Consumers have recently been spending record amounts on confectionery and snacks. But is this due to the sharp increase in prices or were sweets particularly well received last year?
Despite the difficult economic situation, consumers have not lost their desire to snack and nibble. This emerges from a study by the market research company NielsenIQ, which was published on the occasion of the upcoming International Snack and Confectionery Fair (ISM) in Cologne. This was created on behalf of the industry association Sweets Global Network.
According to the research, consumers in Europe spent record amounts on confectionery and snacks between November 2022 and November 2023. At 99 billion euros, it was 13.6 percent more than a year earlier. This product group accounts for more than ten percent of all consumer goods.
The differences between the EU countries are large. In Poland, prices rose by 19 percent within the year, in Germany by 12.9 percent, and in Russia by 9.9 percent. Sales have not fallen despite the sharp price increases. According to NielsenIQ, sales volume increased by 0.7 percent to 10.1 million tons. While other consumer goods sectors have recently struggled with significant losses due to many consumers’ reluctance to purchase, according to the study, confectionery was in high demand and has proven to be crisis-resistant.
Drastically increased raw material prices
Nevertheless, the German confectionery industry is feeling the effects of economic development and inflation. The industry has had a difficult year, said the chairman of the Federal Association of the German Confectionery Industry (BDSI), Bastian Fassin. The more than 200 confectionery companies, which employ around 60,000 people, recorded an increase in sales in 2023 due to inflation.
Drastic cost increases for raw materials, energy, personnel and logistics as well as bureaucratic requirements are taking away the industry’s breathing space, says Fassin. He called on the federal government to improve the competitiveness of companies. Otherwise there is a risk of a market shake-out and a migration of production facilities. For the first time in years, the BDSI recorded a decline (-1 percent) in the amount of confectionery exported in 2023.
The industry is particularly troubled by the recent increase in costs. EU sugar was 72 percent more expensive last year than in 2022, cocoa butter increased by 52 percent, cocoa by 43 percent, starch by 42 percent. The industry is therefore not expecting an easy year in 2024 either. However, the change in consumer behavior does at least give us a little hope. “Consumers are dealing with nutrition and sustainability much more intensively than they did 20 or 30 years ago. This opens up a new field of products for us,” says Fassin.
The trend is towards healthy and sustainable snacking with natural ingredients, no additives and little or no sugar. Manufacturers are increasingly relying on fruit and vegetable snacks, energy bars and other products that are intended to replace solid meals. Trade visitors can see this for themselves from Sunday in Cologne at the International Confectionery Fair.
Around 1,400 exhibitors from 70 countries present their range of products and many unusual new products on 100,000 square meters such as mushroom fruit gums, sweet potato popcorn, chickpea and chocolate quinoa waffles, marshmallow fries and cocoa-free chocolate made from oats and sunflower seeds. The trade fair in Cologne lasts until January 31st.
Source: Stern
