A new report by the independent business analyst has revealed that although the US will remain the largest global market for confectionery, there will be significant opportunities in emerging markets in Eastern Europe, Asia and South America.
Katie Thomas, senior analyst at Business Insights, says: “Although we’re expecting growth in confectionery in most instances, the underlying factors are very different depending on the market. For example, demand for confectionery in the mature markets will come from market-driven developments such as consumer demand for ethical and functional products. In emerging markets, on the other hand, one of the main reasons for the rise in demand is that socio-demographic shifts are leading to a rise in consumers’ disposable income.”
Business Insights predicts that chocolate will remain the largest sector, followed by sugar confectionery. However, the third largest sector, gum, will be the fastest growing category over the next few years.
The report reveals that while much of the growth will be fuelled by demand for indulgence, consumers are starting to view such purchases in a different way, and will expect added benefits or unique points of difference to justify spend on indulgent, discretionary products.
Thomas continues: “Demand for chocolate and sugar confectionery remains high 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.”
This growing focus on weight management is also one of the factors behind the growth of the gum sector. Sugar free gum alone will grow by 6.1% during 2010-14 to reach $12.7bn in 2014. Functional gum will also help to drive growth.
Innovations in gum bases, which help in maintaining the integrity of sensitive ingredients, have allowed the development and launch of an increasing number of products. In fact, the functional gum sector will grow by 5.5% to reach $3bn by 2014.
Source: Business Insights
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