Executive Summary

Jul 2018
Prospects
Products from specific regions or countries expected to see growth in premium price segment

Origin chocolate is expected to gain popularity over the forecast period as regional chocolate specifications and rising consumer education and marketing will drive sales. While brands labelled as, for example, Belgian chocolate were already present and gained popularity in 2018, products from more exotic destinations (such as Latin America) are set to witness growing demand.

Rising premiumisation trend to lead to further innovation in the higher-end price segment

Fairtrade and organic chocolate products are set to gain popularity in Slovakia as consumers continue to opt for better quality products or premium features. High cocoa content, premium design and packaging are going to remain highly popular thanks to strengthening household purchasing power and rising willingness to spend on quality snacking.

Cross-category competition shall further limit sales

Growing competition from processed fruit snacks, ice cream and savoury snacks significantly hampered growth in chocolate confectionery in 2018. Looking further into the future, nuts and dried fruit coated in chocolate will grow in popularity following the healthier snacking trend and optimal snack sizes.

Competitive Landscape
Price discounts to become less important

Rising average prices within chocolate confectionery in 2017 and 2018 highlighted a rising premiumisation trend in Slovakia. As consumers increasingly opt for quality over value, fewer or less intensive/significant price promotions are expected over the forecast period.

Designer brand stands and point-of-sale materials improve visibility

As impulse shopping is an important factor in purchases of chocolate confectionery (as well as snacks in general), players in the category are expected to focus increasingly on getting the consumer to notice a brand. Due to the overuse of price promotions and discounts the term “discounted” commands less consumer interest as in such a case there are always multiple brands to choose from during a price promotion.

Private label to continue to gain share

High quality private label chocolate confectionery products gained popularity in 2018 thanks to combining taste with quality product features such as coca content – for example, Lidl’s tablet chocolate with high cocoa content (its Ecuador label), Kaufland’s Exquisite brand chocolate assortment and Tesco’s Finest. Private label products are expected to be major innovators in terms of chocolate confectionery, which will positively impact their overall share over the forecast period.

Prospects
Added-value benefits increasingly desirable

Consumers want added value from their sugar-free gum brands, demanding for example a whitening effect or extra dental protection. This plays in favour of products such as Orbit White or Orbit Professional, which are positively viewed for their additional beneficial properties.

Flavour combinations expected to be utilised more

Mixing gum flavours (such as menthol, eucalyptus or mint) is expected to create consumer interest and revitalise product innovation in sugar-free gum over the forecast period. Products which offer more daring flavours, for instance mixing traditional ones with herbs may become tested by niche players over the forecast period.

Sugar-free gum dominates sales in 2018

Sugar-free gum enjoyed massive popularity thanks to the trend of dental health and strong marketing support. In particular, Wrigley’s brands were popular and benefited from significant marketing support.

Competitive Landscape
New products to challenge Wrigley’s superiority

New product launches and new entrants are expected to increasingly challenge Wrigley’s position. Aggressive marketing support for brands such as Mentos Gum (from Perfetti Van Melle Slovakia) and Tic Tac Gum (Ferrero Ceska) helped to reduce Wrigley’s retail value share in 2018.

Small gum players become more active

Smaller players started to emerge in 2017 and 2018 – for example, Arctic Swiss chewing gum (by Arctic sro), which is free from sugar and aspartame (an artificial sweetening agent), made a visible debut in convenience stores and supermarkets in 2017. Aspartame was replaced by a higher content of xylitol, which is considered to be more helpful in killing bacteria.

Retailers’ brands under pressure

Private label products gained ground marginally in 2018 thanks to a slowly expanding product assortment in retail stores. However, growing competition from large multinational players is set to limit growth in sales of private label products and negatively impact retail value share.

Prospects
Premiumisation a major future growth driver

Average unit price growth was responsible for approximately half of the category’s growth in 2018, which was the result of slightly less significant price promotions and a rising premiumisation trend in Slovakia. This was visible across all sugar confectionery categories, despite the liberalisation of the sugar market in Europe (as production quotas on sugar were lifted in October 2017), which resulted in significantly declining sugar commodity prices in early 2018.

High obesity levels may trigger government response in the future

Slovakia faced rising obesity levels across all age groups in 2018 – with 21% of the adult population classified as obese (BMI 30kg per sq m or more). In addition, an overweight population of 1.

Taste and product quality perception shall remain highly important

Sugar confectionery sales in 2018 were positively affected by pastilles, gums, jellies and chews, which was the one of the best performers. Within the category, Haribo GmbH & Co KG recorded significant growth in terms of both sales and retail value share in 2018, thanks to a developing premiumisation trend in Slovakia and brand advertising.

Competitive Landscape
Retail value share shifts in favour of private label products

Private label sales in 2018 strengthened slightly in terms of retail value share when compared to 2017. This development was supported by significant advertising by main retail players and brands, such as Kaufland Slovenská Republika vos and Lidl Slovenská Republika vos.

Growing consumer demand creates incentive for manufacturers to expand production

In 2018 IDC Holding, the largest domestically-owned snacks manufacturer in Slovakia, was in the process of expanding its production capacities, with plans to move its confectionery production from its Figaro plant to the town of Cifer. By expanding production of sugar confectionery and seasonal chocolate products the company plans to challenge the larger confectionery players and increase its retail value share.

Lower-sugar alternatives attract greater consumer interest

The healthier living trend is expected to encourage manufacturers to introduce lower-sugar variations of their brands. For example, in 2018 JoJo (Nestlé Slovensko) introduced JoJo Gummybears with 30% less sugar, as an alternative for healthy-minded consumers.

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Overview

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

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

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  • 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 Slovakia - Industry Overview

EXECUTIVE SUMMARY

Growing demand for better product quality and fresh and regional ingredients
Packaged food performs well
EU to continue fighting against inferior product quality
Investments in internet retailing and a pleasant shopping experience in brick and mortar stores
Packaged food continues to be shaped by premiumisation and health trends

FOODSERVICE

Sales to Foodservice
Foodservice volume outpaces retail volume growth in 2018
Sales to foodservice growth fails to accelerate in 2018
Sales to foodservice will likely witness increasing attention from manufacturers
Consumer Foodservice
Foodservice operators benefit from the developing convenience trend in Slovakia
Innovation, premiumisation and convenience to drive future consumer foodservice sales
New legislation to better tackle tax evasion within foodservice establishments

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

DEFINITIONS

SOURCES

Summary 1 Research Sources