The US was the world’s leading producer of sugar confectionery in 2011/12, followed by China and Germany. But fast growing economies such as Brazil, India and Mexico are quickly catching up.
Perfetti Van Melle grows in Russia
Primary market analyst at Leatherhead Jonathan Thomas told ConfectioneryNews: “Production of sugar confectionery in Russia has increased in the last decade or so, although to a lesser extent than that witnessed within the chocolate sector. However, the reasons are broadly the same, i.e. multinationals establishing manufacturing bases to satisfy local demand, as well as investments into increasing capacity.”
Domestic businesses belonging to United Confectioners lead the Russian confectionery market, but multinationals such as Chupa Chups maker Perfetti Van Melle are thought to have increased production volumes.
EU sugar prices take toll on Germany
“At some point in the next few years, Russia is expected to overtake Germany as Europe’s leading producer,” said Thomas.
Rising sugar prices over the past few years have taken their toll on German candy makers with many recording profit drops. The domestic confectionery association (BDSI) has long-campaigned against sugar production quotas in the EU, which are finally set to end in 2017.
Mexicans loosen belts for sweets
Meanwhile, sugar confectionery production is thriving in Mexico, a country which recently surpassed the US as the world’s fattest nation.
Sugar confectionery is the country’s largest confectionery category in both volume and value. Gum is set to be the fastest growing sector in the Mexican confectionery market, but sugar confectionery is still set for a 9.4% compound annual growth rate between 2012 and 2017, according to market researchers Canadean.
Unorganized India lags in candy production
India is not among the top sugar confectionery producers, but volumes have grown over 40% since 2009.
“The Indian market is slightly unusual compared with the other BRIC countries, in that a large ‘unorganized’ sector exists – this refers to poorly-documented sales of low-priced sweets via information channels such as street vendors," said Thomas.
“However, I expect sugar confectionery production in India to increase, due to growing local demand, low labor costs and further development of the country’s distribution and food retail market."