Cologne — More than half of the U.S. confectionery industry’s global growth was in developing markets between 2008 and 2013, according to Matt Tripodi, client development manager, government & trade relations for Euromonitor International Ltd.
Overall, the U.S. candy business increased its share of the global market more than six percent this past year, he said at the NCA’s annual Beer & Brats event during ISM, adding that finished product sales increased 13 percent internationally.
“Put in perspective, U.S. agriculture only grew one percent,” Tripodi said.
He noted U.S. candy growth is expected to continue, with the chocolate segment anticipated to have a compound annual growth rate (CAGR) up to 2018 of 2.9 percent internationally, while sugar confectionery is expected to have a CAGR of 1.5 percent for the same period.
In the non-chocolate market, chewy candy is anticipated to become the second-largest subsegment behind hard candy and will outpace the overall non-chocolate segment, with anticipated growth of 2.7 percent up to 2018, according to Tripodi.
“Chew candy will see the highest growth thanks to innovations in flavors and taste preferences in numerous Asian countries,” he explained.
While it is expected that bubble gum will continue to be challenged because of health concerns of parents, the overall gum segment is forecasted to grow 2.9 percent, compounded annually, with innovations in flavors, pack sizes and value-added benefits, such as teeth whitening, driving the market, Tripodi reported.
To capitalize on growth projections, he says manufacturer’s should take advantage of the NCA’s resources, including in-depth market analysis reports covering the 26 hottest international markets as identified by Euromonitor.
“The global confectionery store is getting bigger all the time and shelf space is filling up — does it matter where your customer is,” he rhetorically asked.
For more information on market-specific reports, visit candyusa.com/internationalbusiness or contact Karen Horan, NCA senior director of international business development, at firstname.lastname@example.org.