crime thriller radio play and the other with vodka-based specialities in the context of the Football World Cup), as well as three tablets with Batida de Coco.

Prospects
Very few growth opportunities for gum in Germany

Gum remained a very mature and saturated category in Germany in 2018 with very few growth opportunities, resulting in both a value and volume decline and a fairly bleak outlook over the forecast period. Apart from new flavours, which are not regarded by many consumers as genuine innovations and so are often not able to boost sales to any notable degree, manufacturers do not have too many opportunities in the category to drive a meaningful increase in sales.

Significant growth only expected in fairly small niches

Growth in gum can typically only be achieved in niches, for example with products which are in line with current trends, especially the ongoing health and wellness trend. Gum will be able to benefit mostly from products aimed at oral health and dental care, for example by offering additional benefits such as teeth whitening.

Trend towards sugar-free products expected to continue over the forecast period

As far as the different gum categories in Germany are concerned, the best performance, or rather the weakest decline, over the forecast period is expected from sugar-free chewing gum, which at least does not have a negative image with regard to widespread problems such as tooth decay and diabetes. For bubble gum and sugarised chewing gum, the future is rather bleak, with a further significant decline in value and volume terms looking inevitable.

Competitive Landscape
Wrigley continues to dominate sales

Wrigley continued to dominate gum in Germany in 2018, accounting for more than three quarters of overall value sales. At the end of the review period the company was able to further strengthen its position, with a similar development also expected over the forecast period.

Private label not yet a real threat to Wrigley

In Germany, and quite unusually when compared to most other categories in packaged food, private label is not, at least not yet, a real threat to Wrigley. On the one hand, Wrigley profits from very strong awareness and likeability among German consumers, while on the other its products are not so expensive as to encourage the average consumer to seek out cheaper alternatives.

Success of start-ups like Das Kaugummi is not very likely

The end of the review period saw the emergence of small start-ups like Das Kaugummi, which provides chewing gum in very simple packaging but also offers innovative new flavours. However, the long-term success of the company is unlikely, according to industry experts.

Prospects
Mature and saturated sugar confectionery difficult to revitalise

Sugar confectionery in Germany continued to be challenged by many different factors in 2018, thus posting a further decline in both retail current value and volume terms. The category also faces a bleak outlook over the forecast period.

Major players continue to try and defend their share of sales

Despite these less than favourable circumstances, all major players present in the category will continue to support their products and brands via various activities in order to at least defend their share of sales or even improve their position in the competitive environment. Such activities will include the launch of innovative new products as well as promotional support, often at or close to the point of sale.

Diminishing returns put pressure on prices

The category’s decline will continue to put pressure on unit prices as another method to gain share, at least in volume terms, is the use of price promotions, which are quite frequently used in sugar confectionery in Germany. Even in the case of higher commodity prices or rising production costs, all manufacturers tend to be very apprehensive about increasing their prices to compensate for these negative developments as they do not want to run the risk of losing share to their competitors.

Competitive Landscape
Haribo remains the leading player but challenges lie ahead

At the end of the review period, Haribo, the leading player in sugar confectionery in Germany, had to deal with increasing competition and a declining share of overall value sales, partly due to being late to react to the trend towards vegan products. Over the forecast period the company will have to try and win back lost share from its competitors.

Katjes continues to steadily grow its value share

Third-ranked Katjes Fassin continued to steadily grow its value share in sugar confectionery at the end of the review period. Compared to Haribo, the company has the advantage that its sales are growing from a lower base and therefore it is easier to achieve growth, especially in areas where thus far fewer products are present.

Limited importance of private label expected to continue

Compared to other categories in packaged food, private label is expected to continue to account for a rather small share of sales in sugar confectionery in Germany. Over the review period the combined share of private label in retail value terms was only the same as that of Haribo, with most experts agreeing that no significant change to this will be seen over 2018-2023.

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 Germany

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 Germany 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 Germany, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Germany 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 Germany?
  • What are the major brands in Germany?
  • 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 Germany - Industry Overview

EXECUTIVE SUMMARY

Packaged food continues to perform well in 2018
Higher consumer confidence promotes interest in added-value products
Strong competition, with a wide range of different players
Modern grocery retailers continue to dominate distribution
Further low annual growth expected

FOODSERVICE

Sales to Foodservice
Sales to foodservice expected to continue rising
Performance varies significantly by area
Growing number of large players with own foodservice departments
Consumer Foodservice
Continued consumer foodservice growth
Strong competition, with independent operators standing ground against chained players
Positive outlook but fears of eventual rise in price sensitivity
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