Continued growth in the global confectionery market will be driven by increased demand for ethical and functional products in mature regions, and a rise in disposable income in emerging markets, according to industry analysts.
The global confectionery market is expected to grow from $153bn in 2010 to reach £171.2bn by 2014, claims the new report by Business Insights
The US will remain the largest global market for confectionery however, there will be significant growth opportunities in emerging markets such as Eastern Europe, Asia, and South America, said the analyst.
“Although we’re expecting growth in confectionery in most instances, the underlying factors are very different depending on the market,” she added.
With a rise in middle classes in the emerging markets, more consumers have disposable income to spend on discretionary categories like confectionery, Katie Thomas, senior analyst at Business Insights told ConfectioneryNews.com.
In developed economies, a key trend at the moment is products that deliver functional benefits for health and well being, said the analyst.
“What’s interesting in developed economies is the way in which consumers are changing the way they engage with indulgent categories like confectionery,” she said.
“For example, the trend towards “concerned consumerism” is driving uptake of confectionery products that are ethically sourced,” said Thomas.
According to the analyst, consumers now expect added benefits or unique aspects to justify spending on indulgent, discretionary confectionery products.
Chocolate still strong
The global chocolate confectionery market is forecast to remain the largest sector, growing at 2.7 per cent CAGR (2010-14), estimated to be worth $88.3bn in 2014.
Sugar confectionery is forecast to grow at 2.9 per cent CAGR (2010-14), estimated to be worth $59.9bn in 2014.
Demand for chocolate and sugar confectionery remains high said Thomas. This is due to a number of factors; from the introduction of low calorie products, to the replacement of conventional sugar, with alternatives such as xylitol and maltitol to address concerns around obesity.
“The increasing attention consumers are paying to weight management has also fuelled an increase in the number of single-serve products,” she said.
Growth for smaller bars
Mintel analyst David Jago previously predicted a growth for smaller chocolate bars due as demand for indulgence confectionery increases and consumers become more concerned about weight and calorie intake.
Thomas agreed with Jago, saying: “Smaller bars offer manufacturers the opportunity to position the product as portion-controlled and calorie controlled.”
“Also, a small portion of something really indulgent caters to consumers who want to limit their consumption of indulgent treats, yet allows manufacturers to charge a premium for the “extra special” or “indulgent” element of the product,” the analyst added.