Italy confectionery market was estimated to account for a value of USD 5.39 billion in 2017 and is expected to exhibit growth over the forecast period to increasing spending power of consumers. There are numerous players in the Italy confectionery industry such as Perfetti Van Melle, Nestle, Fererro, Mars, Wrigley, Barry Callebaut, Leaf Italia, Alfred Ritter, Haribo. Perfetti Van Melle is the leading player in the sugar confectionery segment accounting for approximately 30% of market share. Its most popular brands in Italy are Chupa chups, Alpenliebe, Morosiats and Golia. Whereas, Ferrero is the leading player in Italy choclate confectionery market.
Italy confectionery market revenue split, by type, 2017 (% share)
This industry has evolved significantly in Italy market over the past few years, primarily due to rising demand for dark chocolates ammong end users. However, the sugar confectionery witnessed a lack luster growth owing to the belief that sugar is harmful to health and is avoided. The recession also impacted the market in the past few years. Thus, the confectionery sector observed a stagnant growth. However, the market is expected to recover as a result of growing economy and new product innovation that add value to the cofectioneries. thus, manufacturers are launching products with high nutritional value to lure the customers. For instance, Nestle has introduced its fruti & nut choclate bar to provide value added chocolate to consumers.
Increasing health awareness among the fitness determined consumers has resulted into shift of prefernce from traditional confectionery products to natural health beneficial products. Thus, manufacturers are focusing on organic products to cater to the need of the consumers. For instance, Venchi in Italy offers organic certified chocolate bars with numerous variants available such as dark chocolate, milk and white chocolates and others. Furthermore, the fair trade practices is gaining importance in the retail sale of chocolates to attract the environmental consious consumers. However, the soaring cocoa prices is expected to impact the growth of the chocolate market which can further result as a posible restrain on the confectionery market in future.
Segmentation by product type
• Sugar confectionery
Consumers are seeking products which will provide them with health benefits at minimum cost. Thus, manufacturers are launching premium value-added products at lower price range. Chocolate segment is expected to register significant growth owing to the introduction of new product development. For instance, the single origin chocolate where the cocoa country origin is highlighted is gaining popularity in Italy. Thus, the added value to chocolates is expected to drive the confectionery market in future. Furthermore, manufacturers are focusing on launching products enhanced with vitamins, calcium, and fruits to lure the health-conscious consumer. Many manufacturers are also replacing sugar with agave syrup, blossom nectar and stevia so as to fulfill the need of the fitness determined consumer. For instance, Biologico by Venchi’s is a 100% cocoa product for the health-minded consumers. Nestle has introduced the Fitness dark chocolate bar with the goodness of wholegrain to cater to the need of health-conscious consumer.
Sugar confectionery has witnessed lackluster growth owing to the side effects of sugar. Thus, sugared items are avoided as a result of increasing health issues such as obesity and diabetes in consumers. The reduction in impulse purchases of sugar confectionery product is expected to slow down the sale of this product in future period. However, the gum is the fastest growing segment owing to the associated benefits. The manufacturers are focusing on health gums specifically designed to gain specified benefits such as teeth and gum health. For instance, Sugar free chewing gum has gained popularity in Italy over the past few years.
The market is characterized by the presence of well established players. Perfetti Van Melle, and Leaf Italia are some of the leading players in this country. Ferrero led the chocolate market, accounted for around 30% of the total Italy market. It is closely followed by the Nestle and Lindt & Sprüngli. The manufacturers are developing brands coupled with ethical sourcing and sustainability process that are expected to drive the market over the forecast period.
Research Support Specialist, USA