While sugar confectionery is predicted to see improving demand over 2021, following significant declines in 2020, this is unlikely to occur until later in the year due to ongoing restrictions of movement as Peru continues to struggle with rising cases of COVID-19. Sugar confectionery faced considerable problems following the emergence of the pandemic in terms of distribution, with the sale and marketing of non-essential products prohibited between March and May 2020.
Like gum, demand for medicated confectionery and mints was significantly impacted by reduced impulse purchasing occasions, and reduced need to freshen one’s breath when in a social situation including after smoking, consuming alcoholic drinks, or simply when consumers are away from the home for prolonged periods of time without being able to brush their teeth. Due to the impact of home seclusion and availability of traditional oral care, consumption occasions notably decreased in 2020.
The pandemic has resulted in Peruvians finding comfort in traditionally well-known brands, due to greater familiarity and the desire to consume sugar confectionery that reminds them of "better times" when they were able to enjoy time with families in a social setting. There is also greater trust placed in packaged sugar confectionery by renowned brands, which they associate with superior safety and hygiene measures.
With subdued demand as a result of the pandemic, large price promotions are expected to continue into 2021 by retailers and players, desperate to move product. This is resulting in another decline in the average unit price of sugar confectionery as manufacturers attempt to recover to 2019’s volume sales levels.
Innovation by players is expected over the forecast period to create greater excitement in a struggling category. One possibility for greater growth potential is to address health and wellness trends by using real fruit juice and other natural ingredients such as brown sugar, or those local to the country.
Healthy and wellness trends were not a major concern during the pandemic because consumers had other priorities, focusing on comfort and indulgence to a certain extent during an anxious period. However, this trend is likely to experience a stronger return nearer to 2023, limiting sugar confectionery’s potential for a more rapid recovery.
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Understand the latest market trends and future growth opportunities for the Sugar Confectionery industry in Peru 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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