Spending on sweets at a record high

By: Trademagazin editor Date: 2024. 01. 26. 09:50

Despite the difficult economic situation, consumers’ appetite for snacks has not decreased. This is what a NielsenIQ study suggests that was published on Tuesday and conducted on occasion of the international trade fair for sweets and snacks (ISM) in Cologne.

According to the study commissioned by industry association Sweets Global Network, European consumers spent a record amount on sweets and snacks between November 2022 and 2023. With 99 billion euros, it is 13.6 per cent more than a year before. This means that the product group accounts for more than 10 per cent of all consumer goods.

However, there are significant differences between EU countries. In Poland, prices rose by 19 per cent in a year, in Germany by 12.9 per cent and in Russia by 9.9 per cent. Despite the sharp price rises, sales have not fallen. According to NielsenIQ, sales volumes rose by 0.7 per cent to 10.1 million tonnes. While other consumer goods segments have recently incurred significant losses due to a slowdown in consumer spending, the study found that demand for confectionery is strong and the category has proved to be resilient to the crisis.

Nevertheless, the German confectionery industry is feeling the effects of economic changes and inflation. In particular, the recently constant rise in costs is makes the industry worry, but changes in consumer behaviour offer some hope.

„Consumers are much more interested in nutrition and sustainability than 20-30 years ago. This opens up the possibility for us to develop new products” Bastian Fassin, President of the German Confectionery Industry Association (BDSI) said.

A shift is seen in the trend towards healthy and sustainable snacks made with natural ingredients, without additives and with little or zero sugar. Manufacturers are increasingly focusing on fruit and vegetable snacks, energy bars and other products designed to replace solid food, as trade visitors can see for themselves at the ISM trade fair in Cologne from Sunday to 31 January.

Some 1,400 exhibitors from 70 countries will showcase on 100,000 square metres their products and a range of novelties such as mushroom gummies, sweet potato popcorn, chickpea and chocolate quinoa waffles, marshmallow fries and cocoa-free chocolate made from oats and sunflower seeds.

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