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UK Confectionery
UK Confectionery
- Report price : $ 1 063
- Publication date : February 2007
- Length : 121 pages
UK Confectionery
The UK confectionery market, valued at an estimated £4.41bn in 2006, has seen a slowing rate of growth. Chocolate confectionery accounts for the bulk of sales in the market, with the remaining share taken up by sugar products.
Confectionery consumption in the UK has come under pressure from the healthy eating lobby. While suppliers' bodies state it is a matter of encouraging a more balanced approach to eating, the sector has been relatively slow in investing in healthier options. There has been some progress, particularly in the sugar market, with sugar-free and reduced-sugar products, fruit juice and vitamin-supplemented options, among others. In addition, the chewing gum and mints sectors have developed a more functional role in the oral health market.
For chocolate confectionery, the way forward has been less defined. Having to retain quality and taste has limited the choices available. While dark chocolate is offered as a healthier option to milk, and there is some development of wellbeing brands, progress is relatively slow. However, in the face of this, sales still remain relatively robust. With suppliers aware of the indulgent positioning of their products, the premium market has seen considerable development while occasions such as everyday sharing have also been targeted.
The UK market remains dominated by Cadbury, Mars and Nestlé, and new product development (NPD) is firmly centred on brand extension rather than bringing new names to the consumer. This strategy has worked with some success. Although there are some in the industry who bemoan the lack of innovation, given the cost in terms of investment of bringing new products to the market, it is hardly surprising that this cautious approach has been adopted.
Confectionery continues to enjoy a high level of consumer penetration. Exclusive research commissioned for this report indicates that while some have concerns about fat and sugar levels in chocolate in particular, they continue to regard it as an affordable everyday indulgence.
The confectionery market has weathered the healthy-eating debate fairly well to date. However, innovation in other rival sectors, such as biscuits and cakes, where better-for-you products are now established, offers a challenge. The outlook for the market remains positive, but suppliers cannot be complacent.
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