The Haribo group has reportedly cancelled plans for a major new confectionery plant in Germany, citing disrupted market conditions as a factor in hindering the multi-million project’s development, writes Neill Barston.

Notably, the plans were first put in motion in May 2024, when the €300 million project was initially unveiled for the Neuss-Holzheim park in North Rhine-Westphalia, with a slated opening for 2028.

It was reportedly expected to significantly expand its production capacity from its nearby Landstrasse site, with a phased switchover between the two locations anticipated.

However, tightening market conditions have meant that despite some major wins for the Goldbears manufacturer, including opening its first ever US-based manufacturing site at Pleasant Prairie, Wisconsin in 2023, which has notably extended its North American capabilities, there remain uncertainties in wider global markets.

This was reflected in a confident appearance at this year’s Sweets & Snacks Expo event in Las Vegas, US, which showcased extended series, augmenting its flagship series, demonstrating clear demand in the region for the longstanding confectionery brand which has just over 100 years of heritage to its name.

The company has also this year invested significantly in opening expanded warehouse capacity at its Yorkshire facilities in the UK, as well as opening new retail stores, which underlined its long-term confidence in the market.

Indeed, as our title has covered, the wider market for gummies appears to have been notably strong in the past few years, though production and ingredients costs have also been elevated as well, which has also caused an increase in manufacturing costs.

Furthermore, as Confectionery Production has previously covered, geopolitical conditions with ongoing wars in Ukraine and Iran have impacted industries across sectors, as consumers tighten their collective belts in seeking out less premium options within the sector, faced with less disposable income.

Speaking on its reported decision not to proceed with building the new German site, the manufacturer reportedly told Just Food that a “project of this size requires certainty, both in terms of timeframes and budget,” which given global financial headwinds, the company opted against.

Confectionery Production has approached Haribo for further comment on the story, but at the time of going to press had not received a response.