Confectionery in Uruguay

Prospects

Volume sales decline slightly in the review period because of climatic conditions

Retail volume sales fell marginally in the review period in Uruguay. The slight increase in value sales in 2018 was mainly due to inflation in the country.

Tablets remains the most popular option for Uruguayan consumers

In 2018, tablets remained the biggest category in volume sales in Uruguay. The category is still the most popular choice for Uruguayan consumers, independent of their income level.

Competitive Landscape

International companies lead Uruguayan chocolate confectionery

International player Sebamar remained in the leading position in the whole of the review period. Its main sales come from sales of Garoto products.

Domestic players struggle to compete with foreign firms

Edanrey SA and Henderson & Cía SA (Tienda Inglesa) are the only two local companies with a significant share in chocolate confectionery in Uruguay. Both companies sell domestic manufactured chocolate products; however, even combined they do not present a threat to the big international companies in the country.

Prospects

Changes in consumer preferences favour chewing gum

Historically in Uruguay, consumers tended to prefer bubble gum to chewing gum, with there being attractive options, especially for younger consumers, and a price differential between sugar and sugar-free products. However, that started to change in the review period, and since 2012, chewing gum has become the preferred choice for consumers.

There is a wide variety of flavours among chewing gum products

Producers are constantly launching new flavours to maintain consumer interest in chewing gum, although mint flavour is the most consumed, especially among adults. Innovative and new flavours are consumed and tried out by the younger population in the country.

A slight decline is predicted

It is expected that companies will continue to increase their volume sales of chewing gum, steadily launching new flavours and different formats, to maintain consumer interest. Although new launches will sustain interest among consumers, the overall gum category will not able to avoid a decrease in constant value sales, and producers will have to make big efforts to reverse the situation.

Competitive Landscape

International companies lead the Uruguayan gum category

CAS Uruguay SA is the leading company in Uruguay, thanks especially to sales of Beldent chewing gum products. The brand is very common and can be found in almost every store in the country.

Domestic players struggle to compete

Local companies are not present in the Uruguayan gum category. International gum companies are constantly launching and advertising their products, and for domestic players it is difficult to do likewise as they have less capital to invest than multinationals, which are well established in the category and have many local customers.

The entrance of Mentos may break the dominance of the leaders

In 2017-2018, Sebamar SA launched its Mentos chewing gum products, which, although still having low sales, could generate competition. Mentos has ventured into the category with fierce advertising, and, to be competitive, Sebamar has launched products with different flavours and in different formats.

Prospects

A decrease in volume sales is driven by demand for sugarless products

Consumers looking for products with sugar-free content are having a negative impact on sales of sugar confectionery. Consumers are searching for sugar-free confectionery, which continues to be difficult to find in different formats in Uruguay.

Sugar confectionery products mainly target the younger population

Sugar confectionery products mainly target the young population, especially children. Pastilles, gums, jellies and chews, and toffees, caramels and nougat are the biggest categories in value and volume sales in Uruguay.

Competitive Landscape

Van Dam SA remains the clear leader

In 2018, Van Dam SA continued leading total sales of sugar confectionery in Uruguay. The company offers a wide portfolio of products within the different sugar confectionery categories.

Local companies face difficulties in competing against internationals

Local manufacturers are facing increases in labour and production costs, making it more difficult to compete against internationals. Despite this, there are local players among the leaders in sugar confectionery, such as Penino y Corona and Mafinor SA.

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