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According to TNS, a market research company, dark chocolate appeals largely to an adult audience. Moreover, the ageing population trend in Latvia is putting pressure on producers to cater to an older consumer base.
Chocolate-covered fruit and fruit-covered chocolate provide growth opportunities
A new product category emerged in 2018, consisting of chocolate-covered fruits and berries and their combinations. This innovation is driven by chocolate manufacturers, but also niche fruit and healthy snack producers, in order to compete with and differentiate their products from increasingly popular health-orientated snacks and snack bars.
Laima remains the leading player
Due to heightened national sentiment associated with Latvia’s centenary, Latvian brands or brands that originated in Latvia and have a long history in the country received additional attention. For example, Laima actively participated in the promotion of the Latvian Song Festival by donating two tonnes of chocolate bars.
Gradual concentration of the competitive landscape
Despite the presence of numerous brands in chocolate confectionery, there has been a gradual concentration of the competitive landscape towards the end of the review period. The top two brands, Laima and Milka, have taken advantage of considerable economies of scale to consolidate their positions and increase the entry barriers for potential new players.
Investment in technology pays dividends
One of the key new product launches of 2018 was Ruby Kit Kat pink chocolate bar. In launching the new product with the support of local social media influencers, it received quick recognition and enjoyed fast popularity from a younger audience.
Declining growth prospects due to healthier habits
One of the largest groups of consumers of chewing gum is smokers. Thus, the declining smoking population in the country is negatively impacting sales, as there is less demand for a post-cigarette breath freshener.
Lack of innovation threatens the outlook for gum
Due to the shifts in consumption habits, the conventional positioning of chewing gum may prove insufficient and threaten sales. In order to overcome this threat, producers are being pressured to come up with innovative positioning and products to retain consumers who may be interested in switching to substitutes like peppermint lollipops.
Lifestyle shifts provide opportunities for product positioning
Due to increasingly hectic lifestyles, consumers are increasingly opting for products that can be consumed on the go. Conventional chewing gum fits with this demand trend as it allows consumers to snack in a relatively fast and healthier way, if the product is advertised as sugar-free.
Bubble gum faces competition from sugar confectionery
While the direct competition to chewing gum from other types of snacks is limited, bubble gum is under increasingly strong competition from pastilles, gums, jellies and chews. Large confectionery producers like Laima invest in low sugar, natural juice-based jellies.
Concentrated competitive landscape
The competitive landscape of gum is concentrated in Latvia. Wrigley Scandinavia continued to dominate retail value share in 2018, benefiting from its wider brand offer (Orbit and Hubba Bubba), established presence and recognisable name in the market.
Sugar confectionery poses a growing threat to gum players
Innovation is mostly coming from brands present in sugar confectionery, including pastilles, gums, jellies and chews. Sugar confectionery brands like Fini have appealed to a young audience by offering colourful and chewable candies in flexible packaging (flexible plastic bags).
Less sugar for sugar confectionery
Sugar confectionery has been most affected by the shift towards health and dietary concerns in terms of new product launches. Producers have adapted their new product development and marketing to cater to the rise in demand for products with reduced sugar, artificial sweeteners and natural ingredients.
Is there a future for mints?
Mints are beginning to be seen as old-fashioned by younger consumer. Whilst key players have increased their advertising investment through both traditional and social media, mints has struggled to sustain demand.
Larger packaging saves sugar confectionery
Aside from its influence on new product development, the health trend is most visible in sugar confectionery in terms of the toll it takes on impulse purchases, rather than aggregate sales. While boiled sweets and lollipops face ongoing maturity and diminishing popularity, pastilles, gums, chews and jellies and toffees, caramels and nougat are predicted to see further retail volume and value (at constant 2018 prices) growth over the forecast period.
Orkla Group leads sugar confectionery
Orkla Group is the GBO of Laima and Draakon, the first- and third-ranked brands in sugar confectionery. Both brands increased their retail value shares over the review period, including 2018, supported by extensive marketing.
Increasing access to the category
With many brands having reached maturity, sugar confectionery is increasingly accessible for smaller producers looking to compete through novel products and technologies. While established brands like Laima, Haribo and Red Band benefit from large economies of scale, interest can wane as consumers are willing to try new brands.
International brands pose a threat to domestic players
In line with the growing power of social media, more and more children base their demands and cravings upon the products they see online. As seen with the introduction of Jelly Beans and Oreo in Latvia, internationally recognised mega brands are becoming increasingly popular among tech-savvy children.
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Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Latvia with research from Euromonitor's team of in-country analysts.
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If you're in the Confectionery industry in Latvia, our research will save you time and money while empowering you to make informed, profitable decisions.
The Confectionery in Latvia 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 Latvia?
What are the major brands in Latvia?
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?
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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
Local companies play prominent role in fragmented market
Rimi Latvia driving hypermarkets expansion
Constraints on growth in forecast period
Sales to Foodservice
Convenience a key driver Lines between foodservice and retail blurring Healthy positioning boosting sales in growth caetgories
Busy lifestyles driving fast food growth More cosmopolitan tastes reflected in full-service restaurant diversification Growing interest in vegan diets in Riga
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
Table 5 Sales of Packaged Food by Category: Volume 2013-2018 Table 6 Sales of Packaged Food by Category: % Volume Growth 2013-2018 Table 7 Sales of Packaged Food by Category: % Value Growth 2013-2018 Table 8 GBO Company Shares of Packaged Food: % Value 2014-2018 Table 9 NBO Company Shares of Packaged Food: % Value 2014-2018 Table 10 LBN Brand Shares of Packaged Food: % Value 2015-2018 Table 11 Penetration of Private Label by Category: % Value 2013-2018 Table 12 Distribution of Packaged Food by Format: % Value 2013-2018 Table 13 Distribution of Packaged Food by Format and Category: % Value 2018 Table 14 Forecast Sales of Packaged Food by Category: Volume 2018-2023 Table 15 Forecast Sales of Packaged Food by Category: Value 2018-2023 Table 16 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023 Table 17 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023
Summary 1 Research Sources
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.