Europeans still have a sweet tooth

Despite pessimistic claims to the contrary, consumers in Europe continue to have a big appetite for sweets. Confectionery turnover in the seven major markets of Belgium, Germany, the UK, France, Italy, the Netherlands, and Spain alone totalled more than €38 billion last year, an increase of 3.7%. These figures were obtained through a study conducted by ACNielsen for the period October 2006-September 2007 on behalf of the SG Sweets Global Network. The results were presented in Cologne during the run-up to the 38th International Sweets and Biscuits Fair (ISM).

The lion's share was eaten last year by British and German consumers, who accounted for 28% and 26% of total confectionery consumption, respectively. With expenditure of approximately €10.6 billion on chocolate, sugar confectionery, salty snacks and sweet baked goods, the UK just edged out Germany in the ACNielsen study.

It also appears that British consumers have yet to satisfy their hunger for sweets, as data collected by ACNielsen shows that citizens of the United Kingdom spent 4.7% more money on confectionery items in 2007 than in the previous year. In the meantime, the confectionery market in Germany remained stable at a high level last year. According to ACNielsen and industry and trade estimates, the domestic confectionery market in the country grew by only between 1% and 2%.

Spanish consumers are rapidly developing a sweet tooth, as confectionery sales in Spain rose 9.6% last year compared to 2006, while Belgian confectionery turnover increased by more than 6%. ACNielsen also reported average rates of growth in the Netherlands (3.7%) and France (3.2%), with Italians bringing up the rear with growth of just under 1%.

A parallel analysis of individual confectionery sales channels such as grocery stores, convenience stores and drugstores reveals that Europeans clearly prefer to purchase their sweets from traditional grocery stores. The latter succeeded in increasing confectionery sales by 4% last year in the seven countries examined, thereby enabling them to expand their share of the total confectionery business. Food trade sales channels are thus the key drivers of growth for the confectionery industry, as they dominate the European sweets market with a share of 82.1%.

The performance of convenience stores (filling stations, kiosks, snack shops, bakeries etc.) and drugstores varies greatly throughout Europe. Drugstores, for example, have a European-wide market share for confectionery sales of only 1.6% - but in Germany they have become established as key sales outlets for confectionery articles in recent years. During the period addressed by the study, drugstores increased their sales of confectionery items by 6.8% to more than €500 million, and now account for 5.3% of total confectionery turnover in Germany. At the same time, convenience stores saw confectionery sales decline by 1.8%; such outlets now have a market share of 6.1%.

By contrast, consumers in the UK, Spain, and Italy like to purchase their sweets at small stores, kiosks, and filling stations. In fact, the convenience store sector in the UK now accounts for 34.6% of total confectionery turnover in the country, and also has a 52.7% market share for sugar confectionery. Such stores also represent a rather important confectionery sales channel in Spain (market share: 20.4%) and Italy (18.1%).

Source: Sweets Global Network
The International Sweets and Biscuits Fair (ISM) is taking place in Cologne for the 38th time. With 1,675 suppliers from 70 countries, the most important fair for the confectionery sector has set a new record regarding its number of exhibitors. ISM is open to trade visitors only, from Sunday, 27th until Wednesday, 30th January.

The organisers of ISM are Koelnmesse and the International Sweets and Biscuits Fair Working Group (AISM), which is the conceptual sponsor.

Information on ISM:
www.ism-cologne.de (www.ism-cologne.com)

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