Category Focus: Confectionery

Figures from market analysts Nielsen show the chocolate sector growing at 6.3% year on year, making it worth £3.35bn. Bitesize, moulded and countlines are all big sectors and are all in good growth, Nielsen says.

The sugar sector is worth £1.2bn and is growing at 4.6% year on year. Within this, fruits is the biggest sector, growing at 5.2% year-on-year, says Nielsen. Gum is the second biggest, growing at 10% year-on-year.

This is backed up by figures for the from TNS Worldpanel, which show chewing and bubble gum rising by 14% year-on-year in the take-home confectionery market, to reach £96.4m.

TNS says: “Chewing gum and bubble gum is continuing to see the effects of strong NPD, which has rejuvenated the sector.

“Trident is continuing to launch new flavours, which will continue to boost growth.”

TNS figures show the take-home confectionery market has grown by 6.1% over the last year and is worth more than £2.5bn.

TNS says the growth is “very much due to shoppers buying confectionery more often in the market, currently around once every eight or nine days.”

Shoppers are also buying more confectionery on each visit, despite campaigns on obesity, eating habits and other health issues.

The reason confectionery has been able to weather the storm is in part thanks to manufacturers responding to health concerns over the past 12 to 18 months by introducing healthier products containing less fat, less sugar or fewer calories.

The growth of the bitesize sub-category can also be attributed in part to this trend, while the widespread introduction of confectionery free from artificial colours and flavours has helped mitigate concerns about ingredients.

Another sector enjoying strong growth in the take-home market is everyday chocolate, says TNS.

One reason for this could be the increase in the indulgence trend, which is seeing consumers purchasing higher-quality chocolate, often in the form of large block chocolate, and taking it home.

Sharing bags are another growing trend.

Marketing spend

Companies making significant marketing investments in 2008 include Nestlé, which is spending £19m on marketing across five brands – £4m on KitKat, £4.5m on Rowntrees, £1.5m on Smarties, £6m on Aero and £3m on Milky Bar.

Meanwhile, CTB is pouring £17m into a marketing campaign for Cadbury Dairy Milk.

Top take-home confectionery brands

1. Cadbury Dairy Milk
2. Maltesers
3. Quality Street
4. Cadbury's Roses
5. Wrigley's Extra
6. Mars bar
7. Celebrations
8. Cadbury's Heroes
9. Galaxy Milk
10. Toblerone bar

Source: TNS Worldpanel