Chocolate leads sector in France
The French confectionery market has been forecast to increase at a compound annual growth rate (CAGR) of 2.2% over the next five years, increasing from a value of EUR 6 billion at the start of 2012, to reach a total of EUR 6.7 billion by 2017.
According to a recent report, ‘The Future of the Confectionery Market in France to 2017,’ ‘Chocolate’ is forecast to continue as the largest sector in the industry, and will be valued at around EUR 4.5 billion by 2017.
After two years of sluggish performance, chocolate confectionery has recovered somewhat, posting healthy value growth in 2011 and 2012. Consumers seem to have regained their interest in chocolate confectionery, particularly those products with favourable prices.
With a 20% value share in 2012, Ferrero France remains the leading manufacturer in chocolate confectionery. The strong position of the Italian manufacturer from Alba is due to its extensive portfolio, with brands such as Kinder and Ferrero Rocher, which are well-established among French consumers, as well as its strong communication strategy. Ferrero leads countlines, chocolate with toys and seasonal chocolate.
The second largest category, ‘Sugar Confectionery’ will be worth around EUR 1.2 billion by 2017. Lollipops and such products as pastilles, gums, jellies and chews have benefited from an ongoing upgrade towards fancier shapes and more fizzy tastes.
Surprisingly, children are not the only consumers of such products. Adults who want to self-indulge – and return to their childhood – are often called adulescents.
The sugar confectionery competitive environment is highly fragmented, with the top five players accounting for less than half the category’s value sales in 2012. With a value share of more than 13%, Haribo-Ricqlès-Zan SA leads sales in 2012.
Despite this, the fastest growing category is suggested to be a third sector, ‘gum’, which will grow at a CAGR growth rate of over 2.25% between 2012 and 2017.
The good news in the middle of 2012 was that there are still no signs of a slowdown in overall confectionery consumption. Despite the increasingly unfavourable short-term economic outlook, advertising investment seems to be being maintained.
Even if consumer confidence should further decline, marketers believe that consumers could switch back to the most basic or affordable items in confectionery, as seen in 2008/2009, but with a difference this time around – the fear of being overweight or obese seems to have subsided.
