The US confectionery market has been forecast to increase at a compound annual growth rate (CAGR) of 3.07% over the next five years, increasing from a value of about US$32 billion at the start of 2012, to reach a value of $37 billion by 2017.
According to a recently released report, ‘The Future of the Confectionery Market in the United States to 2017,’ in terms of categories, ‘Chocolate’ is forecast to continue as the largest sector in the industry, and will be valued at over USD 20 billion by 2017.
Chocolate continues to do well for itself as consumers become increasingly attracted to premium chocolates, seeing them as an affordable luxury. At the same time, major manufacturers continue to use innovation targeted at younger consumers to drive sales.
These consumers of chocolates are increasingly drawn to bold and indulgent flavours, leading many companies to release new varieties of existing brands.
The second largest category, ‘Sugar Confectionery’ will be worth about USD 13 billion by 2017. The fastest growing category is suggested to be ‘Chocolate’, which will grow at a CAGR growth rate of around 3.2% between 2012 and 2017.
Traditionally, gum has relied heavily on younger consumers to drive sales since they represent a large portion of the purchasing base. However, in recent years younger consumers have had less disposable income and an increased apathy towards the activity of chewing gum in general, and this has led to a bit of a decline.
To combat this, the major gum companies appear to be going after younger consumers with two different approaches. In an attempt to capture more price-oriented consumers, Wrigley will continue to push small, but seemingly more affordable five-piece packs of gum for its 5 and Orbit brands. However, Kraft is attempting to use stylised packaging design with its new ID gum in an attempt to encourage younger people to chew gum again.
Updated at: 2013-07-17