butter add taste and texture to a wide variety
of decadent candy and snacks introduced
this year. Indulgent categories like premium
chocolates, chocolate-covered salty snacks,
bakery snacks, and dried meats and fruits
have been on the rise for a few years, fueled
in large part by the innovation snack makers
have applied to new product launches.
Candy makers are finding inspiration
at the dessert menu, from strawberry
cheesecake, banana creme pie, whoopie
pie, birthday cake, s’mores and decadent
chocolate spreads. Innovation also includes
beer-themed chocolate and chewy candies to
cherry cola, macchiato and crème de menthe
Q. What is the size and growth
opportunity of the confectionery market?
A. Candy is big, growing and has
potential to be a profit driver. In the U.S.,
sales reached more than $33.5 billion as
of 2013, with chocolate being the largest
contributor at some $20.6 billion — or
more than 61 percent of the total market —
non-chocolate at $10.3 billion and gum at
Confections are the third-largest catego-
ry in grocery and an important contributor
to store profits. Confectionery sales and
growth continues to outpace that of all other
categories in the center store. In the last six
months, total candy sales in the U.S. have
grown by 1.5 percent. Over the past year,
we have seen 2. 3 percent growth. Chocolate
is the leader among all segments with 3. 9
percent growth in the past year.
Q. How is confectionery performing
in the global market?
A. The international confectionery
market grew by an annual rate of 2 percent
in real terms over the previous five years.
However, there is more to consider to gain
the complete perspective. With per capita
consumption in Europe and North America
declining, it is important to look at the
country and market level to understand the
largest and fastest growing countries and
product categories, and identify the key
trends that offer manufacturers opportunities, as well as those that threaten growth.
Chocolate saw the fastest growth between
2009 and 2014, with a CAGR of 2 percent. Consequently, it also accounted for
the majority of absolute growth over the
review period, with global sales increasing
by nearly US $11 billion. Non-chocolate
confectionery grew at a slower pace, with a
CAGR of just 1 percent. While Asia Pacific
and the Middle East and Africa performed
well, sales in Western Europe declined by
over US $800 million, pulling down the
overall growth rate. Sales of gum fell sharply in Western Europe and North America,
with the category seeing almost no growth
Sugar-free gum did see relatively strong
growth over the review period, but could not
offset the move away from sugarized gum
and bubble gum. The only regions where
both bubble gum and sugarized gum posted positive growth were Asia Pacific and
Middle East and Africa. All other regions
saw declines. Euromonitor points to a disenchanted younger generation and rising dental health concerns. The latter would argue
for increased focus on functional gum benefits. In the five years to 2014, retail value
sales grew by more than US $6.3 billion
in Asia Pacific, the highest of any region,
although Western Europe still remains
the largest confectionery market globally,
despite seeing a decline over this period.
Rising per capita consumption growth in
Asia Pacific meant that in 2013 the region
overtook North America to become the second largest confectionery market globally.
Confectionery sales in the Middle East and
Africa represent only 5 percent of the global
total, but the region accounted for nearly 10
percent of the world’s absolute growth over
2009-2014, posting a CAGR of 5 percemt.
Q. How has the increased focus on
labeling affected candy/confections?
A. Providing accurate and truthful
information to consumers is a priority for
all candy makers. Confectionery packages
carry all required information with many
companies providing additional information online. Additionally, manufacturers
of over 80 percent of the candy on retail
shelves have voluntarily committed to adopt
front-of-package labeling. The industry will
continue to follow developments regarding
claims, genetically engineered ingredient
labeling and more.
Q. Are consumers concerned about
candy's role in the diet?
A. Most consumers already consume candy as a treat, eating no more
than 50 calories a day from candy, which
means they understand that candy is fun,
to be enjoyed as a little something special. America’s confectioners have been
making and selling candy for hundreds of
years. Throughout the years candy makers have always sold a variety of candies,
from chocolate to taffy to sugar-free and
more. Not only is there a great variety of
products that a consumer can choose from
based on what is most important to them,
there are also a number of sizes available.
Additionally, manufacturers of over 80
percent of the candy on retail shelves have
voluntarily committed to adopt front-of-package labeling. (The) industry is also
committed to responsible marketing to
children with over 95 percent of confections not being advertised on children’s
Confections are the
third-largest category in
grocery and an important
contributor to store profits.
Confectionery sales and
growth continues to out-
pace that of all other cate-
gories in the center store.