Confectionary: Key market research findings
- Vendors are tapping into social media platforms for better consumer engagement
- Increasing demand for premium products
- Key vendors—Chocoladefabriken Lindt & Spruengli, Ferrero, Hershey’s, Mars, Mondelēz, Perfetti Van Melle, and Wrigley
Technavio’s market research analysts estimate the confectionery market in the US to grow at a CAGR of almost 2%, in terms of revenue, between 2016 and 2020. Promotional activities and social media strategies adopted by manufacturers and vendors are the primary drivers for the market. Chocolate manufacturers in the US are increasingly using social media platforms for better consumer engagement owing to the rapid rise in the number of social media users. During 2015, the market was dominated by the hypermarkets and supermarkets channels of distribution by accounting for almost 38% of the overall market share. This segment of the market is thriving due to a high level of manufacturer dependence on the shelf space of these channels.
The new market research report from Technavio presents a breakdown and analysis of the confectionery segments by product.
“An increase in the demand for premium products is the latest trend in the market. The demand for premium products is on the rise as consumers associate them with higher quality, fine flavors, a specific origin, and ethically sourced ingredients. Confectionary vendors have started coming up with premium products as luxury products have been touted as a growth area for confectionery products in the US. Manufacturers are experimenting with new ingredients and flavors and inventing new products with lower levels of sugar and fat that are targeted at health-conscious consumers,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
In 2015, the chocolate segment dominated the confectionery market in the US by accounting for more than 61% of the market share. Factors such as continuous product innovations by vendors in the segment and the effect of the rising price of chocolates are fueling the growth of the chocolate market in the US. The rising demand for dark and premium chocolates along with the launch of new products, especially during holiday seasons, are likely to propel growth in the market by 2020.
The key vendors in the confectionery market in the US include Chocoladefabriken Lindt & Spruengli, Ferrero, Hershey’s, Mars, Mondelēz, Perfetti Van Melle, and Wrigley. Owing to the presence of numerous small and large vendors, this market is highly fragmented and intensely competitive. Vendor performance in this market entirely depends on consumer demands and their spending pattern. Also, vendors have also started to determine effective techniques to distinguish their product and service offerings from the competition and are regularly competing with other vendors on the basis of product price, quality, innovation, and distribution to gain maximum market traction by 2020.
A more detailed analysis is available in the Technavio report, Confectionary Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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