industry NEWS
Confectionery sector at ‘high risk’ to infl ationary pressure
The ‘indulgent’ food segment, which includes chocolate and confectionery categories as well as savoury snacks and ice cream, is at ‘high risk’ to global infl ationary pressure, writes GlobalData. The leading data and analytics company notes that the segment is only due to rise by 2.2% in volume CAGR 2021-2024. Chocolate and confectionery will be one of the categories that will be hit the hardest with volumes set to decrease from a 2016-2019 CAGR of 2.1% to a 2021-2024 CAGR of 1.5%. Ice cream is set to see a double digit increase in value over 2021-2024 but only a 2.2% rise in volume in the same period. Jenny Questier, Senior Analyst at GlobalData, commented:
“As these products are often positioned as treats and rewards and not staple parts of weekly meals, they are more likely to be compromised in consumers’ shopping baskets as household budgets continue to get tighter and consumers consider their health priorities.” GlobalData’s forecasts show that all categories in indulgent
food are gaining value over volume, suggesting that infl ation and price increases are currently set to drive growth rather than increased sales in the next couple of years. Questier continued: “Ice cream specifi cally has associated
manufacturing, logistics and storage costs around freezing that will have to be passed on to the consumer as energy costs continue to rise. Added costs combined with the seasonality of these products will further dampen peoples’ desire to purchase these in the future as they focus on essential items.” According to GlobalData’s 2022 consumer surveys, the
number of US consumers who claimed to spend a ‘high amount’ on chocolate and confectionery decreased by 12%* in Q3 compared to the fi rst three months of 2022. This means that as well as the long-term market forecasts predicting a change in spending habits, many consumers have already started to make these compromises. Questier added: “The current circumstances could be an
opportunity for brands and manufacturers to look at product portfolios and innovation with a view to staying relevant and available to consumers. Price points in these categories especially will need to stay low to encourage spending, either by smaller pack sizes or perhaps even as part of cross- promotions in future with more essential products.”
Nestlé launches new Munchies sharing bar
There is now a delicious new way to enjoy Munchies, with Nestlé announcing the launch of the brand’s very fi rst sharing bar. A mouth-watering combination of gooey caramel and
crispy biscuit encased in a milk chocolate shell, Munchies Caramel and Biscuit Sharing Bar makes a great treat to break apart and savour with family and friends. Amy Kendall, Munchies Brand Manager said: “We know that Munchies fans are a passionate bunch – we always receive a tremendous reaction whenever we launch new fl avours and formats from the brand. And because they taste so good, it’s not surprising that fans love to munch with their favourite people – in fact, Munchies is one of the most popular sharing bags we sell here at Nestlé Confectionery. “That’s why we are especially excited to introduce our
latest innovation – a brand new sharing bar. We’ve set the bar high on this one – it’s got soft, gooey caramel, it’s got crunchy biscuit pieces and the whole lot is encased in a smooth milk chocolate shell. In other words, our new Munchies bar is a bit of a taste sensation!” The 87g bar (RRP £1) is available now from a variety of supermarkets, convenience, and value stores including Iceland, B&M, Home Bargains, Poundland and Spar.
KennedysConfection.com
Kennedy’s Confection October 2022 11
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