Gum in Latvia

2021 DEVELOPMENTS

The return of impulse purchases boosts growth for gum across 2021

Gum was hit hard by the outbreak of COVID-19 in 2020, with a value decline of 11% and a volume decline of 13% for the year. With gum often being an impulse purchase, the fact that consumers were spending more time at home, working from home and learning from home while visiting stores less, severely damaged sales.

Mars Wrigley relaunches Juicy Fruit, as Extra/Orbit continues to lead the landscape

The availability of bubble gum has increased in 2021, with Mars Wrigley confectionery relaunching its product Juicy Fruit, a bubble gum options sold as an alternative to its chewing gum ranges. Bubble gum is seen as more of a confectionery product in Latvia, whereas chewing gum is considered to be a hygiene product that aids oral care and bad breath.

Gum benefits from on-the-go consumption and weight loss trends

With lockdown having eased in April 2021, consumers are set to return to work throughout the year, boosting sales of chewing gum. Sugar-free chewing gum meets the requirements of many consumers, allowing them to enjoy what is perceived as a snack product in a relatively cheap, quick and healthy way.

PROSPECTS AND OPPORTUNITIES

A return to on-the-go lifestyles boosts growth; however, competition from sugar confectionery remains a challenge

Following a return to volume and value growth in 2021, chewing gum is expected to show positive growth across the full forecast period, with a value CAGR of 4%. Once restrictions ease, and consumers return to their daily routines, growth will benefit from social gatherings resuming and on-the-go lifestyles returning, boosting impulse purchases.

The growing interest in health and wellness is negative for bubble gum players

With the outbreak of COVID-19 increasing consumers interest in health and wellness, growing health concerns are expected to persist across the forecast period. This is not a favourable situation for bubble gum, which is perceived to be a confectionery product and may be avoided by many due to its sugar content.

The competitive landscape is set to remain concentrated over the forecast period

The competitive landscape of gum is concentrated in Latvia. While the rankings of the leading players are unlikely to be challenged in the foreseeable future, their shares may be eroded by smaller companies offering innovative new products.