The confectionery market - Italy (2024)

1.2 The global market

The global candy market size is estimated at $**.** billion in **** and is expected to reach $**.** billion by ****, with a CAGR of *.** percent during the forecast period.

Global candy market value World, ****-****, in billions of dollars (***) Mordor Intelligence

Regarding the European market, the market is expected to be worth $**.** billion in **** from $**.** billion in **** (***). The growing demand for innovative and functional ingredients in confectionery is one of the main factors stimulating the growth of the European confectionery market. Consumers are showing tremendous interest in gum and snack bars equipped with functional ingredients, such as different types of fruit and sea salt.

Value of the European confectionery market Europe, ****-****, in billions of dollars (***) Market Data Forecast

1.3 The domestic market

The domestic confectionery market experienced a significant contraction in the data on production sold in both value and tons. In the case of production sold in value, a significant decline of **.** percent was observed compared to ****. This decline can be attributed to several factors, including changes in consumer preferences, an increase in production costs, and increased competition from alternative or healthy products.

Production sold by value (***) Italy, ****-****, millions of euros (***) Istat

In addition, production sold in tons followed a similar trend, decreasing by **.* percent. The domestic candy market appears to have undergone significant transformation and adaptation to changing consumer preferences and market challenges, leading to a reduction in both production sold in value and tons.

Production sold in quantity (***) Italy, ****-****, in tons Istat

1.4 The foreign market

Data on confectionery exports to the foreign market show a positive trend during the period from **** to ****. During this period, exports grew significantly, registering an increase of **.* percent, far outpacing the increase in imports, which was **.* percent. In addition, the coverage ratio (***) improved significantly through ****, increasing by **.* percent. However, it is important to note that it declined by *.* percent.

Exports, Imports and Coverage Rate - HS Commodity Code **** Italy, ****-****, in millions of dollars (***) UNComtrade

In terms of exports, the top five consuming countries are Germany (***).

Distribution of exports among the top * consuming countries Italy, ****, % UNComtrade Analyzing the value of imports shows that Germany, again, is a significant partner, accounting for **.* percent of imports. The German market is significant for Italian confectionery, with sweets among the most exported Italian food products to Germany. Important Italian brands such as Sperlari, Caffarel (***). Breakdown of imports among the top * supplier countries Italy, ****, % UNComtrade

1.5 Impact of the conflict between Russia and Ukraine

The consumer price index growth of **.* points (***) indicates a significant impact of the Russian-Ukrainian conflict on the confectionery industry. This increase in consumer prices is attributed to various factors, such as the economic and political instability caused by the conflict, which has affected the supply chain and production costs. Another determinant is the decreased availability of key ingredients or difficulties in exporting and importing products due to interstate tensions.

Consumer price index - sugar, jams, honey, chocolate and confectionery Italy, ****-****, base ****=*** (***) Istat

The consumer price index is nothing more than a reflection of producer prices. The confectionery sector grew by **.* points from January **** to October ****, which means there was a growth of **.* percent.

Producer price index - cocoa, chocolate, candies and confectionery Italy, ****-****, base ****=*** (***) Istat

2.1 Demand characteristics

In our country, * out of ** Italians(***) consume candy; the figure is evident when analyzing the value of the family's monthly expenditure item on sugar, jams, honey, chocolate and sweets, which, in addition to being very high in itself, has increased by*.*% compared to ****. In ****, spending increased by**.* percent compared to ****.

Item of monthly household spending on sugar, jams, honey, chocolate and confectionery Italy, ****-****, in current euros (***) Istat Contrary to what one imagines, the product is not purchased primarily for children: * out of ** Italians(***) buy candy for children under * years old.

Buyer profile Italy, ****, % Horecanews According to the data, * in * Italians(***).

Favorite type of candy Italy, ****, % Italian Food Union

On the podium of the most popular candy flavors are mint, eucalyptus and anise(***). This is followed by berries, natural herbs, coffee, honey, caramel, milk, creme, exotic and black cherry flavors.

Most popular candy flavors Italy, ****, % Italian Food Union

2.2 Demand drivers

According to the data, there are moments when consuming a candy becomes more necessary and almost indispensable; the first situation that is mentioned is the moment when facing a long journey, whether by plane, train or car, **% of Italians place this situation first among the three moments most associated with candy consumption. Rounding out the podium are leisure moments experienced in company(***).

Moments when sweets are consumed the most Italy, ****, % Italian Food Union

Even in moments of waiting and concentration, candy turns out to be essential for consumers. Many appreciate them whilewaiting at the airport or station(***).

Candy as an outlet in moments of concentration: the data Italy, ****, % Italian Food Union It turns out to be the afternoon (***) like to diversify their candy consumption according to need and time of day. Favorite moments of the day for candy consumption Italy, ****, % Italian Food Union

2.3 Geographical distribution of demand

To visualize the geographic distribution of confectionery consumption, an analysis of the monthly household expenditure item on sugar, confectionery and desserts is proposed. Specifically, it can be seen that spending is concentrated in the regions of Northern Italy; in the Northeast, spending is recorded around **.**€ monthly, while in the Northwest the value is **.**€. This is followed by the Islands (***). The lowest value of spending on this type of product is in Central Italy, with a value of **.**€.

2.4 New demand trends

In recent years, buyers of candy and sweets have been experiencing increasingly evolving tastes and preferences. Thus, the sector lends itself to constant transformation and has some interesting trends to keep an eye on. First and foremost, there is a greater focus on healthier product standards, seeking to pay increasing attention to health and demanding candies that offer a treat equipped with better ingredients, such as natural sweeteners, fruit purees and organic flavors. In addition, reduced-sugar options and candies fortified with vitamins and minerals are gaining popularity, satisfying health-conscious candy lovers.

Candy with or without sugar? Italians' opinions Italy, ****, % Italian Food Union In addition to sugar-free, plant-based candies also continue to gain momentum. Manufacturers are experimenting with innovative plant-based ingredients such as: coconut milk, almond butter, and pectin-based gelling agents to create vegan and vegetarian candies. Plant-based sweets offer an ethical and sustainable option for consumers seeking cruelty-free options.

Sustainability Consumers are increasingly concerned about what ends up in their food, so clean labeling and sustainable packaging is a major concern for customers and manufacturers. In ****, there will be an increasing shift toward eco-friendly packaging options; from compostable wrappers to reusable boxes, candy companies are working to reduce their environmental ...

3.1 Market structure and dynamics

To know the dynamics that dominate this market, the number of active enterprises in recent years (***) is presented. Specifically, there is a **.* percent decrease in active enterprises from **** to ****. The lowest value was recorded in ****, where it reached *** active enterprises. From **** to **** there was again a slight decrease of *.* percent.

Enterprises active in the production of cocoa powder, chocolate, candies and confectionery Italy, ****-****, in numbers Istat

The distribution of legal forms of enterprises active in the production of cocoa powder, chocolate, candies and confectionery reflects a diversification in the sector. The fact that **.* percent are SRLs (***) suggests that many of these enterprises have chosen a corporate structure for the management of their activities, thus offering greater legal protection to the owners. On the other hand, the **.* percent of freelance sole proprietors and self-employed workers indicates the presence of small businesses run by individuals or self-employed professionals operating in the industry independently.

Legal form enterprises active in the production of cocoa powder, chocolate, candies and confectionery Italy, ****, % Istat The number of employees of enterprises active in the sector is very stable; in fact, it has not changed significantly during the years under analysis. From **** to **** there is a decrease of just ...

3.2 Value Chain

Getting to the heart of the market, it is interesting to know the evolutionary process of the product, from the supply of raw materials to the sale to the customer.

Raw materials

Raw materials are the basis of product composition:

Monosaccharides: fructose, dextrose and galactose belong to this category. These organic compounds have a low molecular weight and change color with high temperatures and high pH. The generic amount in confectionery products is <**%. Disaccharides: refer to sucrose, maltose and lactose. Compared to monosaccharides, disaccharides increase viscosity. Polysaccharides: polysaccharides are responsible for the properties of glucose syrup and retain graininess (***).

Sugar: sugar can be cane or beet sugar. In confectionery it plays an essential role as it masks the bitterness of flavors, is a preservative for flavors and gives structure to the product. Glucose syrup: consists of different types of carbohydrates (***). Depending on the composition of the syrup, different types of products are produced, e.g., ** DE is used as a filling for candies, while it is not suitable for making hard candies. Colorants. Flavorings: may be natural or artificial; in confectionery it is essential to comply with the *g/kg limit of the solvent. Intensive sweeteners. Licorice: may be in block ...

3.3 Distribution channels

Distribution channels are crucial for the sugar, chocolate, confectionery and bakery wholesale industry. Between **** and ****, this industry experienced an exponential growth of **.* percent. However, between **** and ****, there was a slight decrease of * percent in distribution activities.

Wholesale trade of sugar, chocolate, confectionery and bakery products Italy, ****-****, in thousands (***) Istat

Confectionery retail trade refers to the activity of selling confectionery and sweets directly to end consumers. From **** to ****, this sector experienced a growth of *.* percent, which may have been influenced by increased consumer demand or effective marketing strategies. However, thereafter, from **** to ****, there was a significant decline of **.* percent.

Firms active in the retail trade of cakes, sweets, confectionery Italy, ****-****, in thousands (***) Istat

3.4 Main actors

4.1 Type of Offering

The sector is highly diverse, presenting multiple possibilities in the market:

Hard candies: consist of a sugar and glucose base, which is subsequently cooked to obtain a soft, firm mixture. During the cooling phase, the substances that characterize the candy are added. Afterwards, the dough is molded, completing the cooling and making the packaging take place. Filled candies: a typical Italian type, this type of candy can contain: honey, fruity syrups, coffee or liqueur. They are processed so that the sucrose does not crystallize when the sugar syrup is concentrated. In this way, after the flavoring substances are added, the fondants remain soft. Caramelle Mou: Invented in the early ****s by a Parisian confectioner, these candies contain cream or milk cream, with the addition of vegetable fats. The mixture is processed and then extruded, then cut and allowed to cool, resulting in the color between brown and brown. Gummy candies: soft and elastic, they contain gum in high percentages. The most widely used is Arabica gum, made from the exudate of the bark of an acacia tree that grows in Africa. Ancient lozenges: lozenges are made by a cold process; first, powdered sugar, gum arabic, flavorings and other characterizing ingredients are ...

4.2 Prices

Over the past decade, the confectionery industry has experienced a significant increase in producer prices. The producer price index, which measures changes in the costs of goods and services within a specific industry, is a crucial indicator for understanding the economic performance of an industry. In this case, the producer price index in the confectionery sector rose exponentially, registering a **.* percent increase.

Producer price index for cocoa, chocolate, candies and confectionery Italy, ****-****, base ****=*** Istat

Theconsumer price index is an economic indicator that measures the average change in the prices of goods and services purchased by a typical household over time. The fact that the CPI rose **.* percent from **** to **** indicates a significant increase in consumer prices over this period. This increase could be due to several factors, including rising commodity costs and increasing demand.

Consumer price index in jams, marmalades and honey Italy, ****-****, base ****=*** (***) Istat

Below is an example of prices for some of the most widely consumed products.

4.3 The vegan candies

Most traditional candies contain ingredients of animal origin, such as gelatin, milk and honey. For this reason, those who follow a vegan diet must be careful in product selection, choosing *** percent plant-based. Animal gelatin, also known as "isinglass," is made by boiling and processing animal parts, such as skin, bone and cartilage; it is composed mainly of collagen, a protein found in connective tissues.

Vegan candies

To be sure you are buying a vegan product, it is essential that the list of ingredients does not include the following items:

Gelatin Fish glue E*** (***) Milk and dairy products Honey Egg yolk E*** (***)

It is also good to be wary of generic "flavoring" or "coloring" statements, as they may hide the use of unspecified animal ingredients.

Instead, vegan candies will carry wording such as:

Animal gelatin-free ***% plant-based Suitable for vegans VEGANOK (***)

In addition, the presence of VEGAN certifications from authoritative bodies is a further guarantee of the total absence of ingredients or adjuvants of animal origin.

Vegan gummy candies: alternatives to gelatin

To achieve a chewy texture without using animal gelatin, vegan candies are composed of plant substances with thickening and gelling properties. Alternatives to gelatin are:

Pectin: a soluble fiber found naturally ...

5.1 Rules and regulations

In the confectionery industry, it is essential to be familiar with various rules and regulations:

EC Regulation No. ***/****: this regulation sets standards for food safety and quality, including the confectionery sector; specifically, the general principles of food legislation are dictated, creating the European Food Safety Authority. Regulation (***) No. ****/****: concerns the provision of food information to consumers. This regulation requires food labels to be clear and easy to understand, including ingredients, allergens, and nutritional information. Regulation (***) No. ****/****: Regulation on contamination in food; this establishes maximum levels of certain contaminants, such as heavy metals and mycotoxins, in food products. Legislative Decree No. *** of ****: decree implementing EU regulations at the national level, establishing specific requirements for food safety and quality. Regulation (***) No. ****/****: regulation to ensure that food contact materials are safe and do not adversely affect the safety or quality of food. Regulation (***) No. ***/****: define requirements in the production of organic food products, including confectionery.

6.1 Segmentation

• Ferrero
• Perfetti Van Melle
• Elah Dufour
• Sperlari
• Ambrosoli
• Fida