Published in Marketing
Healthy confectionery is better in Asia-Pacific

Rising disposable incomes and increasing health awareness across emerging countries in the Asia-Pacific (APAC) region are boosting the demand for functional products in the confectionery sector. As a result, manufacturers must position their products as healthy offering rather than just gourmet treats, says leading data and analytics company GlobalData.

The company’s report, ‘Opportunities in the Asia-Pacific Confectionery Sector, reveals that the market, which was valued at US$39.2bn in 2017, is expected to register the fastest growth across regions with a compound annual growth rate (CAGR) of 5.6% over the period 2017–2022.

Debakshi Sarkar, Consumer Analyst at GlobalData, says: “The growing popularity of natural ingredients, which are free from artificial flavors and preservatives, in food is boosting the demand for confectionery products. In addition, the sizeable proportion of young age consumers with adventurous palates is fuelling the growth for novel varieties of confectionery products in the region.”

Within APAC, China held the largest value share with 42%, followed by Japan (25.5%), India (10.1%) and Australia (7.1%) in 2017. India is expected to register the fastest value CAGR of 10.3%, followed by China with 6.7% during the review period.

In terms of categories, sugar confectionery accounted for the largest share with 43.3%, followed by chocolate (37.7%) during the same year.

Demand for these categories is driven by consumers seeking a gourmet treat after a busy day. This is also supported by GlobalData’s 2018 Q3 consumer survey, according to which 58% consumers across the Asia & Australasia region stated that they consume chocolate/sugar confectionery while relaxing at home.

The top three companies in the APAC confectionery sector accounted for 36.5% value share in 2017. Mars, Incorporated led with 14.4% value share, followed by Mondelez International, Inc at 12.8% and Lotte Co., Ltd. at 9.3% while private label products accounted for 2.5% share during the same year.

Sarkar concludes: “With the increasing health awareness levels among consumers, the confectionery sector is expected to witness a growing demand for functional chocolates which are high in nutritional value. Therefore, confectionery manufacturers must position their products as a healthy offering rather than just a gourmet treat, in order to cater to a wider consumer base.”

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