World Candy Market Brief

World Candy Market Brief

The global outlook series on Candy provides statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of trends shaping the candy industry, and enumerates recent developments, mergers, acquisitions, and other strategic industry activities. Major regional markets discussed in the report include United States, Canada, Mexico, UK, Norway, Hungary, Switzerland, China, India, and Indonesia, among others. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 732 companies worldwide.

CANDY GOS-021
A GLOBAL OUTLOOK, SEPTEMBER 2008


Contents


1. Overview 1

2. Market Trends and Issues 1
Lifestyles, Eating Habits and Demographic Profiles 1
Consumer Profile for Candies 2
Disposable Incomes and Other Macro Economic Factors 2
Product Innovation, Package Innovation and Branding 2
Competition from Snack Foods and other Impulse Buys 2
Seasonality 2
National Attitudes Affect Candy Consumption 3
Healthy Candies Vroom the Candy Street 3
Dark Chocolates Catches Consumer Fancy as a Healthful Indulgence 3
Licorice, A Dominant Candy Sector 4
Innovation Spurred by the War for Shelf and Mind Space 4
New Flavors and Natural Ingredients Drives Up the Candy Sector 4
Novelty/Interactive Candies Foray into the Sector 4
Seasonal Sales – Going Strong 5
Licensed Candies: Strengthening Profits 5
Private Label – Hitting the Right Note 5
A ‘Flavorful’ Growth 5
Demand Growing for Soft Chewy Segment of Non-Chocolate Candies 6
Sour Soars 6
Caramel and Fruity Flavors Dominate the Chewy Candy Sector 6
Combo Flavor Candies Catching Up 7
Petty Looks Pretty 7
Energy Bars: The Pocketsize Power Houses 7
High Costs of Living Propel Value Sales 7
Mature Markets Seek ‘Healthier’ Sales 7
Candy Makers Shifting Operations Overseas 7
Premiumization Pampers Value Growth in Chocolate Candy 8
Sugar Candy Continues to Lure Strong Sales 8
Indulgence and Fitness: Strategic ‘Fit’ for the Candy Industry 8
Product Variety Deepens Market Fragmentation 8
Candy Sector Attracts Investors 8
Tactical Acquisitions Charges Up the Candy Market 8
Consolidation Leaves no Room for Small Players 9
Rising Business Costs to Affect Candy Market 9
Requirement of More Transparent Labeling for Candy Sector 9
Retail Makeover Widens Candy Sales 9
‘Developing’ Markets 10

3. Segmental Perspective 10
Sugar Candy 10
Innovation and Positioning Strategies Upstage the Sugar Sector 10
Appeasing the Connoisseur is no Kid’s Game 10
Licensing and Novelty: Reviving Fortunes 11
Chocolate Candy 11
Masking the Fall in Volumes 11
Chocolate Candy Market – Competition from Private Label
Warded off 11
Weakening Foothold in Mature Markets 11
Squeezing Profitability Vs Industry Ploys 11
Candied Fruits and Nuts 12
Healthy Eating Beefs Up Demand 12
Outlook 12

4. Mergers & Acquisitions 13

5. Strategic Corporate Developments 20

6. Products Launches/Developments 24

7. A North American Perspective 27

7a. United States 27
An Overview 27
Market Trends 27
Rise of the "Baby Boomlet" Generation Sets in Changes in the
US Candy Market 27
Introduction of Intense Non-Chocolate Flavors Drive Up the US
Candy Market 27
Chocolate Flavored Candies Make a Comeback 28
Sales of Candies and Chewing Gums Rising in Convenience Stores 28
Sugar-Free Candies Gaining Grounds in Non-Chocolate
Confectionery Sector 28
Premium Chocolates, A Darling Candy Category of the Mass-
Market Channels 28
Growth Drivers 28
Table 1: Candy Market in the US (1984-2005): Per Capita
Consumption of Chocolate and Non-Chocolate Candy in Pounds 29

Table 2: Candy Market in the US (2007): Value Sales (in US$
Million) and Volume Sales (in Million Units) by Category –
Chocolate Candy, Non-Chocolate Candy, and Gums 29

Table 3: Candy Market in the US (2005-2006): Sales in US$
Million through Supermarkets by Category – Candy-Chocolate,
Candy-Nonchocolate, Candy-Chocolate-Miniatures,
Candy-Chocolate-Special, Marshmallows, Breath Sweeteners,
Candy-Lollipops, Candy-Dietetic-Nonchocolate,
Candy-Nonchocolate-Miniatures, Candy-Hard-Rolled, and Others 30
2004-2005: A Review 30
Table 4: Leading Brands in the US Chocolate Candy Market
((2005-2006): Percentage Breakdown of Value Sales for
Hershey's, M & M's, Hershey's Kisses, Reeses, Hershey's
Nuggets, Private Label, Dove, Snickers, Cadbury, Lindt
Lindor, and Others 31

Table 5: Leading Brands in the US Chocolate Candy Market
((2005-2006): Percentage Breakdown of Volume Sales for
Hershey's, M & M's, Hershey's Kisses, Cadbury, Private Label,
Snickers, Hershey's Special Dark, Hershey's Symphony, Reeses,
Hershey's Nuggets, and Others 31

Table 6: Leading Brands in the US Non-Seasonal Chocolate
Candy (boxes, pouches, bags, and bars more than 3.5 oz.)
Market (2005): Percentage Breakdown of Value Sales for
Hershey’s Chocolate, M&Ms, Hershey’s Kisses, Reese’s,
Hershey’s Nuggets, Private label, Cadbury, Snickers, Dove,
York Peppermint Patty, and Others 32

Table 7: Leading Brands in the US Non-Seasonal Chocolate
Candy (boxes, pouches, bags, and bars more than 3.5 oz.)
Market (2005): Percentage Breakdown of Volume Sales for
Hershey’s Chocolate, M&Ms, Reese’s, Hershey’s Kisses,
Cadbury, Private label, Snickers, Hershey’s Nuggets, Dove,
York Peppermint Patty, and Others 32
Gainers Vs Losers 32
Non-Chocolate Candy: Cursed by Incursions 32
Table 8: Leading Brands in the US Hard Sugar Candy Market
(2006-2007): Volume Sales (in Million Units) and Value Sales
(in US$ Million) for Jolly Rancher, Werthers, Tootsie Roll
Pops, Pearson Nips, and Lifesavers 33

Table 9: Hard Packaged and Roll Candy/Sugar Candy (Lollipops)
Market in the US (2005*): Sales in Million Units by Product –
Jolly Rancher, Charms Blow Pop, Tootsie Roll Pops, Tootsie
Bunch Pops, Spangler Dum Dum Pops, Tootsie Roll Caramel Apple
Pops, Starburst Fruit Chew Pops, Charms Zip A Dee Doo Da
Pops, Bubblicious Burst Pops, and Spangler Saf-T-Pops 33

Table 10: Non-Chocolate (Non-Seasonal), Sugar-free Candy
Market in the US (2005): Percentage Breakdown of Value Sales
by Brand – Lifesavers, Crème Savers, Private label, Pearson
Nips, Altoids, Sweet ‘n Low, Werther’s, Jolly Rancher,
Lifesavers Delites, Russell Stover, and Others 34

Table 11: Leading Brands in the US Non-Chocolate
(Non-Seasonal), Sugar-free Candy Market (2005): Sales in
Million Units for Werther’s, Lifesavers, Private label, Crème
Savers, Pearson Nips, Sweet ‘n Low, Altoids, Lifesavers
Delites, Russell Stover, and Jolly Rancher 34
Branded Vs Private Label Candy 34
Diet Candy – The Sugar-free ‘Sweetener’ 34
Table 12: Leading Brands in the US Diet Candy Market (2006):
Sales in US$ Million for Lifesavers, Creme Savers, Altoids,
Pearson Nips, Werthers, Sweet 'n Low, Van Melles Mentos,
Lifesavers Delites, Russell Stover, and Jolly Rancher 35

Table 13: Leading Brands in the US Diet Candy Market (2006):
Sales in Million Units for Lifesavers, Creme Savers, Altoids,
Pearson Nips, Werthers, Sweet 'n Low, Van Melles Mentos,
Lifesavers Delites, Russell Stover, and Jolly Rancher 35
Sugar-Free Products Enter Mainstream 35
Table 14: Leading Brands in the US Sugar-free Chocolate Candy
Market (2006-2007): Volume Sales (in Million Units) and Value
Sales (in US$ Million) for Russell Stover, Hershey's, Dove,
Reese's, and Whitman's Sampler 36

Table 15: Leading Brands in the US Breath Freshener Market
(2006-2007): Volume Sales (in Million Units) and Value Sales
(in US$ Million) for Altoids, Ice Breakers, Tic Tac, Listerine
Pocketpacks, and Breathsavers 36

Table 16: Leading Brands in the US Novelty Non-Chocolate Candy
Market (2006-2007): Sales in US$ Million for Tootsie Roll
Child's Play, Wonka Nerds, Pez, Wonka Sweetarts, and Topps Baby
Bottle Pop 36

Table 17: Leading Mint Brands in the US (2006-2007): Volume
Sales (in Million Units) and Value Sales (in US$ Million) for
Lifesavers, Mentos, Private Label, Doublemint Twins, and Red
Bird 36

Table 18: Leading Brands in the US Regular Gum Market
(2006-2007): Volume Sales (in Million Units) and Value Sales
(in US$ Million) for Doublemint, Juicy Fruit, Wrigley's
Winterfresh, Freedent, and Wrigley's Spearmint 37

Table 19: Leading Brands in the US Sugarless Gum Market
(2006-2007): Volume Sales (in Million Units) and Value Sales
(in US$ Million) for Orbit, Extra, Trident, Eclipse, and
Dentyne Ice 37

Table 20: Sugar-Free Candy Market in the US (2006):
Percentage Breakdown of Volume Sales by Category – Chocolate,
Non-Chocolate, Chocolate Special, Chocolate Mini, Lollipops,
Breath Sweeteners, Hard Rolled, Dietetic Chocolate,
Non-Chocolate Mini, Dietetic Non-Chocolate, and Candy Kits 37
Snacking Posts Smacking Growth 37
Table 21: Leading Snack Size Chocolate Brands in the US
(2006-2007): Volume Sales (in Million Units) and Value Sales
(in US$ Million) for Reese's, Snickers, Kit Kat, M&M's, and
Butterfinger 38

Table 22: Snack Size Chocolate Candy Market in the US (2005 &
2006): Value Sales in US$ Million by Store – Supermarkets,
Discounters, and Drug Stores 38

Table 23: Snack Size Chocolate Candy Market in the US (2005 &
2006): Volume Sales in Millions of Units by Store –
Discounters, Supermarkets, and Drug Stores 38
Savvy Marketers Entice the Hispanic Tastes 38
Few Private Labels 39
Table 24: Private Label Candy Market in the US (2005 & 2006):
Value Sales (in US$ Million) and Volume Sales (in Millions of
Units) 39

Table 25: Private Label Candy Market in the US (2005 & 2006):
Sales in US$ Million by Category – Non-Chocolate Chewy Candy,
Chocolate Candy, Hard Sugar Candy, Plain Mint, Diet Candy,
Novelty Candy, Specialty Nut/Coconut Candy, Licorice, Breath
Freshener, and Non-Chocolate Chewy Candy Bar 39
Changing Face of the Candy Market 40
Novelty Candy: Splendid Growth 40
Dichotomy Props Sales 40
Seasonality Soars Sales 40
Table 26: Non-Chocolate Candy Market in the US (2005 & 2006):
Sales in US$ Million by Occasion – Easter, Christmas,
Halloween, and Valentine’s Day 41

Table 27: Chocolate Candy Market in the US (2005 & 2006):
Sales in US$ Million by Occasion – Easter, Christmas,
Valentine’s Day, and Halloween 41

Table 28: Seasonal Wrapped Candy Market in the US (2005 &
2006): Sales in US$ Million by Type – Chocolate Easter Candy,
Chocolate Christmas Candy, Chocolate Valentine Candy,
Non-Chocolate Christmas Candy, Non-Chocolate Easter Candy,
Non-Chocolate Valentine Candy, Chocolate Halloween Candy,
Non-Chocolate Halloween Candy, Chocolate AO Seasonal Candy,
and Non-Chocolate AO Valentine Candy 41

Table 29: Seasonal Wrapped Candy Market in the US (2005 &
2006): Sales in Million Units by Type – Non-Chocolate AO
Valentine Candy, Chocolate Easter Candy, Chocolate Christmas
Candy, Chocolate Valentine Candy, Non-Chocolate Easter Candy,
Non-Chocolate Christmas Candy, Non-Chocolate Valentine Candy,
Non-Chocolate Halloween Candy, Chocolate Halloween Candy, and
Chocolate AO Seasonal Candy 42
Retailing Trends 42
Food Stores Clock Highest Sales 42
Table 30: Candy/Chocolate (Box/Bag) Market in the US (2005 &
2006): Sales in US$ Billion by Channel – Supermarkets,
Discounters, and Drugstores 43

Table 31: Candy/Chocolate (Box/Bag) Market in the US (2005 &
2006): Sales in Million Units Channel – Supermarkets,
Discounters, and Drugstores 43

Table 32: Special Chocolate Candy Market in the US (2005 &
2006): Sales in Million Units by Channel – Supermarkets,
Discounters, and Drugstores 43
Supermarkets are the Largest End-Outlets 43
Table 33: Candy Market in the US (2005 & 2006): Sales in
Billion Units by Channel – Supermarkets, Drug Stores, and
Discounters 43
Hard Candy – Leading Non-Chocolate Candy Category 44
Table 34: Non-Chocolate (Non-seasonal) Hard Candy Market in
the US (2005): Percentage Breakdown of Value Sales by
Category – Jolly Rancher, Altoids, Crème Savers, Werther’s,
Tootsie Roll Pops, Lifesavers, Pearson Nips, Charms Blow
Pops, Private label, Spangler Dum Dum, and Others 44

Table 35: Leading Hard Candy Vendors in the US (2005):
Percentage Breakdown of Value Sales for Kraft Foods/Nabisco,
Hershey, Kraft/Callard & Bowser-Suchard, Tootsie Roll
Industries, Storck USA, Nestle USA, Charms, Private Label,
Spangler Candy, Brach's Confections, and Others 44

Table 36: Leading Brands in the US Non-Chocolate Chewy Candy
Market (2006-2007): Volume Sales (in Million Units) and Value
Sales (in US$ Million) for Private Label, Starburst,
Skittles, Gummisavers, and Jelly Belly 44

Table 37: Non-Chocolate Chewy Candy Bar (<3.5 oz.) Market in
the US (2005 & 2006): Sales in Million Units by Category –
Private Label and Others 45

Table 38: Leading Brands in the US Non-Chocolate Chewy Candy
Market (2005): Percentage Breakdown of Value Sales for
Starburst, Private label, Skittles, Gummisavers, Tootsie
Roll, Reese’s Pieces, Jelly Belly, Swedish Fish, Mike & Ike,
Sour Patch Kids, and Others 45

Table 39: Leading Brands in the US Non-Chocolate Chewy Candy
Market (2005): Sales in Million Units for Starburst,
Skittles, Private label, Gummisavers, Reese’s Pieces, Tootsie
Roll, Mike & Ike, Swedish Fish, Sour Patch Kids, Jelly Belly,
and Others 45
Candy Bars and Packaged Candy Lead in Sales 45
Table 40: Leading Brands in the US Chocolate Gift Boxes
Market (2006-2007): Volume Sales (in Million Units) and Value
Sales (in US$ Million) for Russell Stover, Whitman's Sampler,
and Pot of Gold 46

Table 41: Leading Brands in the US Non-Seasonal Chocolate
Candy (bags, boxes, bars, pouches > 3.5 oz.) Market (2005):
Percentage Breakdown of Value Sales for Hershey’s Chocolate,
M&Ms, Hershey’s Kisses, Reese’s, Hershey’s Nuggets, Private
label, Snickers, Cadbury, Dove, York Peppermint Patty, and
Others 46

Table 42: Leading Brands in the US Non-Seasonal Chocolate
Candy (bags, boxes, bars, pouches > 3.5 oz.) Market (2005):
Volume Sales in Million Units for Hershey’s Chocolate, M&Ms,
Reese’s, Hershey’s Kisses, Cadbury, Private label, Snickers,
Hershey’s Nuggets, Dove, York Peppermint Patty, and Others 46

Table 43: Leading Brands in the US Chocolate Candy Bars (<
3.5 oz.) Market (2006): Sales in US$ Million for M & M’s,
Hershey’s, Reese’s, Snickers, Kit Kat, Twix, Three
Musketeers, Nestle Crunch, Nestle Butterfinger, and York
Peppermint Patty 47

Table 44: Leading Brands in the US Chocolate Candy Bars (<
3.5 oz.) Market (2006): Sales in Million Units for Hershey’s,
Reese’s, M & M’s, Snickers, Kit Kat, Nestle Crunch, Nestle
Butterfinger, Twix, Three Musketeers, and York Peppermint
Patty 47
Outlook 47

7b. Canada 48
Overview 48
Table 45: Canadian Candy Market by Category – Chocolate
Confectionery, Gum, and Sugar Confectionery Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2003 through 2008 48

Table 46: Canadian Candy Market (2004 & 2008): Percentage
Breakdown of Value Sales by Category – Chocolate
Confectionery, Gum, and Sugar confectionery 49

7c. Mexico 49
NAFTA & Perceptive Quality Drive US Imports to Mexico 49
Retailers Dominate the Distribution Channel 49
Growth Drivers 49
Outlook 50
Table 47: Mexican Candy Market by Category – Chocolate
Confectionery, Gum, and Sugar Confectionery Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2003 through 2008 50

Table 48: Mexican Candy Market (2004 & 2008): Percentage
Breakdown of Value Sales by Category – Chocolate
Confectionery, Gum, and Sugar confectionery 50

8. Japan 51
Tapping the Gray Market: An Emerging Market Trend 51

9. A European Perspective 51
Candy Market in Europe – A Kaleidoscope of Differing Tastes 51

9a. France 51
An Enthusiastic Consumer of Chocolate 51

9b. Germany 52
An Overview 52

9c. Italy 52
Local Producers Eye Overseas Opportunities 52

9d. Russia 52
Chocolate Consumption Still a Luxury 52
Caramels: A Tough Sell 52
Consolidation Ripples in Russia 53

9e. Spain 53
Overview 53

9f. United Kingdom 53
Overview 53
Outlook 53
Private Labels Closely Trail Market Leaders 54
Table 49: Chocolate Candy Market in the UK (2005 & 2006):
Advertising Expenditures in £ Million by Media Type – TV,
Outdoor, Cinema, Radio, and Press 54

9g. Rest of Europe 54
Overview 54

i. Austria 55
Overview 55

ii. Belgium 55
Overview 55

iii. Bulgaria 55
Overview 55

iv. Czech Republic 56
Overview 56

v. Denmark 56
Overview 56

vi. Finland 56
Overview 56

vii. Greece 56
Overview 56

viii. Hungary 57
Overview 57

ix. Ireland 57
Overview 57

x. Norway 57
Overview 57

xi. Poland 58
Overview 58

xii. Portugal 58
Overview 58

xiii. Sweden 58
Overview 58

xiv. Switzerland 58
Overview 58

xv. The Netherlands 59
Overview 59

xvi. Turkey 60
Overview 60

xvii. Ukraine 60
Overview 60

10. An Asia-Pacific Perspective 60

10a. Australia 60
Overview 60

10b. New Zealand 61
Overview 61
Market Players 61

11. An Asian Perspective 61
Market Trends 61
Sugar Candy Consumption Exceeds Chocolate Consumption 61
Southeast Asia Represents a Significant Consumer Base 61
Price Sensitivity Discounts Premiumization 61

11a. China 62
Market Trends 62
Changing Landscape of Chinese Candy Market 62
Demand Picking Up 62
Candy Gifts – Gaining Momentum 62
Green Field Ventures by MNCs Domesticate the Candy Industry 62
Consumer Perspective 62
Table 50: Chocolates Market in China (2005 & 2006):
Production in Thousand Tons 63
Table 51: Leading Brands in the Chinese Chocolate Products
Market (2005): Percentage Breakdown of Sales for Dove,
Golden Monkey, Shenfeng, and Others 63
Outlook 63

11b. Hong Kong 63
Overview 63

11c. India 63
Overview 63
Outlook 64

11d. Indonesia 64
Overview 64
Outlook 64
Table 52: Candy Market in Indonesia (2005 & 2006): Imports in
Value (US$ Million) and Volume (Thousand Tons) 64

Table 53: Candy Market in Indonesia (2005 & 2006): Exports in
Value (US$ Million) and Volume (Thousand Tons) 65

Table 54: Candy Market in Indonesia (2003-2008): Consumption
in Kilotons 65
Table 55: Candy Market in Indonesia (2006): Advertisement
Spending in Rp Trillion 65

11e. Korea 65
Overview 65

11f. Malaysia 66
Multinational Companies Dominate 66

11g. Philippines 66
Overview 66
Leading Players 66
Local Companies Pine for Success 66

11h. Singapore 66
Indulgence in Chocolate Reaching New Heights 66
Premium Products Sing Sweet Successes 66

11i. Taiwan 67
Low-Sweet Functional Products are the Sweetest Sellers 67

11j. Thailand 67
Westernization Drives up Sales 67

11k. Vietnam 67
Overview 67
The Rough Playing Field 67

12. A Latin American Perspective 68
The World’s Fastest Growing Confectionery Market 68

12a. Argentina 68
Overview 68

12b. Brazil 68
Overview 68
Outlook 68

12c. Chile 69
Overview 69

12d. Colombia 69
Overview 69

12e. Venezuela 69
Regaining the ‘Lost’ Snacking Market 69

13. A Middle East Perspective 69

13a. Saudi Arabia 69
Overview 69

13b. Israel 70
Political Unrest Prevails Over Liberal Economic Policies 70

14. An African Perspective 70

14a. South Africa 70
An Overview 70
Brazilian Imports Give a Death Blow to the Candy Industry 70

14b. Egypt 71
An Overview 71


GLOBAL DIRECTORY