Executive Summary

The UK has one of the largest confectionery markets in the world, with per capita consumption currently estimated at 14 kilograms (kg) per person, per capita, per annum. Key Note estimates that the retail sales market was worth £5.68bn in 2000, having grown by 1.8% since 1999. Growth during the last few years has been less dramatic, as household expenditure on food has fallen. Furthermore, confectionery now faces increased competition for consumers' disposable income from a variety of other items.

The largest market sector is chocolate confectionery. The other sector, sugar confectionery, encompasses a wider range of products and companies. The UK is not so well-developed in the area of sugar confectionery, particularly when compared with overseas markets such as the US and some European countries. However, it now seems that this sector will witness increased investment from the major players. One of the fastest-growing sectors is chewing gum, which now accounts for 6.1% of the total confectionery market.

The majority of confectionery is bought on impulse, from a variety of outlets. However, one feature of the market has been the growing influence of the multiple grocers, which have taken an increasing share due to multipack sales of items such as countlines. Confectionery is bought by the vast majority of UK consumers, although sales of certain items tend to be bought predominantly by females, especially within the chocolate sector. Children also comprise a major target market - data shows that confectionery purchases tend to rise if there are children in the household. The market has been one of the main beneficiaries of the general rise in the spending power of children within the UK.

The confectionery market is dominated by three large companies, all of which are active in overseas markets and have wide product portfolios. Cadbury Schweppes PLC, Nestlé Holdings (UK) PLC and Mars UK Ltd all own a number of well-established brands in the chocolate and sugar sectors (which account for a significant percentage of sales). Many of these brands have high advertising budgets and a number have been extended using limited edition flavours and new packaging formats. A comparatively small number of brands account for a relatively high level of confectionery sales. There are also a number of smaller companies in the industry, many of which target particular niche markets - such as premium confectionery.

Growth will be strongest in the sugar confectionery sector, which will steadily increase its share of the market. The chocolate sector is likely to benefit from the trend towards gift-giving and sharing among others, which will increase sales of items such as chocolate assortments. The major players are forecast to increase their global presence even further.

More Information

  Denotes a required field.