Paper on Industry

In: Miscellaneous

Submitted By dobreb
Words 2515
Pages 11
The global confectionery market was valued at approximately $147bn in 2008, an increase of 3.2% over 2007. Business Insights forecasts that the global confectionery market will grow at a CAGR of 3.1% during 2008–13, to reach a total value of approximately $171bn in 2013. A shift in consumer preference towards premium chocolate and increasing consumption of healthy confectionery in matured markets, primarily the US and Europe, will drive industry value through 2013.
Chocolate represents the largest confectionery category in value terms, accounting for almost half of the global market in 2008. The dominance of the chocolate category in the confectionery industry has been driven by the growth in demand for dark chocolate due to its inherent health benefits. Business Insights anticipates that cereal bars will outperform all other categories of confectionery, growing at a CAGR 5.8% during
2008–13, led by the increasing demand for nutritional and fortified foods. An aging population will drive the development of functional confectionery, including satiety enhancing gums.
2005-2007: Through this period, Nestlé‟s predominantly mass-market confectionery portfolio under-performs the market, which is largely driven by premiumisation, a trend which is largely beneficial to premium chocolate manufacturers, such as Lind & Sprüngli and Ferrero.

Over 2005-2009, the largest gains in global confectionery share were made by Kraft Foods and Mars, by 10.7 percentage points (already including Cadbury) and 5.3 points, respectively. The rapid growth in value share was the result of the large-scale acquisitions both companies have made.( Kraft Foods' interest in Cadbury stems from the confectioner's broader exposure to international markets, particularly its strong position in emerging markets such as India.) Amongst the top 10 players in global confectionery, only…...

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