The confectionery market is traditionally divided into candy, chocolate, pastilles and chewing gum. Cloetta is active in all these categories, as well as in nuts.
Cloetta’s main markets are Sweden, Finland, the Netherlands, Denmark, Norway, Germany and the UK. The total market for confectionery in our main markets amounts to approximately SEK 273bn (269).
The confectionery market is relatively insensitive to economic fluctuations and shows stable growth that is driven primarily by population trends and price increases. Market recessions affect us mainly through general price pressure from the retail trade and increased competition from the trade’s own private labels. However, private labels account for a relatively small share of confectionery compared to other grocery products. Furthermore, the confectionary market may also be temporarily impacted by events such as a global pandemic. Since growth takes place mostly through the development of existing strong confectionery brands, the continuous launch of new flavours and products is a key success factor. In terms of value, candy including pastilles accounts for 30 per cent, chocolate for around 62 per cent and chewing gum for around 8 per cent of the total market in Cloetta’s main markets.
The global market for confectionery is dominated by international companies like Mars Wrigley, Mondelez, Nestlé, Ferrero, Perfetti, Haribo and Lindt & Sprüngli. However, in the local markets these meet tough opposition from players with locally established brands such as Cloetta, Fazer, Orkla and Toms. No player has a strong position across all European markets. Consolidation of the confectionery industry is taking place gradually. The industry as such has a long history and the pace of technological product innovation is low.
Pick & mix
The pick & mix category has a very strong position in the Nordic countries and accounts for a high share of the total confectionery consumption, while the consumption of pick & mix is considerably lower in Central Europe where packaged candy and chocolate have a stronger position. In Sweden, pick & mix normally accounts for 30 per cent of the total confectionery market, while in the other Nordic countries it accounts for 5 to 15 per cent. Pick & mix candy as a market is growing faster than packaged products in most Nordic countries. However in 2020 due to the pandemic situation and lockdowns, the balance has shifted with pick & mix losing market share.
The nut market
Cloetta is also active in the nut market via the brands Nutisal and Parrots. The total nut market in the Nordic region is worth around SEK 5bn, and the private labels of the retail trade account for approximately one third of the total market. In Cloetta’s main markets, the nut market is experiencing annual growth of 1–2 per cent in volume. However, in the past few years the growth has been around 4 per cent a year due to price increases and a shift to the premium product category, and more recently due to Covid-19 and the impact of the pandemic.