Overview:

This report profiles the leading players in the global confectionery industry. In this report the confectionery industry is categorized as follows:

• Chocolate: molded bars, boxed chocolate, chocolate countlines, novelties and chocolate straightlines;
• Sugar confectionery: caramels and toffees, hard boiled sweets, gums and jellies, medicated confectionery, regular mints, and power mints;
• Gum: sugar free gum, regular chewing gum, functional chewing gum and bubblegum;
• Cereal bars: sports and energy bars and other bars.

This report analyzes the global confectionery industry in terms of market size (estimated based on on-trade sales), key drivers and resistors, trends and competitive positioning of top 10 players in the global confectionery market. It includes profiles of the top 10 companies in the industry and also includes a brief summary of other major players. The current ranking evaluates confectionery companies based on their performance using the following intelligence metrics:

• Each company’s financial performance in the global confectionery market;
• Each company’s growth strategies and major acquisitions and divestments in this market;
• Business-related strengths and weaknesses of these companies, and insights into the opportunities and threats facing them.

Key features of this report

• Market dynamics of the global confectionery market during the period 2008-13.
• Key market drivers and resistors.
• Trends of the global confectionery market.
• Identification of the top 10 players in the global confectionery market .
• Performance of top 10 confectionery companies during 2004–08.

Scope of this report

• Learn from the strategies of the global confectionery companies to target future growth markets effectively, avoid their mistakes, replicate their successes and learn of the threats they face.
• Benchmark your performance against the leading confectionery companies by comprehending their strategies.
• Understand the major issues affecting the global confectionery market.

Key Market Issues

• Rising prices of cocoa: Significant increase in the price of cocoa during 2004–08 due to slow down in cocoa beans production in Ivory Coast, Africa led by poor weather conditions and under-investment in the region has adversely affected the margins of the players in the industry.
• Article 13 health claim regulation: Increasing compliance requirements from regulatory authorities such as the European Food Safety Authority’s impending Article 13 health claim regulation mandating all functional claims on confectionery to be validated with scientific facts may restrict the scope of new product development.
• Health concerns: Negative health perception related to conventional confectioneries hinders the development of the industry.

Key findings from this report

• Business Insights forecasts that the global confectionery market will grow at a CAGR of 3.1% during 2008–13 to reach a total value of approximately $171bn in 2013.
• The dominance of chocolate category in the confectionery industry is primarily driven by the fact that it is usually sold at a higher price, whereas most forms of sugar confectionery are low-value items, particularly within the emerging markets.
• Depth in product portfolio, strong foothold in the US and Western European markets and acquisition of Wm. Wrigley Jr. (Wrigley) in 2008 have contributed to the dominant position of Mars in the global confectionery industry.
• Anti-trust concerns may force Nestlé to divest some brands in the UK market if it successfully acquires Cadbury.

Key questions answered

• What was the market size of the global confectionery industry by value and volume in 2008?
• What will be the estimated market size of the global confectionery industry during 2009-13?
• What are the trends in the global confectionery industry?
• Who are the top 10 players in the market?

The Top 10 Confectionery Companies

Executive summary

Industry overview

Mars

Nestlé

Cadbury

Ferrero Group (Ferrero)

Hershey

Kraft Foods

Perfetti Van Melle (Perfetti)

Lindt & Sprüngli (Lindt)

Meiji Holdings (Meiji Seika)

Lotte

Chapter 1 Introduction

What is the report about?

Methodology

Chapter 2 Industry overview

Summary

Introduction

Market dynamics

Global confectionery market size by value

Global confectionery market size by sales volume

Global confectionery market value by product categories

Global confectionery market based on geographic segmentation

Confectionery industry drivers and resistors

Competitive landscape

The top 10 companies based on sales

The impact of acquiring Cadbury’s on the top 10 companies ranking order

Competitive positioning of the top 10 confectionery companies

Depth in top 10 companies confectionery portfolio

Trends

Emergence of functional and nutritional confectionery

Shift towards premium chocolates

Rising prices of cocoa

Chapter 3 Mars

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Enhancing global reach through the acquisition of Wrigley

Developing nutritional confectionery to capitalize on the shift in preference towards healthy foods

Expanding and extending premium chocolate portfolio

SWOT analysis

Chapter 4 Nestlé

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Strengthening brand presence in the premium and luxury chocolate category

Expanding premium and luxury chocolate confectionery portfolio

Consolidating its position in the premium chocolate category in the

Eastern European markets

Positioning its confectionery among healthy foods

SWOT analysis

Chapter 5 Cadbury

Summary

Company overview

Takeover bids for Cadbury

Recent financial performance

Performance by business segments

Growth strategies

Attaining cost efficiency through restructuring

Expanding global reach

SWOT analysis

Chapter 6 Ferrero

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Launching dark chocolates to further penetrate premium confectionery category

Expanding production capabilities in emerging markets to accelerate the pace of business growth

SWOT analysis

Chapter 7 Hershey

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Enhancing global reach in emerging markets

Expanding portfolio of premium chocolates

SWOT analysis

Chapter 8 Kraft Foods

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Strengthening production capabilities in Eastern Europe

Enhancing market share in premium chocolate category

SWOT analysis

Chapter 9 Perfetti

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Reformulating confectionery to position them in the healthy foods arena

Expansion in emerging markets

SWOT analysis

Chapter 10 Lindt

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Extending premium brands with new flavors in mature markets

Expansion of distribution networks

SWOT analysis

Chapter 11 Meiji Holdings (Meiji Seika)

Summary

Company overview

Recent financial performance

Performance by business segments

Growth strategies

Ramping up international operations

Strengthen market share in Japan

SWOT analysis

Chapter 12 Lotte

Summary

Company overview

Recent financial performance

Growth strategies

Expanding in emerging markets

Extending reach in the US confectionery market through a joint-venture with

Hershey

SWOT analysis

Chapter 13 Other major players

Grupo Arcor (Arcor)

Company overview

Barry Callebaut

Company overview

Recent financial performance

Ezaki Glico

Company overview

Recent financial performance

Haribo

Company overview

Recent financial performance

Leaf International (Leaf)

Company overview

Recent financial performance

Morinaga

Company overview

Recent financial performance

Roshen Confectionery (Roshen)

Company overview

Recent financial performance

Storck

Company overview

Ülker Bisküvi Sanayi (Ülker)

Company overview

Recent financial performance

United Confectionery

Company overview

Recent financial performance

Appendix

Glossary

Index

List of Figures

Figure 3.1: Global confectionery market size by value ($bn), 2008-13

Figure 3.2: Global confectionery market size by sales volume (m kgs), 2008-13

Figure 3.3: Share of global confectionery market by product (%), 2008

Figure 3.4: Share of global confectionery market by geography (%), 2008

Figure 3.5: Confectionery industry drivers and resistors

Figure 3.6: Top 10 confectionery companies' growth, 2007-08

Figure 3.7: Depth in top 10 companies confectionery portfolio

Figure 3.8: Rise in cocoa prices, 2004-08

Figure 4.9: Mars SWOT analysis

Figure 5.10: Nestlé financial performance ($m), 2004-08

Figure 5.11: Nestlé SWOT analysis

Figure 6.12: Cadbury financial performance ($m), 2004-08

Figure 6.13: Cadbury SWOT analysis

Figure 7.14: Ferrero SWOT analysis

Figure 8.15: Hershey financial performance ($m), 2004-08

Figure 8.16: Hershey SWOT analysis

Figure 9.17: Kraft Foods financial performance ($m), 2006-08

Figure 9.18: Kraft Foods SWOT analysis

Figure 10.19: Perfetti financial performance ($m), 2004-08

Figure 10.20: Perfetti SWOT analysis

Figure 11.21: Lindt financial performance ($m), 2004-08

Figure 11.22: Lindt SWOT analysis

Figure 12.23: Meiji Holdings (Meiji Seika) financial performance ($m), 2006-08

Figure 12.24: Meiji Holdings (Meiji Seika) SWOT analysis

Figure 13.25: Lotte SWOT analysis

Figure 14.26: Barry Callebaut financial performance ($m), 2006-08

Figure 14.27: Ezaki Glico financial performance ($m), 2004-08

Figure 14.28: Leaf financial performance ($m), 2006-08

List of Tables

Table 3.1: Global confectionery market size by value ($bn), 2008-13

Table 3.2: Global confectionery market size by sales volume (m kgs), 2008-13

Table 3.3: Global confectionery market by product ($m), 2008

Table 3.4: Global confectionery market by geography ($m), 2008

Table 3.5: The top 10 confectionery companies, 2008

Table 3.6: Changes in rankings after Cadbury’s acquisition, 2008

Table 3.7: Select functional confectionery launches, 2007-09

Table 3.8: Select dark extensions of existing brands

Table 4.9: Mars snapshot

Table 5.10: Nestlé snapshot

Table 5.11: Nestlé financial performance, 2004-08

Table 5.12: Nestlé business segment performance, 2008

Table 6.13: Cadbury snapshot

Table 6.14: Cadbury financial performance, 2004-08

Table 6.15: Cadbury acquisitions, 2007-09

Table 7.16: Ferrero snapshot

Table 8.17: Hershey snapshot

Table 8.18: Hershey financial performance ($m), 2004-08

Table 9.19: Kraft Foods snapshot

Table 9.20: Kraft Foods financial performance ($m), 2006-08

Table 9.21: Kraft Foods business segment performance ($m), 2008

Table 10.22: Perfetti snapshot

Table 10.23: Perfetti financial performance, 2004-08

Table 10.24: Perfetti business segment performance, 2008

Table 11.25: Lindt snapshot

Table 11.26: Lindt financial performance, 2004-08

Table 12.27: Meiji Holdings (Meiji Seika) snapshot

Table 12.28: Meiji Holdings (Meiji Seika) financial performance, 2006-08

Table 12.29: Meiji Holdings (Meiji Seika) business segment performance, 2008

Table 13.30: Lotte snapshot

Table 14.31: Arcor snapshot

Table 14.32: Barry Callebaut snapshot

Table 14.33: Barry Callebaut financial performance, 2006-08

Table 14.34: Ezaki Glico snapshot

Table 14.35: Ezaki Glico financial performance, 2004-08

Table 14.36: Haribo snapshot

Table 14.37: Leaf snapshot

Table 14.38: Leaf financial performance, 2006-08

Table 14.39: Morinaga snapshot

Table 14.40: Roshen snapshot

Table 14.41: Storck snapshot

Table 14.42: Ulker snapshot

Table 14.43: United Confectionery snapshot