2. 2
Definition
• Sugar confectionery:
• Fruit soft – this includes pastilles, gums, jellies and chews.
• Other flavours – this includes liquorice, marshmallows, fudge, toffee,
caramels, nougat, Turkish Delight, Halva and others, such as éclairs and
marzipan.
• Mints – this includes regular mints and breath fresheners.
• Hard – this includes boiled sweets and lollipops.
• Functional – this includes medicated and energy giving products.
• Other – this includes mixed assortments and other sugar confectionery.
• Gum confectionery consists of regular chewing gum, sugar-free chewing
gum and bubble gum
4. 4
Market Overview
• Pick the highlights of how the market is performing
1. The wine market is expected to grow continuously, at a double-digit rate
2. Retail consumption has exceeded non-retail, which means retail distribution
becomes increasingly important for businesses to expand
3. A highly fragmented market, meaning companies need to win with brands
4. Imports have a strong growth momentum and multi-channel presence will help
brands to reach more wine enthusiasts
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Sugar confectionary market faces slowing growth
• Total market value growth is slowing, having achieved CAGR of only 13.7% between 2009 and 2013,
slower than for competing snack markets.
• Total market volume growth was even slower, at only 9.7% CAGR, indicating mounting competitive
pressure and a shift towards consumers purchasing more higher priced products.
• Competitive pressure is mounting both within the market, and from other competing snack sectors
such as chocolate confectionary and salty snacks.
Total sugar confectionary and chewing gum historical and forecast market value, 2009-19
Source: NBS/Company Information/Mintel Estimations
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Source:NBS/Company Information/Mintel Estimations
Sugar confectionary sees revival in value share
• Sugar confectionary has recently overtaken chewing gum in value growth thanks to consumers trading-up to
more expensive products.
• The market is shifting away from sheer quantity of sales, and more towards higher quality and value.
• Focus is now on what added-value features candy consumers are willing to pay more for.
Total sugar confectionary and chewing gum market value share by broad category, 2010-14
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What does it mean?
A slowing market growth, and highly fragmented
competition means candy makers must focus on
differentiating through selling more innovative,
value-added products.
Competition from chocolates and salty snacks
means sugar confectionary can no longer just be
an indulgence, but must also supply other
benefits to consumers.
Online retail and social media marketing have
barely begun to be explored, but offers wider
consumer reach and the potential to improve
operating margins.
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The Consumer
• Give a summary of key consumer insights
1. Sugar confectionary products face more consumer eating less, compared to
other snack sectors seeing more consumers eating more.
2. More consumers make deliberate purchases than impulse buys.
3. Celebrations and festivals are still key purchasing occasions, with potential for
new innovation.
4. Consumers are willing to pay more for natural ingredients and functional benefits
in their sugar confectionaries.
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Source: QQSurvey/Mintel
Sugar confectionary facing challenge from other snack sectors
• A key reason for slowing market growth is that significant numbers of consumers are eating more other types of
snacks and less sugar confectionary.
• The challenge for the industry is to make their products more of a first choice snack, compared with other
products.
Consumption of confectionery versus other snacks, September 2014
Note*: Eg jerky, pork scratching, dried fish slices.
Base: 3,000 internet users aged 20-49
Compared to 6 months ago, which of the following types of confectionery/snacks
would you say that you are eating more, less or about the same?
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Source: QQSurvey/Mintel
Deliberate purchasing dominates, but impulse still important
• Deliberate purchases for
self/family consumption
focus on functionality.
• Deliberate purchases for
gifting focus on social
celebrations and festivals.
• Impulse purchases are
stronger where young
children are present,
indicating significant
“pester power”.
Reason for confectionery purchase, September 2014
Base: 3,000 internet users aged 20-49
Thinking about purchasing sugar and gum confectionery in the last 6 months, for which of
the following reasons, if any, have you bought them?
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Source: QQSurvey/Mintel
Individually-wrapped assortments highly favoured
• Assorted flavours and
individually wrapped are
the two most considered
products for both gifting
and self-consumption.
• For individual
consumption, people
more likely to buy single
flavour packs
• There is a strong
distinction between the
gifting and self-
consumption motives.
Types of sugar confectionery products bought for yourself/family or gifting,
September 2014
Base: 2,917 internet users aged 20-49 who have
purchased sugar/gum confectionery in the last 6
months
Which of the following types of sugar confectionery products (chewing gum and bubble gum
excluded) have you bought most often in the last 6 months for yourself/family?
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Source: QQSurvey/Mintel
Festivals and celebrations key selling occasions
• 45% of consumers bought
sugar confectionary gifts
during festivals,
especially people in their
30s & 40s.
• Other important gifting
occasions were to express
gratitude (38%) and as
house warming gifts
(36%).
• Men are more likely than
women to purchase as
dating gift or during
Valentine’s day, typically
men in their 20s.
Occasion of sugar confectionery gifting, September 2014
Base: 2,420 internet users aged 20-49 who have
purchased sugar/gum confectionery for gifting in
the last 6 months
Thinking about buying sugar confectionery (chewing gum and bubble gum excluded) as a
gift, for which of the following occasions, if any, have you bought sweets in the last 6
months?
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Source: QQSurvey/Mintel
What consumers will pay more for
• 48% of people agreed
natural ingredients are
worth paying more for,
especially people in their
40s.
• Men in their 20s are those
most likely to spend more
on candies offering
additional health benefits,
such as added vitamins or
a throat soothing
function.
Elements in sugar confectionery that worth premium price, September 2014
Base: 2,917 internet users aged 20-49 who have
purchased sugar/gum confectionery in the last 6
months
Thinking about buying sugar confectionery for you or your family, which of the following
factors, if any, are you willing to pay more for? Please select up to 3 options for each type.
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Source: QQSurvey/Mintel
Attitudes towards sugar and gum confectionary
• Lack of additives, and
addition of natural
ingredients key product
features sought.
• More products aimed at
specific consumer
segments.
• More new and interesting
flavours.
• Opportunity for hand-
made, premium candies.
• Cannot ignore the
potential of selling online.
Statements about sugar confectionery, September 2014
Base: 2,917 internet users aged 20-49 who have
purchased sugar/gum confectionery in the last 6
months
Thinking about sugar confectionery, which of the following statements, if any, do you agree with?
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What does it mean?
On the product side, consumers want more
natural ingredients and functional benefits for
themselves, and more gift packs for festivals and
celebrations.
Products should diversify to reflect diverse
consumer needs, and there are potential
opportunities in individualised and artisanal
candies.
Developing more diverse and individualised
products requires candy makers to sell through
the currently under-utilised online channels.
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Who’s Innovating?
• An increasing number of products are being launched, targeted at
children, boasting nutritional ingredients.
• Very few products are aimed at a female market, and most of those are
aimed at girls, indicating potential for products aimed at adult women.
• Nutritional and functional ingredients could also be used to target older
consumers, and their health needs.
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Some products already targeting specific consumer segments
Qifeng fruit candy with dietary fibre
features a popular Doraemon cartoon
character, is aimed at children aged 5-12,
and also claims to contain no additives or
preservatives.
Haimazhuangyuan candy is specifically
targeted at postnatal women, and has
been QS certified. This product is one of
only few targeted specifically at adult
women.
Meiji Xylish lemon and mint flavoured
sugar-free chewing gum with xylitol is
now available in a pack that comes with
environmentally friendly wrapping paper
for disposing of gum.
All eyes on children Target the women Emerging ethics
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What does it mean?
The emergence of environmentally-friendly
packaging is a sign of growing consumer
awareness of environmental issues, and
manufacturers could differentiate by leading in
this still new area.
Functional health ingredients show potential for
development of new products aimed at specific
target groups, such as women, older people or
smokers trying to give up cigarettes.
A few product packs are now showing QR code
links to online social media sites, indicating
more companies are beginning to explore
developing consumer engagement this way.
