Food and Beverage Business
Consumer

Achieving Sweet Success: A Spotlight on Sugar Confectionery

Achieving Sweet Success: A Spotlight on Sugar Confectionery Achieving, confectionery, In focus, spotlight., success., sugar, Sugar confectionery, sweet, Sweet success Food and Beverage Business

The total market has experienced steady growth, with a 10.3% increase in the past year. Gums and chews specifically have shown significant growth, valued at £653m and growing at a rate of 13.5% compared to the previous year. This growth is particularly impressive considering the challenges posed by HFSS restrictions, rising cost-of-living expenses, and increasing commodity prices.

The introduction of HFSS restrictions in October has placed limitations on where products can be promoted in-store. The second wave of restrictions coming this October will further restrict volume promotions on HFSS products. However, these restrictions have had less impact on sales than anticipated. Mondelēz International, for example, has seen a minimal effect on sales, with only about 40% of their UK sales being impulse buys. As consumers adjust to the new rules, the company expects volume growth to return.

Consumers are gravitating towards brands they trust, which has helped drive growth in the confectionery category. Recognizable brands have gained market share in the chocolate and candy categories compared to own-label products. While healthier options have gained popularity, there is still demand for traditional sweets and treats. Price remains a crucial factor for shoppers, with £1 PMPs being a must-stock item for 82% of retailers.

The pandemic has also influenced consumer behavior, leading to an increase in large-format, at-home sharing packs. Multi-packs provide a cost-effective and convenient way for consumers to purchase their favorite treats in advance. Vegan sugar confectionery has also gained traction as more consumers embrace vegan alternatives. Offering a variety of snacking choices, including vegan options, can attract and retain customers.

To drive growth in the sugar confectionery category, retailers should consider merchandising strategies such as placing popular SKUs at eye level, promoting newly launched products, and utilizing secondary sitings by the till. These tactics can increase visibility, awareness, and impulse purchases.

In conclusion, the sugar confectionery market continues to show resilience and growth despite challenges such as HFSS restrictions and rising costs. Consumer preferences for recognizable brands, healthier options, and value for money contribute to the market’s success. By understanding and catering to these preferences, retailers can drive growth in the category.

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