Food Pacific Manufacturing Journal

No Stress on Sweets

RISING consumer affluence in major Asian markets like India, Indonesia and China will be crucial to the growth of the confectionery segments. In general, analysts agree that economic recovery in emerging markets is already having an impact on key confectionery categories. Strong consumer confidence and higher disposable incomes benefit the performance of key indulgence categories, such as chocolate confectionery and functional gum, which command higher unit prices and are particularly sensitive to an improvement in the economic climate.

The stability of the industry is reflected in terms of global launch activity: in the first half of 2011, confectionery was the leading food and drinks sector, reports Innova Market Insights. This occurred despite the industry having a rough ride in 2010, as a result of rising prices in the wake of increasing raw material costs, particularly for cocoa and sugar.

Chocolate continues to dominate in confectionery, both in terms of market value and of launch activity with over two-thirds of the confectionery launches tracked by Innova in the period, ahead of sugar confectionery with just under 30 per cent and chewing gum with 5 per cent. New scientific evidence linking chocolates to heart health is likely to push chocolates even further ahead of other confectionery segments.

Even in the middle of financial crisis, the snacks and sweets industry has thrived. In 2008, consumption rose even as incomes plummeted.

Small treats are indeed affordable stress relievers.