FDBusiness.com

Unlikely drivers in the Swedish confectionery market

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

Unlikely drivers in the Swedish confectionery market

Unlikely drivers in the Swedish confectionery market
May 22
08:32 2013

Chocolate still rules the roost in Sweden, but two improbable sub-segments are set to help the sugar confectionery category grow faster in the next five years, according to market analysts Canadean.

Caramels & toffees and medicated confectionery are forecast to propel the $280m Swedish sugar confectionery segment up 1.4% in value sales by 2017 – 0.2% faster than the chocolate sector.

Rare occasions

Speaking to ConfectioneryNews, Canadean report analyst Ronan Stafford acknowledged that the figures were not dramatically high and reflected stagnation in overall food in Sweden due to the economic climate.

But he said that caramels & toffees and medicated confectionery were segments that can either profit from or remain unaffected by economic hardship.

“What we are losing is our impulse snack or daily treat,” said Stafford, explaining why chocolate was growing at a slightly slower rate.

“If you want to grow the category you have to go for the rare occasions.

Confectionery market share in Sweden. Source Nielsen and Cloetta Annual Report

“A lot of the growth in caramels & toffees is being driven by gifting…Secondly, medicated confectionery is far more likely to withstand poor economic conditions because it’s medicinal.”

Caramels & toffees and medicated confectionery

The caramel & toffees segment is the second largest sugar confectionery category in Sweden behind gums and jellies and had value sales of $56m in 2012. Canadean forecasts the segment will have a compound annual growth rate (CAGR) of 2% up until 2017.

Medicated confectionery is the second smallest segment in the sugar confectionery just ahead of mints. It is currently pegged at $27m and is set for a 1.9% CAGR by 2017.

However, Stafford said that growth in medical lozenges is Sweden was not unique and was in line with the overall European picture.

Swedish confectionery market in figures

Segment 2012 Value Sales (US $) 2012-17 CAGR 2012 Value Share
Confectionery 1.3bn 1.3%
Chocolate 959m 1.2% 72.3%
Gum 88.5m 1% 6.7%
Sugar Confectionery 280m 1.4% 25.6%

Low per capita consumption

“There’s much less of a sweet tooth in Sweden,” continued Stafford.

Sales channels for confectionery are expected to remain unchanged. Hypermarkets and supermarkets account for half of all sales, while convenience stores make up 28% of confectionery sales.Per capita confectionery consumption is far lower in Sweden (3.6 kg) than many neighbouring countries, such as Finland (6.4 kg), Demark (11 kg) and Norway (12 kg).

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements