African consumers trading up in sugar confectionery

By Oliver Nieburg contact

- Last updated on GMT

Sugar confectionery in Africa: Value sales growth rates slowing, but CAGR forecasts still above global average. Photo: iStock
Sugar confectionery in Africa: Value sales growth rates slowing, but CAGR forecasts still above global average. Photo: iStock
Sugar confectionery value sales in Africa are projected to grow as consumers trade up for medicated sweets and soft gummies.

African sugar confectionery value sales were estimated at $9bn in 2016 and are forecast for a compound annual growth rate (CAGR) of +4.3% up to 2021.

From boiled sweets to premium candy

Steve Rice, managing director of FoodTrending, told this site: “Some of this will be accounted for by a continued expected increase in medicated sweets, plus a shift from cheaper boiled sugar confections to softer gums, pastilles and caramels.

“Most sales are dominated by boiled sugar sweets although it has been reported that the medicated sweets market, although small, has been growing faster than the market average,” ​he said.

The African market is set to grow fastest than the global sugar confectionery market, which FoodTrending predicts will register a 1.7% CAGR from 2016 to 2021.

Africa sugar confectionery CAGRs

South Africa’s $1.4bn sugar confectionery market is forecast to rise higher than the Africa average at a +4.5% CAGR up to 2021, while sales in Nigeria are poised to climb +5.2% per year and by +4.3% in Kenya.

Sugar confectionery is more affordable and consequently the top confectionery category by value sales in Africa, ahead of chocolate, biscuits and gum.

Local brands expected to grow market share

“Most desired brands are the usual well-known global brands but this seems to be slowly changing with consumers appearing less discerning regarding locally-made sugar confectionery and gum, which are cheaper,”​ said Rice.

FoodTrending’s managing director expects local players will win market market share.

rice quote

Consumption highest in Kenya

Average annual per capita consumption of sugar confectionery in Africa is at 2 kg, according to FoodTrending.

Kenya has the highest consumption rate at 3.5 kg per capita, while South Africa at 2.3 kg per capita has a lower consumption rate than Nigeria (2.7 kg).

What about gum?

FoodTrending estimates Africa’s gum market posted $2.9bn in 2016 value sales, growing at a CAGR of 6.9% since 2011.

The market is projected to increase value sales further, albeit with a slower CAGR of 3.3% up to 2021.

Rice is also expecting African consumers to trade up in gum as current volumes sales are mainly for  ‘standard’ gum and bubble gum, rather than added value ‘health’ gums.

“The future of gum looks positive at an annual average growth rate of 2.6% in volume and an even better rate of 3.3% per year for value as consumers slowly trade up to more expensive, added value product,”​ he said.

Related topics: Markets, Candy, Emerging Markets