Iranians prefer traditional sugar confections

The modern sugar confectionery market is immature in Iran. Traditional products were popular in 2016, consultancy Euromonitor said, with geo-specific confectionery in different cities that are often sold as souvenirs. Gaz (گز) from Isfahan, a type of nougat; sohan (سوهان) from Qom, a saffron-laced toffee; and baklava (باقلوا) from Yazd, a layered pastry with nuts soaked in sugar syrup, are all popular traditional sugar confectionery in Iran. 

Sugar is popularly consumed with tea as sugar 'cubes' which are cut into irregular shapes by hand. Sugar-free products are also increasingly popular among Iranian consumers, as they are increasingly concerned with their appearance and health.

The Iranian sugar confectionery market is dominated by Shiva Manufacturing Company, the key leading player in pastilles with a wide range of products in different shapes and flavours accounts for a 22% retail value share in 2016. Next in line is Dadash Baradar Company (Aidin) which accounts for 15% market share by retail value in 2016. It is known for boiled sweets, toffees and mints. Draje Food Industries is in third place, accounting for 8% of retail value sales of sugar confectionery, mainly in pastilles.

Sugar confectionery is expected to grow steadily with a CAGR of 1% in constant 2016 terms from 2016 to 2021, and will be higher than that seen in the review period (2011 to 2016). Domestic suppliers will expand their activities while multinational brands are expected to enter the market. The consumption of new premium brands is expected to grow over the forecast period due to increased consumer curiosity and the willingness of the younger generation to spend more on these products. 

Interested?

Buy the Euromonitor Confectionery in Iran report (December 2016)

Gum to have checkered future in Iran

Gum in Iran is being held back by smuggled goods which compete with official brands in both quality and unit price, says Euromonitor. "It is very common to go to a typical hypermarket or supermarket in Tehran and see shelves full of smuggled products, sometimes even more than official imports," the research firm said in an executive summary of the Confectionery in Iran report. 

The weak Iranian economy also limits purchasing power, the company said. 

Pars Minoo Industrial Company is a key domestic supplier and one of the leading gum players in the Iranian gum market for 2016, with its sugarised Chic and sugar-free White products both being very popular. The Chic brand has almost 100% penetration in retail, making it the best-selling gum in Iran. Retailers also use Chic gum as small change when they have no coins, a practice that is common in many countries where the smallest denominations are hard to find but still required.

The sugar-free White brand for gum by Pars Minoo is very similar to Orbit in terms of quality and packaging and has convinced many fans of Orbit to switch their loyalty to White because it is more affordable.

According to Euromonitor, the gum market outlook is promising. The leading domestic players are expected to expand their activities every year, resulting in stronger consumer awareness of local gumm brands and boosting gum sales. Smaller gum suppliers will also continue to maintain their small share in a highly competitive environment. 

Interested?

Buy the Euromonitor Confectionery in Iran report (December 2016)

Sugar confectionery market to grow at 4% CAGR through to 2021 in Indonesia

Perfetti Van Melle Indonesia PT is known for the Mentos brand in Indonesia.

A large variety of affordable sugar confectionery, coupled with marketing efforts from leading manufacturers in Indonesia has been driving sales in this product category in Indonesia, says research consultancy Euromonitor in its Confectionery in Indonesia report.

Perfetti Van Melle Indonesia PT continues to lead sugar confectionery with a value share of 23% in 2016. The company is known for the Mentos, Alpenliebe, Fruit-tella, Marbels, Golia, Chox and Chupa Chups brands. Over the review period of 2011 to 2016 the company invested heavily in new product development as well as marketing in order to maintain its leadership of the category, Euromonitor said.

Sugar confectionery is expected to increase at a value CAGR of 4% at constant 2016 prices over the forecast period from 2016 to 2021, driven by the Indonesian consumer characteristics such as the willingness  to try new products. Euromonitor believes that manufacturers are likely to work on brand differentiation in the face of tough competition. They are also expected to launch new products regularly, while at the same time maintaining stable prices.

Interested?

Buy the Euromonitor Confectionery in Indonesia report

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.

Interested?

Buy the Euromonitor Confectionery in Azerbaijan report

Chocolate takes up lion's share of confectionery market in Azerbaijan

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.

Perfetti Van Melle is 2016 gum leader in Indonesia

The positive volume growth of gum confectionery in Indonesia in 2016 was due to improved distribution of gum, especially chewing gum, as a result of the rapid expansion of modern retail outlets. Purchasers were also encouraged by the benefits of gum, including fresh breath and teeth whitening, says research consultancy Euromonitor.

PT Perfetti Van Melle Indonesia continued to lead gum with a value share of 58% in 2016, Euromonitor said. Perfetti Van Melle Indonesia has been successfully using promotions to build a wider consumer base and higher brand awareness.

Volume growth in gum is expected to remain positive over the forecast period from 2016 to 2021, with improved distribution expected to ensure product availability. Leading gum manufacturers are likely to continue price promotions and new product development, which would further boost growth in gum over the forecast period, Euromonitor said.

Interested?

Buy the Euromonitor Confectionery in Indonesia report

Increasing demand for coffee generates more interest in the International Coffee and Chocolate Exhibition

Coffee and chocolate sales have trebled in the Arab world in the past decade with consumption having increased by 100% in Saudi Arabia alone in the past three years. According to economist Hajar Al-Fadl, Saudis now spend more than SR5 billion on coffee each year.

"The Kingdom has achieved a huge growth in coffee sales with 25% annual growth each year from 2011 to 2014, making it the fastest-growing coffee market in the world," Al-Fadl said.

The figures were revealed ahead of the 2nd International Coffee and Chocolate Exhibition, which takes place at the Riyadh International Convention and Exhibition Center from 26 to 28 November, 2015.

Last year’s exhibition attracted 120 exhibitors and over 25,000 visitors, with organisers Heights Agency predicting this year’s event will be even bigger with new features, including the introduction of the national barista championships.

“The event is one of the most significant coffee and chocolate events in the Arab world, and provides an integrated platform to highlight all aspects of the two products,” said Mohammed Al-Afees, Chairman of the Organising Committee. “This year we are adding a number of interactive workshops and training programs for participants, as well as the national barista championships to celebrate masters of the art of coffee preparation.”

Al-Afees said prominent coffee and chocolate experts from the Gulf Cooperation Council (GCC), the Arab world and internationally will attend the three-day event, which offers significant investment and partnership opportunities, as well as an introduction to the Saudi market.

"The event is held in line with the active commercial movement in the Arab and Gulf markets regarding the two commodities, where the Kingdom is considered one of the leading coffee producers in the region and one of the most consuming countries in this area," he said.

Interested?

Exhibitors have until the end of October to register

Nestlé replacing vanillin with natural vanilla in the US

Source: Nestlé. 

Nestlé USA will remove artificial flavours such as vanillin and FDA-certified colours like Red 40 and Yellow 5 from all of its chocolate candy products by the end of 2015. The company said the move has already been taken by Nestlé in other parts of the world and will cover more than 250 products in the US. Products will begin appearing on store shelves by mid-2015, and will be identified by a No Artificial Flavors or Colors claim featured on-pack.

The company said ingredients from natural sources can include annatto, which comes from the seeds found in the fruit from the achiote tree, to replace Red 40 and Yellow 5 in the BUTTERFINGER centre. In CRUNCH, natural vanilla flavour, which contains a minimum of 35% ethyl alcohol by US law, will replace vanillin.

“Nestlé is the world’s leading nutrition, health and wellness company and our commitment to remove artificial flavours and certified colours in our chocolate candy brands is an important milestone,” said Doreen Ida, President, Nestlé USA Confections & Snacks. 

“We know that candy consumers are interested in broader food trends around fewer artificial ingredients. As we thought about what this means for our candy brands, our first step has been to remove artificial flavours and colours without affecting taste or increasing the price.”

“We never compromise on taste. When making these changes to more than 75 recipes, maintaining the great taste and appearance consumers expect from the chocolate brands they know and love is our #1 priority,” said Leslie Mohr, Nutrition, Health and Wellness manager, Nestlé Confections & Snacks. “We conducted consumer testing to ensure the new recipe delivers on our high standards for taste and appearance.”

According to Mohr, this change affects Nestlé’s current portfolio of chocolate brands including NESTLE CRUNCH, BUTTERFINGER, BABY RUTH, SKINNY COW, RAISINETS, GOOBERS, SNO CAPS, 100 GRAND, OH HENRY and CHUNKY. 

Going forward, all newly launched chocolate and non-chocolate candy products (gummies, sours, etc.) introduced by Nestlé USA will be made without artificial flavours or colours. Additionally, Nestlé USA is actively pursuing the removal of caramel colouring from its chocolate products. Caramel colouring is an exempt-from-certification colour additive, which is used in only nine of the more than 250 chocolate products.