Confectionery is one of the most dynamic and innovative sectors in the UK food industry. There are two major sectors: chocolate confectionery, which accounted for 68.4% of sales in 1998, and sugar confectionery, which took the remaining 31.6%. Countline bars dominate chocolate confectionery sales, taking a 37% share by value, while in sugar confectionery, the main products are fruit sweets and mints, which together accounted for 57% of sales by value in 1998.
The confectionery market has continued to show healthy growth since 1993, with sales rising by 23.8% to £5.45bn in 1998. The strongest growth came from sugar confectionery, sales of which increased by 28%, compared with 22% for chocolate confectionery.
The expansion of the market can be attributed mainly to an increase in new product development, and high profile advertising and promotional activity by the leading manufacturers. Sales have also been boosted by the dramatic rise in impulse purchases, aided by snacking trends, while the growth of multipack sales in large grocery multiples has helped to stimulate home consumption.
The UK confectionery market is extremely concentrated, and is dominated by three main companies: Cadbury Schweppes, Nestlé and Mars, which together hold 62% of the market by value. All of these companies have a wide portfolio of brands, and are prominent in their respective market sectors. Both Nestlé’s KitKat and Mars Bar claim supremacy in the chocolate countlines sector, while Cadbury is the leading brand in boxed chocolates and blocks.
The past year has seen an increase in new product activity – especially in the chocolate sector, where manufacturers have continued to segment the market, targeting specific consumer groups. Cadbury’s Marble, for example, is aimed at women, while Nestlé’s Ventura is designed for the children’s market. An interesting new product was Nestlé’s Pretzel Flipz: chocolate-covered savoury pretzels, which are positioned as a snack product.
The future looks promising for UK confectionery manufacturers, with market growth set to continue into the new millennium. Key Note forecasts that total confectionery sales will grow by 23.1% between 1998 and the year 2003, to reach £6.7bn, with particularly strong performance from the sugar confectionery sector.
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By GlobalDataExecutive Summary taken from ‘Confectionery’ by Key Note Ltd, price £375, to order your copy click here.
Table of Contents
Executive Summary | 1 |
1. Market Definition | 2 |
MARKET POSITION | 2 |
Table 1: Consumer Expenditure on Confectionery Products as a Proportion of Total Food Expenditure (£m and %), 1994-1999 | 2 |
MARKET SECTORS | 2 |
Chocolate Confectionery | 3 |
Countlines | 3 |
Boxed Chocolates | 3 |
Blocks/Moulded | 3 |
Bite Size | 3 |
Other | 3 |
Sugar Confectionery | 4 |
Fruit Sweets | 4 |
Mints | 4 |
Chewing Gum | 4 |
Traditional Sweets | 4 |
Medicated Confectionery | 4 |
MARKET TRENDS | 4 |
Eating Patterns | 4 |
Table 2: Estimated Average Household Food Consumption (grams per person per week), 1997-1999 | 5 |
Social and Economic Changes | 5 |
New Products | 6 |
Gesture Gifting | 6 |
2. Market Size | 7 |
the total Market | 7 |
Table 3: The UK Confectionery Market by Retail Sales (£m at rsp and %), 1994-1999 | 7 |
BY MARKET SECTOR | 8 |
Chocolate Confectionery | 8 |
Countlines | 8 |
Boxed Chocolates | 8 |
Blocks/Moulded | 9 |
Bite Size | 9 |
Other | 9 |
Table 4: The UK Chocolate Confectionery Market by Sector by Value (£m at rsp and %), 1999 | 9 |
Sugar Confectionery | 10 |
Fruit Sweets | 10 |
Mints | 10 |
Chewing Gum | 10 |
Traditional Sweets | 10 |
Medicated Confectionery | 11 |
Table 5: The UK Sugar Confectionery Market by Sector by Value (£m at rsp and %), 1999 | 11 |
OVERSEAS TRADE | 12 |
Exports and Imports | 12 |
Table 6: Total Value of UK Imports and Exports of Confectionery (£m), 1999 | 12 |
Table 7: Major Export Markets Accounting for Chocolate and Sugar Confectionery Items (%), 1999 | 13 |
Global Consumption | 14 |
3. Industry Background | 15 |
RECENT HISTORY | 15 |
INDUSTRY CONCENTRATION | 15 |
Table 8: Number of Chocolate and Sugar Confectionery Manufacturers by Turnover Size (£000), 1999 | 16 |
DISTRIBUTION | 16 |
Table 9: Retail Distribution of Confectionery Items (% share of market), 2000 | 17 |
TRADE ASSOCIATIONS | 18 |
The Biscuit, Cake, Chocolate & Confectionery Alliance | 18 |
Other Associations | 18 |
4. Brands | 19 |
INTRODUCTION | 19 |
CHOCOLATE CONFECTIONERY | 19 |
Table 10: Leading Chocolate Confectionery Brands from Major Companies, 1999 | 20 |
Table 11: Best-Selling UK Chocolate Confectionery Brands by Value (£m), 1999 | 21 |
SUGAR CONFECTIONERY | 21 |
Table 12: Leading Sugar Confectionery Brands from Major Companies, 1999 | 22 |
Table 13: Best-Selling UK Sugar Confectionery Brands by Value (£m), 1999 | 23 |
BRAND PENETRATION | 23 |
Table 14: Penetration of Leading Brands of Chocolate Bars (% of adults), 2000 | 23 |
Table 15: Penetration of the Top Five Chocolate Bar Brands by Age and Social Grade (% of adults), 2000 | 25 |
BRAND ACTIVITY | 26 |
Cadbury Ltd | 26 |
Trebor Bassett Ltd | 26 |
Nestlé Holdings UK PLC | 27 |
Mars UK Ltd | 27 |
The Wrigley Company Ltd | 28 |
Kraft Jacobs Suchard Ltd | 28 |
Bendicks (Mayfair) Ltd | 28 |
Leaf (UK) Ltd | 28 |
Ferrero UK Ltd | 29 |
Thorntons PLC | 29 |
BRAND ADVERTISING | 29 |
Table 16: Main Media Advertising Expenditure of Selected Companies on Confectionery (£000), Years to December 1998 and 1999 | 29 |
Table 17: Main Media Advertising Expenditure for the Top Confectionery Brands (£000), Year to December 1999 | 30 |
5. Competitor Analysis | 31 |
THE MARKETPLACE | 31 |
Table 18: Manufacturers’ Shares of the UK Confectionery Market by Value (%), 1999 | 31 |
Table 19: Manufacturers’ Shares of the UK Sugar Confectionery Market by Value (%), 1999 | 32 |
Table 20: Selected UK Confectionery Companies by Turnover (£m), 1998 and 1999 | 33 |
Cadbury Schweppes PLC | 33 |
Financial Results | 34 |
Nestlé Holdings (UK) PLC | 34 |
Financial Results | 34 |
Mars UK Ltd | 35 |
Financial Results | 35 |
Kraft Jacobs Suchard Ltd | 35 |
Financial Results | 36 |
The Wrigley Company Ltd | 36 |
Financial Results | 36 |
Thorntons PLC | 36 |
Financial Results | 37 |
Ferrero UK Ltd | 37 |
Financial Results | 37 |
Leaf (UK) Ltd | 37 |
Financial Results | 37 |
Swizzels Matlow Ltd | 37 |
Financial Results | 38 |
Bendicks (Mayfair) Ltd | 38 |
Financial Results | 38 |
ADVERTISING AND PROMOTION | 38 |
Table 21: Main Media Advertising Expenditure on Confectionery by Sector (£000), Years to December 1998 and 1999 | 39 |
6. Strengths, Weaknesses, Opportunities and Threats | 40 |
STRENGTHS | 40 |
WEAKNESSES | 40 |
OPPORTUNITIES | 41 |
THREATS | 41 |
7. Buying Behaviour | 42 |
CONSUMER PENETRATION | 42 |
Table 22: Purchasers of Confectionery (% of adults), 1996-1999 | 42 |
Purchases by Sex | 43 |
Table 23: Purchasers of Confectionery by Sex (% of adults), 1999 | 43 |
Purchases by Age | 44 |
Table 24: Purchasers of Confectionery by Age (% of adults), 1999 | 44 |
Purchases by Social Grade | 45 |
Table 25: Purchasers of Confectionery by Social Grade (% of adults), 1999 | 45 |
Presence of Children | 46 |
Table 26: Purchasers of Confectionery According to Presence of Children (% of adults), 1999 | 46 |
SPENDING POWER OF CHILDREN | 46 |
Table 27: Most Popular Purchases by Youngsters (%), 1997-1999 | 47 |
8. Outside Suppliers to the Industry | 48 |
INRODUCTION | 48 |
FOOD INGREDIENTS | 48 |
FOOD PROCESSING MACHINERY | 48 |
PACKAGING | 49 |
9. Current Issues | 50 |
BRAND RATIONALISATION | 50 |
PRICE MARKING | 50 |
HEALTH FEARS | 50 |
Genetically Modified Foods | 51 |
TOYS IN CHOCOLATES | 51 |
EU CHOCOLATE DIRECTIVE | 51 |
10. Forecasts | 52 |
FUTURE MARKET DEVELOPMENTS | 52 |
Demographic and Social Trends | 52 |
Table 28: Age Profile of the UK Population (000), 1996, 2001 and 2006 | 52 |
Chocolate Confectionery | 52 |
Sugar Confectionery | 53 |
The Grocery Trade | 53 |
Globalisation | 53 |
FORECASTS 2000 TO 2004 | 54 |
Table 29: The Forecast UK Confectionery Market at Current Prices (£m at rsp), 2000-2004 | 54 |
11. Market Growth | 55 |
Figure 1: The UK Confectionery Market by Value (£m at rsp), 1994-2004 | 55 |
12. Company Profiles | 56 |
Cadbury Schweppes PLC | 57 |
Mars UK Ltd | 59 |
Nestlé Holdings (UK) PLC | 61 |
13. Company Financials | 63 |
14. Further Sources | 65 |
Associations | 65 |
Periodicals | 66 |
Directories | 67 |
General Sources | 67 |
Bonnier Information Sources | 68 |
Government Publications | 69 |
Other Sources | 70 |
Understanding TGI Data | 72 |
Number, Profile, Penetration | 72 |
Social Grade | 73 |
Standard Region | 73 |
Key Note Research | 74 |
The Key Note Range of Reports | 75 |
Executive Summary taken from ‘Confectionery’ by Key Note Ltd, to order your copy click here.