Global confectionery sales are projected to reach $198 billion in 2014 and chocolate is the most popular confectionery treat, according to recent data published by Euromonitor International, a consumer markets research firm. Euromonitor’s data combines confectionery sales for the first six months of 2014 and its own full year forecasts for the sector.
An increasing middle class in developed and emerging markets contributed to the rise as chocolate and other sweets become an increasingly affordable luxury, according to the report.
Cocoa price rises resulting from this increased chocolate consumption globally are the topic of discussion for chocolate producers. “Unit prices of chocolate confectionery have risen from a global average of $15.2 per kg in 2009 to $15.6 per kg in 2014, and are expected to hit $15.8 per kg by 2019,” reads the report. Manufacturers including Hershey, Nestlé and Mars cite the cost of cocoa as a reason to raise unit prices, according to the report.
In confectionery more widely, countries that made impressive gains include Brazil that is projected to record retail sales of $11 billion in 2014 and Russia that surpassed Germany to take fourth place with $13 billion worth of projected 2014 sales, according to Euromonitor.
India is reportedly the fastest growing confectionery market globally, with a forecast compound annual growth rate of 9 percent. Many large companies in the industry, such as Nestlé and Mars, have pursued aggressive strategies by lowering the cost of established products and this has contributed to this growth, according to the report.
The US continues to be the largest confectionery market world wide, with retail value sales of $32 billion, followed by Japan at $15 billion.