Sugar & gum confectionery have always been in high demand, with multiple varieties and flavors hitting the shelves in the market every now and then. The quenching experience of indulging in different flavors making consumers make purchases in the sugar & gum confectionery market. Manufacturers are also investing in attractive packaging formats to enhance customer engagement, which in turn would lead to high volume sales.
Sugar & gum confectionery products are usually consumed by people from all walks of life and age groups. Ranging from individual candies to sophisticated bars, sugar & gum confectionery items have hardly witnessed sluggish demand over the past few years. Consumer preferences with respect to type of sugar & gum confectionery products differ from region to region, which is highly dependent on cost, taste preferences, culture, and several other factors.
Sugar & Gum Confectionery Market- Notable Highlights
Leading players operating in the sugar & gum confectionery market space include Cadbury PLC., Chupa Chups SA., Nestl SA, Kraft Foods Inc., The Hershey Company, Ferrero SpA., HARIBO Dunhills (Pontefract) PLC, Perfetti Van Melle S.P.A., WM Wrigley JR Company, Lotte Confectionery Co Ltd, Lindt & Sprungli, and GBO Mendelez International.
- Nestlé made an official announcement of selling the business of its U.S. confectionery to Ferrero for an all-cash deal of USD 2.8 billion in 2018. This collaboration was aimed at helping Nestlé to boost its U.S. confectionery business and invest as well as innovate across a new range of product categories demonstrating growth potential.
- The Hershey Company launched the ‘Cocoa for Good’, an initiative oriented toward sustainability and aiming to address pressing issues across prominent cocoa-growing regions. This was one-of-its-kind collaborative approach for a sustainable cocoa supply whilst ensuring solutions for various social, economic, and environmental challenges in these cocoa-producing regions.
Price-Sensitivity Remains a Key Sales Determinant in Sugar & Gum Confectionery Market
Price-sensitivity remains a key determining factor with far-reaching impact on consumer decision-making in the sugar & confectionery landscape. Various price promotions remain the key cornerstone to be taken into consideration by leading brands to make their products stand out across the shelves.
The consumer quest for reasonable products puts the onus on leading market players to offer compelling and unique deals to create more reasons for consumers to choose them over other brands. In the sugar & gum confectionery landscape, there are enough scope for the market players to grow by staying at the forefront of innovation and experimentation. This could possibly include offering sophisticated products with enticing flavors and captivating appeal.
Growing Reluctance toward Sugar-based Variants to Dilute Sales
The demand for sugar & gum confectionery tends to be dwindle across various regions. This deterioration of demand can be attributed to a multiple reasons, ranging from the increasing rate of global obesity pandemic to sluggishness of gum sales. Rising governmental intervention to ensure general well-being via imposition of sugar taxes is resulting in people cutting back on sugar & gum confectionery products.
Rising concerns vis-à-vis health and well-being are also predominantly responsible for decline in demand for sugar & gum confectionery. Sugar & gum confectionery remains in the spotlight for not only the sugar content, but also on account of the artificial colors and flavors used. There has been a constant clamor for replacing the artificial ingredients with natural ones, and manufacturers have also started commercializing ‘free-from’ products for boosting consumer confidence.
Asia Pacific Remains Highly Lucrative for Sugar & Gum Confectionery Brands
Consumption of sugar & gum confectionery across key countries in Asia-Pacific is likely to take off significantly, notably assisted by burgeoning middle class population, impressive economic growth, and flourishing retail industry. Developing economies, including India & China, are likely to witness substantial demand for sugar & gum confectionery products of multiple varieties and flavors. This, in turn, is likely to create sustained opportunities for sugar & gum confectionery brands to gain sizeable revenues.
Sugar & Gum Confectionery Market Segmentation
By Distribution Channel
- Store Based
- Non-Store Based
This post was originally published on The Market Plan