CONFECTIONERY MARKET ANALYSIS

Regional Analysis

North America is the largest confectionery market region with the U.S. being a prominent consumer of confectionery products. One of the major drivers for this market is the seasonal demand for confectioneries. There is a high demand for candies and chocolates, as they are a vital part of the U.S. festivals. The consumption of chocolate and other confectionery treats is associated with many events and holidays throughout the year such as Valentine's Day, Halloween, Easter, Thanksgiving, and Christmas. The sales of confectionery products in the U.S. are observed to be high during such festivals. Also, the urban population is more inclined towards consumption of confectionery compared to its rural counterparts. According to the U.S. Census Bureau, over 80% of the population resided in urban settings in 2017. According to UN sources, 82.3% of the population is urban in Canada. These factors are expected to contribute to the market growth in the region.

Europe is also among the leading consumers and producers of confectionery products. In Switzerland, sales of premium chocolate continued to rise in 2017. Swiss consumers were more inclined towards high quality confectionery products, which incorporate organic, fair-trade chocolate and/or chocolate with a high cocoa content. Leading players such as Chocolat Bernrain A.G. and Max Felchlin A.G are offering organic chocolates in the market. In 2016, the total quantity of Swiss chocolate sold in the domestic and international market increased by 2.3% to 185,639 tons from the previous year. According to Coherent Market Insights, chocolate confectionery segment was the largest segment in France in 2017. In 2016, a thriving tourism industry, which hosted over 80 million tourists according to French government sources coupled with high local demand is expected to further bolster the market for chocolate confectionery in the country. Market players operating in France such as Chocoladefabriken Lindt & Sprüngli AG (Lindt), Nestle S.A., and Mondelez International have reaped the benefits of the tourism industry. Lindt reported a sales growth of 4.8% in 2017 over the previous year and plans to invest US$ 32.3 to expand manufacturing of chocolates in Switzerland.