German confectionery market led by Ferrero, Mars and Kraft Foods

Press Release   •   Jul 24, 2013 08:49 BST

The German confectionery market has been forecast to increase at a compound annual growth rate (CAGR) of 1.7% over the next five years, increasing from a value of EUR 9.6 billion at the start of 2012, to hit a total of almost EUR 10.5 billion by 2017.

Snacking has become a major trend, due to the changing eating habits of consumers. Today's lifestyles, especially in cities and towns, are becoming increasingly busy, which means that people have (or take) less time for proper meals. As a consequence, individuals enjoy several small snacks a day, which they consume during small breaks or on-the-go.

According to a recent report, 'The Future of the Confectionery Market in Germany to 2017,' in terms of categories, 'Chocolate' is forecast to continue as the largest sector in the industry, and will be valued at around EUR 7 billion by 2017.

The snacking trend had a considerable impact on chocolate confectionery. It particularly stimulated the positive growth of countlines, which are perceived as convenient snacks for a short break, or even on-the-go.

Ferrero, Mars Deutschland and Kraft Foods Deutschland continued to lead the German chocolate confectionery market in 2012, accounting for a 45% share of retail value sales. A number of new products were launched by the leading players in 2011 and 2012.

The second largest category, 'Sugar Confectionary' will be worth around EUR 2 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 2.1% between 2012 and 2017.

Substantial increases in the prices of raw materials and energy as well as stiff competition among food retailers negatively affected the results of the some 220 industrial manufacturers of German-made confectionery and snack items in 2012.

Companies found themselves increasingly squeezed between, what were in many cases, only a few raw material suppliers - particularly from the sugar industry - and the highly consolidated food retail sector. As it was often difficult to pass on price increases to food retailers, confectionery manufacturers had to bear most of the burden of higher raw material costs.

The high level of saturation, the declining population and the increasing health and wellness trend will limit the growth potential for German confectionery through to 2017. In addition, consumption within the German confectionery market may be limited over the next five years by the growing interest in reducing sugar consumption, particularly among children.

For more information on the German confectionery market, see the latest research: Confectionery Market Research

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