Confectionery is one of the most dynamic and innovative sectors in the UK food industry. There are two major sectors: chocolate confectionery, which accounted for 68.4% of sales in 1998, and sugar confectionery, which took the remaining 31.6%. Countline bars dominate chocolate confectionery sales, taking a 37% share by value, while in sugar confectionery, the main products are fruit sweets and mints, which together accounted for 57% of sales by value in 1998.

The confectionery market has continued to show healthy growth since 1993, with sales rising by 23.8% to £5.45bn in 1998. The strongest growth came from sugar confectionery, sales of which increased by 28%, compared with 22% for chocolate confectionery.

The expansion of the market can be attributed mainly to an increase in new product development, and high profile advertising and promotional activity by the leading manufacturers. Sales have also been boosted by the dramatic rise in impulse purchases, aided by snacking trends, while the growth of multipack sales in large grocery multiples has helped to stimulate home consumption.

The UK confectionery market is extremely concentrated, and is dominated by three main companies: Cadbury Schweppes, Nestlé and Mars, which together hold 62% of the market by value. All of these companies have a wide portfolio of brands, and are prominent in their respective market sectors. Both Nestlé's KitKat and Mars Bar claim supremacy in the chocolate countlines sector, while Cadbury is the leading brand in boxed chocolates and blocks.

The past year has seen an increase in new product activity - especially in the chocolate sector, where manufacturers have continued to segment the market, targeting specific consumer groups. Cadbury's Marble, for example, is aimed at women, while Nestlé's Ventura is designed for the children's market. An interesting new product was Nestlé's Pretzel Flipz: chocolate-covered savoury pretzels, which are positioned as a snack product.

The future looks promising for UK confectionery manufacturers, with market growth set to continue into the new millennium. Key Note forecasts that total confectionery sales will grow by 23.1% between 1998 and the year 2003, to reach £6.7bn, with particularly strong performance from the sugar confectionery sector.

Executive Summary taken from 'Confectionery' by Key Note Ltd, price £375, to order your copy click here.

Table of Contents

Executive Summary 1
1. Market Definition 2
MARKET POSITION 2
Table 1: Consumer Expenditure on Confectionery Products as a Proportion of Total Food Expenditure (£m and %), 1994-1999 2
MARKET SECTORS 2
Chocolate Confectionery 3
Countlines 3
Boxed Chocolates 3
Blocks/Moulded 3
Bite Size 3
Other 3
Sugar Confectionery 4
Fruit Sweets 4
Mints 4
Chewing Gum 4
Traditional Sweets 4
Medicated Confectionery 4
MARKET TRENDS 4
Eating Patterns 4
Table 2: Estimated Average Household Food Consumption (grams per person per week), 1997-1999 5
Social and Economic Changes 5
New Products 6
Gesture Gifting 6
2. Market Size 7
the total Market 7
Table 3: The UK Confectionery Market by Retail Sales (£m at rsp and %), 1994-1999 7
BY MARKET SECTOR 8
Chocolate Confectionery 8
Countlines 8
Boxed Chocolates 8
Blocks/Moulded 9
Bite Size 9
Other 9
Table 4: The UK Chocolate Confectionery Market by Sector by Value (£m at rsp and %), 1999 9
Sugar Confectionery 10
Fruit Sweets 10
Mints 10
Chewing Gum 10
Traditional Sweets 10
Medicated Confectionery 11
Table 5: The UK Sugar Confectionery Market by Sector by Value (£m at rsp and %), 1999 11
OVERSEAS TRADE 12
Exports and Imports 12
Table 6: Total Value of UK Imports and Exports of Confectionery (£m), 1999 12
Table 7: Major Export Markets Accounting for Chocolate and Sugar Confectionery Items (%), 1999 13
Global Consumption 14
3. Industry Background 15
RECENT HISTORY 15
INDUSTRY CONCENTRATION 15
Table 8: Number of Chocolate and Sugar Confectionery Manufacturers by Turnover Size (£000), 1999 16
DISTRIBUTION 16
Table 9: Retail Distribution of Confectionery Items (% share of market), 2000 17
TRADE ASSOCIATIONS 18
The Biscuit, Cake, Chocolate & Confectionery Alliance 18
Other Associations 18
4. Brands 19
INTRODUCTION 19
CHOCOLATE CONFECTIONERY 19
Table 10: Leading Chocolate Confectionery Brands from Major Companies, 1999 20
Table 11: Best-Selling UK Chocolate Confectionery Brands by Value (£m), 1999 21
SUGAR CONFECTIONERY 21
Table 12: Leading Sugar Confectionery Brands from Major Companies, 1999 22
Table 13: Best-Selling UK Sugar Confectionery Brands by Value (£m), 1999 23
BRAND PENETRATION 23
Table 14: Penetration of Leading Brands of Chocolate Bars (% of adults), 2000 23
Table 15: Penetration of the Top Five Chocolate Bar Brands by Age and Social Grade (% of adults), 2000 25
BRAND ACTIVITY 26
Cadbury Ltd 26
Trebor Bassett Ltd 26
Nestlé Holdings UK PLC 27
Mars UK Ltd 27
The Wrigley Company Ltd 28
Kraft Jacobs Suchard Ltd 28
Bendicks (Mayfair) Ltd 28
Leaf (UK) Ltd 28
Ferrero UK Ltd 29
Thorntons PLC 29
BRAND ADVERTISING 29
Table 16: Main Media Advertising Expenditure of Selected Companies on Confectionery (£000), Years to December 1998 and 1999 29
Table 17: Main Media Advertising Expenditure for the Top Confectionery Brands (£000), Year to December 1999 30
5. Competitor Analysis 31
THE MARKETPLACE 31
Table 18: Manufacturers' Shares of the UK Confectionery Market by Value (%), 1999 31
Table 19: Manufacturers' Shares of the UK Sugar Confectionery Market by Value (%), 1999 32
Table 20: Selected UK Confectionery Companies by Turnover (£m), 1998 and 1999 33
Cadbury Schweppes PLC 33
Financial Results 34
Nestlé Holdings (UK) PLC 34
Financial Results 34
Mars UK Ltd 35
Financial Results 35
Kraft Jacobs Suchard Ltd 35
Financial Results 36
The Wrigley Company Ltd 36
Financial Results 36
Thorntons PLC 36
Financial Results 37
Ferrero UK Ltd 37
Financial Results 37
Leaf (UK) Ltd 37
Financial Results 37
Swizzels Matlow Ltd 37
Financial Results 38
Bendicks (Mayfair) Ltd 38
Financial Results 38
ADVERTISING AND PROMOTION 38
Table 21: Main Media Advertising Expenditure on Confectionery by Sector (£000), Years to December 1998 and 1999 39
6. Strengths, Weaknesses, Opportunities and Threats 40
STRENGTHS 40
WEAKNESSES 40
OPPORTUNITIES 41
THREATS 41
7. Buying Behaviour 42
CONSUMER PENETRATION 42
Table 22: Purchasers of Confectionery (% of adults), 1996-1999 42
Purchases by Sex 43
Table 23: Purchasers of Confectionery by Sex (% of adults), 1999 43
Purchases by Age 44
Table 24: Purchasers of Confectionery by Age (% of adults), 1999 44
Purchases by Social Grade 45
Table 25: Purchasers of Confectionery by Social Grade (% of adults), 1999 45
Presence of Children 46
Table 26: Purchasers of Confectionery According to Presence of Children (% of adults), 1999 46
SPENDING POWER OF CHILDREN 46
Table 27: Most Popular Purchases by Youngsters (%), 1997-1999 47
8. Outside Suppliers to the Industry 48
INRODUCTION 48
FOOD INGREDIENTS 48
FOOD PROCESSING MACHINERY 48
PACKAGING 49
9. Current Issues 50
BRAND RATIONALISATION 50
PRICE MARKING 50
HEALTH FEARS 50
Genetically Modified Foods 51
TOYS IN CHOCOLATES 51
EU CHOCOLATE DIRECTIVE 51
10. Forecasts 52
FUTURE MARKET DEVELOPMENTS 52
Demographic and Social Trends 52
Table 28: Age Profile of the UK Population (000), 1996, 2001 and 2006 52
Chocolate Confectionery 52
Sugar Confectionery 53
The Grocery Trade 53
Globalisation 53
FORECASTS 2000 TO 2004 54
Table 29: The Forecast UK Confectionery Market at Current Prices (£m at rsp), 2000-2004 54
11. Market Growth 55
Figure 1: The UK Confectionery Market by Value (£m at rsp), 1994-2004 55
12. Company Profiles 56
Cadbury Schweppes PLC 57
Mars UK Ltd 59
Nestlé Holdings (UK) PLC 61
13. Company Financials 63
14. Further Sources 65
Associations 65
Periodicals 66
Directories 67
General Sources 67
Bonnier Information Sources 68
Government Publications 69
Other Sources 70
Understanding TGI Data 72
Number, Profile, Penetration 72
Social Grade 73
Standard Region 73
Key Note Research 74
The Key Note Range of Reports 75

Executive Summary taken from 'Confectionery' by Key Note Ltd, to order your copy click here.