Sugar confectionery market to grow 4% in Azerbaijan

Azerbaijan’s strong preference for unpackaged versions of sugar confections since Soviet times has continued in 2016. These include sold-by-weight caramels, boiled sweets, chews and jellies from both local and multinational manufacturers, and specific traditional sugar confectionery products, says Euromonitor. 

Domestic production mainly came from Bolluq and Bismak Senayi Kompleksi. More than a 50% share of sugar confectionery sold in the country is imported from Ukraine (10,304 tonnes in 2014). The leading brands from Ukraine include Konti and Roshen. Key Russian brands in Azerbaijan are Udarnitsa, Sharmel and Krasny Oktyabr, Rot Front, Nestlé Azerbaijan, Mars and Ferrero Russia (brand Raffaello). 

Some 100 tonnes of lollipops, mints and pastilles are imported annually from Ukraine, Russia, Turkey and Germany. Seventy percent of boiled sweets are imported from Ukraine; however, starting in April 2016, Russia has been taking action against exports of Ukrainian sweets to Georgia and Azerbaijan (through Georgia). Also, the brands Haribo, Tic Tac (Ferrero) and Hazerbaba from Turkey are increasingly accounting for a larger share of sales.

United Brands Distribution led sugar confectionery in 2016 with a 20% value share. The company officially distributes the top sugar confectionery brands from GBO Perfetti Van Melle Group, such as Chupa Chups. Fruit-tella and Mentos, and also the brands of GBO Mendelez International. In addition, for the last few years of the review period, the brand Sulá from GBO Perfetti Van Melle Group, imported by NBO United Brands Distribution, has increased in popularity. 

Sales are expected to grow at a CAGR of 4% at constant 2016 prices over the forecast period (2016 to 2021). Other sugar confectionery is set to record a strong performance over the forecast period, which will be due to an expected increase in the number of brands with health and wellness positioning. Boiled sweets is set to continue to be the largest category in both value and volume terms over the forecast period.

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