As an affordable treat, certainly in comparison to chocolate confectionery for instance, sugar confectionery experienced a much lower overall decline in demand during 2020, particularly as children remained at home for large periods of time due to school closures as a result of restrictions introduced by the government in an effort to control the spread of the virus. The lower volume declines therefore, stand sugar confectionery in good stead to fully recover to pre-pandemic levels by the end of 2021, supported by the larger categories of other sugar confectionery (which continued to grow during 2020) and pastilles, gums, jellies and chews, with the latter especially targeting younger generations.
The pandemic and subsequent lockdown had resulted in a shift in terms of distribution, with consumers moving away from larger modern grocery retailers such as supermarkets and hypermarkets in addition to forecourt retailers, with the latter suffering from reduced on-the-go consumption and impulse occasions, in favour of local neighbourhood stores in closer proximity to their homes. This resulted in notable share gain for traditional grocery retailers in 2020, which tend to offer a selection of economy products packaged in a single plastic pouch; these types of sugar confectionery products were particularly popular with lower-income consumers struggling due to decreasing disposable incomes.
Sugar confectionery is likely to remain a fairly consolidated competitive landscape in 2021, with smaller players under “others” relinquishing further value share to more established names. Mondelez International (Thailand) Co Ltd is predicted to strengthen its overall leadership in 2021, benefiting from increasing demand for medicated confectionery which it dominates through brand Halls and its extension Halls XS.
Sugar confectionery in Thailand offers further growth potential as demand continues to improve over the forecast period. The health and wellness trend which has been strengthened as a result of the pandemic, will continue to create opportunities for companies to better position their “healthy” product lines as local consumers increasingly switch towards sugar free variants as they become more educated about the dangers of excessive sugar intake, unlike other snack categories that aim to reduce fat or calories.
Medicated confectionery and other sugar confectionery are predicted to record the strongest retail volume growth rates over the forecast period, with the former particularly impressive over the first half due to lingering health awareness. However, the largest volume category of other sugar confectionery offers the greatest development potential in terms of targeting lower-income consumers due to its greater affordability.
While holding negligible share within overall sugar confectionery, foodservice utilises two areas of the category; pastilles, gums, jellies and chews, and other sugar confectionery, which are often used in conjunction with desserts such as an Ice cream Sundae or special drinks with elaborate decoration. Both therefore suffered from an unstable economy and countermeasures in terms of foodservice operations introduced by the government as a result of the pandemic.
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Understand the latest market trends and future growth opportunities for the Sugar Confectionery industry in Thailand 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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