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Strategy Briefing

Searching for the Sweet Spot: Opportunities for Sugar and Chocolate Confectionery

Sep 2013

US$1,200

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About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

As one of the most widely consumed processed food items in the world, the confectionery market often acts as a wider indicator for the packaged food sector. In this global briefing, Euromonitor International looks at the economic challenges facing the world of confectionery and the opportunities that exist in both developed and emerging markets. The report finishes with a unique look into the differing cost structures of confectionery manufacturers in different parts of the world.

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Overview

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.

Weak European economic environment hampers growth in indulgence

Economic growth will be weakest in Western Europe in 2013, but will keep being strong in Asia Pacific and Latin America, opening the path for more premium chocolate and sugar confectionery offerings.

Sugar confectionery shows resilience to economic woes

Sugar confectionery is the category affected the least by weak economic growth. This is because of its low unit price, which makes it particularly appealing during periods of economic duress.

Chocolate sales see major growth in Latin America

Demand for chocolate was particularly strong in Brazil and Colombia in 2013, with retail volume sales growing by 9% and 6%, respectively.

Growing health trend proves stumbling block for sugar confectionery

Strong economic growth and rising health awareness dampened growth of sugar confectionery in Latin America, with sales rising by a mere 0.3% in retail volume in 2013.

Countlines prove to be ultimate snack beating recession-hit markets

Demand for countlines in developed markets benefited from increased demand for low-price convenient chocolate snacks. France and the US were prime examples of this trend.

Dependency on raw materials

International companies planning to enter the Russian market should factor in the strong reliance of companies on raw materials and the high labour costs.

Adding value proves key to growth in emerging markets

China's steady increase in added value creation reflects the progressive premiumisation in chocolate and sugar confectionery.

Outsourcing expenditure

The high consolidation of US chocolate production is resulting in low intra-industry sales and low outsourcing expenditure.

What this report includes

Top-level strategic analysis of how major consumer trends will influence global markets
Consumer insight
Impact across all relevant consumer markets
Unique graphics and case studies
Key market snapshots
Accompanying presentation to synthesise main findings

Why buy this report

Identify factors driving change now and in the future
Understand motivation
Forward-looking outlook
Briefings and presentation should provoke lively discussion at senior level
Take a step back from micro trends
Get up to date estimates and comment

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Introduction

Scope

Objectives of global briefing

Three pillars, one industry

Key findings

The Economic Challenges Facing Confectionery

No change in global economic growth in 2013

One region, one story….

2013: EU crisis takes its toll on global demand for chocolate

Less money, more sugar confectionery

Socio-demographic factors impacting demand for indulgence

Income drives demand for chocolate confectionery in China

Lower savings ratio suggests willingness to spend more

Ferrero Rocher champions premium chocolate growth

Path to success: Targeting the Chinese urban consumer

Nestlé's growth in Chinese supermarkets

Key takeaways

Key Regional Growth Drivers for Sugar and Chocolate Confectionery

Strongest chocolate performance in Middle East and Africa

Emerging markets lead growth

Significant opportunities in Brazil and China

Major public events save chocolate performance in UK

Boxed assortments, countlines and tablets ride the growth wave

Celebratory events support chocolate sales

Countlines in India go from strength to strength

Countline sales in India growing rapidly

Hiring Indian celebrities pays off

Asian market drives sugar confectionery growth

Sugar confectionery: One region, one story

Significant opportunities in China and Mexico

Mexico benefits from low price positioning of premium brands

Sugar confectionery struggles to breach the 3% growth mark

A success story: Pastilles, gums, jellies and chews in the US

Shrinking consumer base is the US's biggest challenge

Boiled sweets sales expand steadily in Mexico

Sugar-free boiled sweets in Mexico: A niche in waiting

Medicated confectionery in Germany: A declining industry

Sugar-free goes all natural

Key takeaways

Understanding the Cost Structures of China, Russia and the US

High consolidation of B2B sales in China

Bakery and dairy products: The path to chocolate growth

Raw materials account for almost half of costs

Mass-market brands highly exposed to commodity price changes

Profits lag behind value added growth

Chocolate and sugar confectionery are largest B2B transactions

Synergy potential between pastry and chocolate manufacturers

Labour and raw materials costs take the lion's share

Labour costs and exposure to commodities are key challenges

Industry struggles to boost profits

Households are the largest buyers

High concentration of sales allows for integration of supply chain

Low share of raw materials is a reflection of market maturity

Dairy costs will decline on the back of premiumisation

Recession takes its toll on US profit margins

Key takeaways

Report Definitions

Definitions (1)

Definitions (2)

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Megatrends

Strategy Briefing

Searching for the Sweet Spot: Opportunities for Sugar and Chocolate Confectionery

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Weak European economic environment hampers growth in indulgence

Sugar confectionery shows resilience to economic woes

Chocolate sales see major growth in Latin America

Growing health trend proves stumbling block for sugar confectionery

Countlines prove to be ultimate snack beating recession-hit markets

Dependency on raw materials

Adding value proves key to growth in emerging markets

Outsourcing expenditure

What this report includes

Why buy this report

Want to find out more about this report?

Table of Contents

Introduction

Scope

Objectives of global briefing

Three pillars, one industry

Key findings

The Economic Challenges Facing Confectionery

No change in global economic growth in 2013

One region, one story….

2013: EU crisis takes its toll on global demand for chocolate

Less money, more sugar confectionery

Socio-demographic factors impacting demand for indulgence

Income drives demand for chocolate confectionery in China

Lower savings ratio suggests willingness to spend more

Ferrero Rocher champions premium chocolate growth

Path to success: Targeting the Chinese urban consumer

Nestlé's growth in Chinese supermarkets

Key takeaways

Key Regional Growth Drivers for Sugar and Chocolate Confectionery

Strongest chocolate performance in Middle East and Africa

Emerging markets lead growth

Significant opportunities in Brazil and China

Major public events save chocolate performance in UK

Boxed assortments, countlines and tablets ride the growth wave

Celebratory events support chocolate sales

Countlines in India go from strength to strength

Countline sales in India growing rapidly

Hiring Indian celebrities pays off

Asian market drives sugar confectionery growth

Sugar confectionery: One region, one story

Significant opportunities in China and Mexico

Mexico benefits from low price positioning of premium brands

Sugar confectionery struggles to breach the 3% growth mark

A success story: Pastilles, gums, jellies and chews in the US

Shrinking consumer base is the US's biggest challenge

Boiled sweets sales expand steadily in Mexico

Sugar-free boiled sweets in Mexico: A niche in waiting

Medicated confectionery in Germany: A declining industry

Sugar-free goes all natural

Key takeaways

Understanding the Cost Structures of China, Russia and the US

High consolidation of B2B sales in China

Bakery and dairy products: The path to chocolate growth

Raw materials account for almost half of costs

Mass-market brands highly exposed to commodity price changes

Profits lag behind value added growth

Chocolate and sugar confectionery are largest B2B transactions

Synergy potential between pastry and chocolate manufacturers

Labour and raw materials costs take the lion's share

Labour costs and exposure to commodities are key challenges

Industry struggles to boost profits

Households are the largest buyers

High concentration of sales allows for integration of supply chain

Low share of raw materials is a reflection of market maturity

Dairy costs will decline on the back of premiumisation

Recession takes its toll on US profit margins

Key takeaways

Report Definitions

Definitions (1)

Definitions (2)

Why buy this report?