Export
Second and third tier cities, as well as some rural areas, are expected to underpin the growth of sugar confectionery to a large extent. Trade sources indicate that an increasing number of manufacturers are gaining a presence in second and third tier cities as well as in rural areas. With more disposable income, people from low tier cities and rural areas spent more on sugar confectionery. Medicated confectionery is one
category that is projected to register positive value growth, with sales forecast to rise by 4% in retail volume terms in 2012. Store checks and trade sources indicate that many manufacturers from other industries, such as pharmaceutical or beverage producers, entered or plan to explore medicated confectionery. With the strength of Chinese medicine, quite a few brands, such as Wanglaoji, expanded their businesses into medicated confectionery. They thus sought to capitalise on increasing consumer awareness of the health benefits of these products.
kennedysconfection.com
Gum
Gum is predicted to see strong growth in 2012, at 11% in retail value terms and 4% in retail volume terms respectively.
Sugar free gum is projected to be the strongest performing category within gum, growing by 10% in retail volume terms in 2012. With rising consumer awareness of health issues, functional gum received wider recognition and its regular consumer base increased at the end of the review period. To catch up with this latest trend, manufacturers worked hard to educate consumers regarding the health benefits of xylitol through various
marketing activities. For example, an interesting TV advertisement was launched for Extra Xylitol in 2011, which impressed a lot of people with its creative love stories. This advertisement described the functions of Extra Xylitol by using a series of love stories named “sour, sweet, bitter, spicy”, clearly presenting the functions of the product. Various channels were explored for advertising, such as mini TVs in taxis and screens in metro stations. Strong investment in marketing proved effective in terms of consumer education and helped drive sales of functional gum.
■ For further insight, please contact Francisco Redruello, Euromonitor International’s Senior Foods Analyst, at
francisco.redruello@
euromonitor.com
Kennedy’s Confection September 2012 27
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