UK confectionery market rose 4.1% in value year-over-year in 2013, according to new report; chocolate remains dominant contributor to total market value
April 16, 2014
– Research and Markets (http://www.researchandmarkets.com/research/pzstnf/confectionery) has announced the addition of the "Confectionery Market Update 2014" report to their offering.
This Market Update examines the confectionery industry in the UK. In 2013, the market continued its pattern of year-on-year growth, rising in value by 4.1% from 2012.
This figure is based on the combined sales of both chocolate and sugar confectionery, which are both analysed individually and in-depth in this Market Update. The former remains the dominant contributor to total market value, based on the popularity and variety of the four subsectors. Of these, single-serve countlines, sold in individual or multipack formats, remain the most valuable subsector in terms of sales. Yet boxed chocolates and sharing bags, as well as blocks and moulded bars, offer a multitude of increasingly popular products. Sugar confectionery, on the other hand, is led by the fruit sweets subsector, which offers a popular alternative to chocolate, particularly among younger demographics. Demand for other sugar confectionery, as well as chewing gum, bubble gum and mints, is less substantial, partially explaining why sugar confectionery as a whole is unable to compete with volume sales of chocolate confectionery in the UK market.
Inflation is continuing to threaten sales and alter buyer behaviour, despite the onset of a gradual economic recovery. High prices, particularly in relation to chocolate, are being driven by increased global demand from rapidly developing countries such as the People's Republic of China (PRC). In contrast, sugar has been in excess supply for years but low global trade prices have forced mass sugar mill closures, contributing to the development of unpredictable supply chains. These respective issues are currently being compounded by the media's attack on sugar consumption, which is worrying UK consumers amid increasing cases of diabetes and claims that sugar is the new tobacco.
Yet the resilience of the confectionery market has largely neutralised these threats with a huge number of new product developments (NPDs) entering the marketplace year-on-year, despite a high level of market saturation. Increasingly adventurous UK consumers are demanding more from their confectionery with unusual, sour, fun, themed and retro products being particularly popular in 2013. Yet NPD is expensive and as such, is predominantly based around the extensive brand recognition and loyalty that exists in this market. This is encouraging expansion into other food markets, blurring the lines between what constitutes confectionery, as huge conglomerates look to expand at the expense of their rivals.
The UK confectionery market is complex and the way in which these short- and long-term trends combine in the coming years will shape the future outlook. This is particularly relevant given the upcoming 2016 deadline set by the Government's Responsibility Deal, which many major manufacturers signed with the aim of improving public health. Key Note therefore forecasts modest market growth of 11.7% between 2014 and 2018.
Key Topics Covered:
Strengths, Weaknesses, Opportunities and Threats
Dunhills (Pontefract) Plc.
Kinnerton (Confectionery) Co Ltd
Magna Specialist Confectioners Ltd.
Mars Chocolate UK Ltd.
Mondelez UK Ltd.
Nestlé UK Ltd.
Swizzels Matlow Ltd.
Tangerine Confectionery Ltd
Wrigley Company Ltd (The)
For more information visit http://www.researchandmarkets.com/research/pzstnf/confectionery
Research and Markets
Laura Wood, Senior Manager.
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Fax (outside U.S.): +353-1-481-1716
Sector: Snacks and Confectionery
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