Accounting for a 50% value share of confectionery in Azerbaijan, chocolate confectionery is a very saturated category and is represented by chocolate pouches and bags, boxed assortments, chocolate with toys for children, countlines*, seasonal chocolate and tablets says Euromonitor in its Confectionery in Azerbaijan report.
After local currency devaluations in 2015, disposable incomes in Azerbaijan shrank, pushing consumers to cheaper brands. Nur is currently the leading company, accounting for a 14% value share in 2016. Nur is the official distributor of the brands of Mondelez International, such as Alpen Gold, Vozdushny, Milka, Toblerone, Twist and others.
Nestlé Azerbaijan, representing the brands Nestlé, Kit Kat, Nesquik, Nuts and others, accounted for a 12% value share of chocolate confectionery in 2016. The tablets and countlines distributed by these companies are highly popular among consumers due to their wide variety, extensive promotions and advertising through media resources, availability and good positioning.
The main consumers of chocolate in Azerbaijan, particularly chocolate with toys, countlines and tablets, remained children and young people. Older people traditionally prefer chocolate pouches and bags. Over the forecast period (2016 to 2021), local production of chocolate confectionery is expected to grow, which will drive prices down slightly and result in stronger competition. New flavours and packaging are expected to be introduced over the forecast period.
*Packaged candy packed in boxes that is displayed within the box, but purchased individually.