DUIVEN, The Netherlands—Despite price increases in raw material costs—particularly cocoa and sugar—the confectionery sector experienced a rebound in the first half of 2011 thanks to strong product and promotional activity as well as consumer demand for small and relatively inexpensive snacks and treats, according to new market data from Innova Market Insights.
Overall, the confectionery sector introduced the most new launches with the food and beverage sector in the first half of 2011. The chocolate category saw the greatest number of launches, equivalent to nearly two-thirds of the total, followed by sugar with just under 30% and chewing gum with 5%.
Brand extensions continue to dominate chocolate confectionery market activity in 2011. Nestlé’s Kit Kat emerged as global leader with launches ranging from a candied sweet potato Kit Kat variant in Japan; a boxed Kit Kat Singles variant in Germany and a range of Kit Kat Chunky 3 variants in Australia.
Bite-size chocolates also are trending, particularly in the United Kingdom with launches including Cadbury Dairy Milk Chocos and Galaxy Bites. Sharing bags concept also is being marketed in a number of European countries with new launches including Kit Kat Pop Chocs in the United Kingdom, Milka Crispy Snax, Daim Snax and Lila Stars Snax in pouches in Germany.
According to Innova, the chewing gum category experienced more product launches and success with lifestyle products over the past few years, particularly sugar-free, mouth-freshening gums, in convenient formats designed to appeal through groundbreaking flavors, packaging and graphics.
A number of interesting 2011 launches include Australia’s first approved fortified sugar-free gum in the form of Wrigley’s Extra Professional Calcium; a three-layer chewing gum under the Mentos 3 name in France including a mint and licorice variant; and Kraft/Cadbury’s Trident Vitality range of enriched gums in Awaken, Vigorate and Rejuve varieties in the United States.
Taking confectionery to the next level, is the recent U.S. launch of Xan Confections’ Coco Preggers, a range of chocolate truffles that contain folic acid and DHA omega-3 fatty acids that are marketed specifically to pregnant women.