Customized Report Service – Sugars and other sweetener trends in Europe

Trade overview

In 2018, European imports of sugars and sugar confectionery from the world totaled US$13.9 billion. Top European importers from the world were Germany, the United Kingdom and the Netherlands. In turn, top suppliers to Europe of sugar and confectionery products were domestic partners including Germany, France and the Netherlands.

Canada's imports to Europe totaled a 1.0% market value share when compared amongst suppliers from the world at a total of US$76.1 million in 2018.

In 2018, European countries imported 18.7% of its sugars and sugar confectionery products supply from non-EU28 countries. Top European countries importing these sugar products from non-EU28 suppliers were the United Kingdom, totaling US$379.6 million, followed by Russia (US$238.3 million) and Germany (US$226.6 million). Top non-EU28 suppliers to all of Europe were Brazil at an export value of US$275.8 million, followed by Turkey (US$215.1) and Russia (US$202.2 million).

In 2018, Canada's sugars and sugar confectionery imports to Europe slightly improved to a 2.9% market value share, when considering the share amongst non-EU suppliers. Canada's import position as a supplier of these sugar products to Europe was highest within Germany (10.7%), the UK (4.3%), and Turkey (4.2%). Canada imported a total value of US$24.3 million to Germany, US$16.5 million to the UK, and US$4.2 million to Turkey in 2018.

Retail sales by category - top 5 European markets

In 2018, retail sales of sugar confectionery food products in the EU totaled US$18.3 billion. This food segment category consists of caramels and toffees, gums and jellies, hard boiled sweets, liquorice, lollipops, mints, medicated confectionery and other sugar confectionery products. Sugar confectionery products have been growing at a compound annual growth rate (CAGR) of 3.2% between 2014 and 2017 and is expected to grow at a CAGR of 3.6% from 2018-21 throughout Europe.

Top European markets for these sugarised or sugar free food products were Germany, the UK, Italy, Spain and France. In 2018, Germany had the largest sales at US$3.3 billion, followed by the UK at US$2.0 billion.

In 2018, retail sales of health and wellness (HW) products that have possible added/reduced sugar as an ingredient claim and displaying either diabetic/dietetic or weight management consumer benefit attributes in the EU totaled US$9.1 billion.

The UK was the largest market within the HW (reduced sugar) packaged food category throughout Europe with retail sales of US$1.6 billion in 2018, followed by Germany at US$1.4 billion. The sales of these HW sugar products throughout the EU were mainly distributed from within the HW sugar confectionery, chocolate and gum category (63.3%), followed by HW bakery and cereal goods (31.0%) and the remaining 5.7% products were from within the HW ice cream, seasonings, dressings and sauces, and HW syrups and spreads categories.

The UK was also, the largest market within the HW (reduced sugar) packaged food category throughout Europe with US$5.9 billion in 2018, followed by Germany at US4.3 billion. Notably, Belgium at US$891.5 million, Norway at US$877.0 million and Italy at US$837.1 million are also strong contenders in the retail sales of HW reduced sugar non-alcoholic beverage sector.

In 2018, HW diabetic/dietetic/weight management carbonates make up 79.9% of the non-alcoholic beverage market throughout the EU at US$18.8 billion. Other popular categories include HW iced / ready-to-drink (RTD) tea drinks (US$1.1 billion), HW squash/syrups (US$975.6 million) and HW still drinks (US$682.4 million).

Competitive landscape of health and wellness (reduced sugar) packaged food and beverage products

In 2018, top European markets in terms of retail sales value from within selected HW packaged food sectors that display diabetic/dietetic or weight management attribute health claims (reduced sugar) were the United Kingdom, Germany and France. Other top competitors within these EU markets, included Spain, Sweden, Poland, Czech Republic, and Turkey.

Among these European sales in 2018, 58.2% were from top confectionery companies such as Mars, Inc., Mondelez International, Inc., and Perfetti Van Melle SpA. Bakery and cereal companies represented 26.0% of the HW sales including Mondelez International, Inc., Cereal Partners Worldwide S.A, followed by syrups and spread companies at 2.6% (Agros - Nova, Whole Earth Foods) and ice cream companies at 1.8% (Unilever, Froneri International Ltd.). Notably, GlobalData, does not identify companies who produce reduced sugar products from within the HW seasonings, dressing and sauces sector.

In 2017, top European markets in the HW non-alcoholic beverage sector were the United Kingdom, Germany and Spain. Leading companies were Coca-Cola at 55.1% market value share (US$10.1 billion), PepsiCo at 19.7% share (US$3.6 billion), and Britvic at 3.6% share (US$664.6 million).

Product launch and trend analysisof natural sweetener food ingredient (isomalto-oligosaccharide)

Isomaltooligosaccharide (IMO), more commonly known as isomalto-oligosaccharide, is a natural sweetener and fiber food ingredient added to foods which contains digestible saccharides and has a "relative sweetness level equal to approximately 60% of sucrose."^{Footnote 1} BioNeutra is the manufacturer of VitaFiber IMO, which is a food ingredient naturally found in honey, miso, sake, and soy sauce that has been approved for addition to food by Health Canada in 2009 as a novel food. It can be added at a higher level to a variety of foods as a natural sweetener such as sugar confectionery (hard/soft candies), baked goods and mixes, syrups and spreads (jams and toppings), frozen dairy desserts and mixes (ice cream), seasonings/dressings and sauces (condiments, salad dressings, gravies, sweet sauces), meat and nut products, processed fruits and vegetables, and beverages and beverage bases.^{Footnote 1}

Mintel indicates that there were 233 new products containing IMO as an ingredient that were launched into the European retail market (including new variety/range extension, packaging, formulation or relaunched) between the period of January 2014 to December 2019. IMO products are a growing market, whereby among the 233 products launched throughout the last five years, over half (57.9%) were products newly introduced within the retail European market. In 2019, 59 new products were launched in comparison to 1 new product in 2014, 18 new products in 2015 and 12 new products in 2016. From January 2017 to December 2019, there has been a positive growth difference for new IMO product launches by 2.9% (from 15 to 59 new products).

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Year	Products containing isomalto-oligosaccharide
2014	15
2015	18
2016	15
2017	24
2018	51
2019 (January to December)	110
Total	233

Source: Mintel, 2020

The top European companies to launch new products from 2014-19, (including all launch types) were Barebells Functional Foods launching 135 products, Optimum Nutrition (19), and Nutramino (19). Top brands launched were Barebells, Quest Bar, Tyngre Barebells, and ON Optimum Nutrition.

Popular distribution channels for these products containing IMO were internet/mail orders (33.0%), supermarkets (24.9%), and mass merchandise/hypermarkets (14.6%). The largest sub-category was snack/cereal/energy bars by 87.6%, followed by meal replacers and other similar drinks at 4.3%, syrups (1.7%), hot cereals (1.3%), and dairy-based ice cream and frozen yogurt (1.3%).

Among these 233 European IMO products the top ingredient claims were soy derived (113), natural (77), source of dietary fibre (36), fat reduced (34), and sugar based (26). Top flavour blends were cookies and cream, chocolate, chocolate with brownie or coconut, and hazelnut and nougat/turron. These flavours were mostly from within flavour component groups such as sweet (147), seeds and nuts (75), fruit and vegetable (56), and from the bakery group (49).

These European products containing IMO most often came in a liquid, powder or cup/tub format type. The package types consisted of flexible, flexible stand-up pouches, tubs, bottles, cartons, and flexible stick-packs.

According to Mintel, top European markets that have launched new products over the last five years include the United Kingdom (52), Germany (38), Norway (31), Finland (28), and Sweden (22). The top and largest sub-category for all these countries were snack/cereal/energy bars by a 87.6% share, representing a combined total throughout Europe of 204 new products launched out of the 233 total sample size.

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• Snack/cereal/energy bars: 204 (87.6%)
• Meal replacements and other drinks: 10 (4.3%)
• Syrups: 4 (1.7%)
• Hot cereals: 3 (1.3%)
• Baking ingredients and mixes: 3 (1.3%)
• Dairy-based ice cream and frozen yogurts: 3 (1.3%)
• Non-individually wrapped chocolate pieces: 2 (0.9%)
• Sweet biscuits/cookies: 1 (0.4%)
• Dressings and vinegar: 1 (0.4%)
• Table sauces: 1 (0.4%)

Product examples

Cookies & Cream Flavour Protein Bar

Source: Mintel, 2020

Company	Optimum Nutrition/Glanbia Nutritionals
Brand	ON Optimum Nutrition Optimum
Sub-category	Snack/cereal/energy bars
Country	Manufactured in United Kingdom, not imported
Related claims	High/added protein, no added sugar
Store name/type	Internet/mail order
Launch type	New product
Date published	December 2019
Price in US dollars	25.65/box of 10 bars
Selected ingredients	Milk protein blend, fructooligosaccharides, sweetener (sorbitol, erythritol, sucralose), isomalooligosaccharide, antioxidant

ON Optimum Nutrition Optimum Cookies & Cream Flavour Protein Bar is described as a cookies and cream flavour protein bar in a dark chocolate coating with a chocolate caramel flavour layer, soy crispies and almond pieces, with sweeteners. It provides 20-gram (g) protein, contains no added sugars, and retails in a 620g pack containing 10 62g individually wrapped units. Also, available in caramel cookie, chocolate caramel, chocolate peanut butter, rocky road and marshmallow crisp flavour protein bars.

Chocolate Flavour Protein Truffles

Source: Mintel, 2020

Company	Body Attack Sports Nutrition
Brand	Body Attack Sports Nutrition
Sub-category	Non-individually wrapped chocolate pieces
Country	Market Germany
Related claims	High added protein, low/reduced sugar
Store name/type	Müller, drug store/pharmacy
Launch type	New variety/range extension
Date published	September 2019
Price in US dollars	2.89
Selected ingredients	Isomalto oligosaccharide syrup with tapioca starch, sweetener (sucralose)

The Eiweiß-Trüffel mit Vollmilchschokoladeüberzug (Chocolate Flavour Protein Truffles) are protein truffles with a whole milk chocolate coating that contain sugar and sweeteners, only 1.2g sugar per serving and 33% proteins. They retail in an 80g pack with eight portions.

Strawberry Flavoured Enriched Beverage

Source: Mintel, 2020

Company	Saturo Foods
Brand	Saturo
Sub-category	Meal replacements and other drinks
Country	Manufactured in Germany, not imported
Related claims	Vitamin/mineral fortified, gluten free, low/no/reduced allergen, high/added protein, high satiety, low/no/reduced lactose
Store name/type	Vitalabo.de, internet/mail order
Launch type	New product
Date published	September 2019
Price in US dollars	3.49
Selected ingredients	Isomaltulose, isomaltooligosaccharides, sweetener (sucralose)

Saturo Strawberry Ausgewogene Trinkmahlzeit (Strawberry Flavoured Enriched Beverage) is a ready-to-drink meal with 17% of daily nutrition. This plant-based drink with sweetener is high in protein, contains 27 vitamins and minerals, and is free from gluten and lactose. According to the manufacturer, one bottle equals one meal, and appeases hunger for two to three hours. The nutritionally complete food retails in a 330-millilitre (ml) pack with spout for easy pouring. Also, available in vanilla and chocolate flavoured enriched/fortified beverages.

Crackers with Tomatoes and Italian Herbs

Source: Mintel, 2020

Company	Royal Cake/Layfap
Brand	Royal Cake
Sub-category	Bakery/savoury biscuits/crackers
Country	Market Belarus
Related claims	No additives/preservatives, low/no/reduced carb, vegan/no animal ingredient
Store name/type	Yevroopt, internet/mail order
Launch type	New poduct
Date published	October 2019
Price in US dollars	2.13
Selected ingredients	Protein complex, isomaltooligosaccharides (dietary fibre)

The product contains pea, pumpkin and wheat protein, is low in carbohydrates and is suitable for fasting and for vegans. It is also free from sugar, colourings and preservatives, is said to help consumers keep fit with one cracker containing 20 calories, and retails in an 84g pack.

Definition

Europe

GlobalData reports food and beverage data on 24 to 25 European markets including Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Republic of Ireland, Romania, Russia, Slovak Republic, Spain, Sweden, Switzerland (beverages) Turkey, Ukraine, United Kingdom

Customized Report Service – Sugars and other sweetener trends in Europe
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

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