In 2021, sugar confectionery is expected to return to growth after seeing a year of significant retail volume and current value decline in 2020. COVID-19 has led some consumers to cut back on purchases of non-essential products due to the financial impact of the pandemic, and they are prioritising their discretionary spending.
All sugar confectionery categories that saw current value decline in 2020 are expected to return to growth in 2021, although not all will return to the 2019 level of sales, such as boiled sweets. Although this category is set to see the fastest current value growth in 2021, this is because it saw the strongest decline in 2020.
Despite seeing a minor share decline, Grupo Bimbo is set to maintain the leading value share in sugar confectionery in 2021, with a broad portfolio that spans multiple categories and boasts well-established brands such as Ricolino, Dulces Vero and Coronado. Ricolino, which is focused on pastilles, gums, jellies and chews, but also competes in other sugar confectionery, is by far the company’s largest brand in this category.
In the forecast period sugar confectionery is expected to see slow but stable retail volume growth rates, along with higher retail current value growth rates, as prices continue to rise. This performance is similar to that seen before the pandemic struck.
It should be noted, however, that the new labelling requirements which came into effect in Mexico from October 2020 may have a dampening effect on demand for some sugar confectionery categories noted for their higher sugar content, as consumers continue to become more health-conscious. The new labelling, which is intended to combat the prevalence of diseases such as diabetes, obesity and cardiovascular diseases, requires the display of hexagonal black seals on the front of the packaging for products containing high levels of sugar and calories, amongst others.
Whilst sugar confectionery is quite fragmented, with local and multinational producers of all sizes vying for position across several categories, the formation of Mars Wrigley Confectionery in 2019 could result in greater consolidation in the forecast period. This company brings all of Mars Inc’s confectionery businesses – including Wrigley, Effem, Turín and Lucas – together in a single entity.
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Understand the latest market trends and future growth opportunities for the Sugar Confectionery industry in Mexico with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Sugar Confectionery research and analysis database.
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