The Brazilian confectionery market has been forecast to increase at a compound annual growth rate (CAGR) of 5.6% over the next five years, increasing from a value of BRL 24 billion at the start of 2012, to hit a market value of approximately BRL 32 billion by 2017.
Over the past five years, the confectionery market has shown fast revenue growth against stable growth for sales volume. Apart from raw material price increases, in sugar in particular, the market was also boosted by better product offerings.
Higher quality and more expensive sugar confectionery and gum products have been developed -- which, coupled with increasing income from Brazilian consumers and a desire for innovation -- have really boosted the market.
Impulse and indulgence products were marked by the trend towards specific benefits as well as healthier options during 2012. Many manufacturers of impulse and indulgence products began to offer products with reduced fat, sodium and sugar and some that offer other health benefits or premium positioning in line with recent trends in packaged food both in Brazil and worldwide.
In terms of categories, 'Chocolate' is forecast to continue as the largest sector in the industry, and will be valued at around BRL 14 billion by 2017.
At GBO level, Nestlé SA is the leading company in chocolate confectionery with a value share of 41.6% almost stable compared to the previous year. Owner of key brands such as Garoto, Especialidades and Alpino, the company has significantly invested in new products and merchandising activities in retail channels.
According to a recent report, 'The Future of the Confectionery Market in Brazil to 2017,' the second largest category, 'Sugar Confectionary' will be worth around BRL 13 billion by 2017. Despite this, the fastest growing category is suggested to be a third sector, 'Gum', which will grow at a CAGR growth rate of over 6% between 2012 and 2017.
Healthier options are expected to continue to drive growth within the Brazilian confectionery market through to 2017. Manufacturers will be challenged to make products that offer lower salt, fat and sugar as well as offer health benefits in order to deliver to actual consumer demand.
For more information on the Brazilian confectionery market, see the latest research: Confectionery Market Research
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