Market overview

The confectionery market is traditionally divided into candy, chocolate, pastilles and chewing gum. Cloetta is active in all these categories, as well as nuts.

Cloetta’s main markets are Sweden, Finland, the Netherlands, Denmark,Norway, the UK and Germany. The total market for confectionery in Cloetta’s main markets amounts to approximately SEK 228bn.

Mature market

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 are affecting Cloetta 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.

Because growth takes places almost exclusively 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 accounts for around 24 per cent, chocolate for around 54 per cent, pastilles for around 13 per cent and chewing gum for around 9 per cent of the total market in Cloetta’s home markets.

Competitive market

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 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 total confectionery consumption, while consumption of pick & mix is considerably lower in Central Europe where packaged candy and chocolate have a stronger position. In Sweden, pick & mix 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.

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.

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