Sector Trend Analysis - Sugar Confectionery In Belgium

January 2017

Contents

• Executive Summary
• Consumer Attitudes and Economic Drivers
• Retail Sales
• New Sugar Confectionery Products
• Distribution Channels
• New Product Examples
• Tarrif Schedule
• Conclusion
• For More Information
• Resources

• United States dollar (US$)
• Compound Annual Growth Rate (CAGR)
• Harmonized System (HS)
• Global New Products Database (GNPD)

Executive summary

This report brings together consumer insight and market data to provide a comprehensive brief of the sugar confectionery sector in Belgium to Canadian exporters. This allows for the rapid identification of key growth opportunities across major sugar confectionery categories. It also provides market share of the key distribution channels. Finaly, the report includes brand share data of the Confectionery market in Belgium.

Currently, imports of sugar confectionery into the European Union (E.U.) face tariffs starting at 6.2%. Canadian sugar confectionery exports will enter the E.U. duty free immediately upon entry into force of the Comprehensive Economic and Trade Agreement (CETA). Under CETA, certain exports of Canadian sugar confectionery will also have access to Origin Quotas (which provide more liberal rules of origin), including an Origin Quota of 10,000 tonnes for Sugar Confectionery and Chocolate Preparations such as bubble gum, sugar candies, and chocolate confectionery.

According to Euromonitor, the Belgian sugar confectionery sector reached US$317.4 million in 2015. This represents 7.9% growth or US$23.1 million since 2010. In the forecast, the sugar confectionery sector is predicted to reach close to US$325.1 million by 2021, with an estimated growth of 1.8%. High growth categories in the forecast include medicated confectionery, mints losanges and pastilles, gums, jellies and chews.   

Consumer attitudes and economic drivers

As in other European countries, the population in Belgium is aging, which is having a major impact on consumption trends. People in Belgium are expected to continue to live longer, while birth rates are expected to continue to decline. Another particularity of the Belgian market is that the number of single-person households is expected to increase.

According to Euromonitor, the purchasing habits of the Belgian consumers are becoming more in line with the rest of European nations, and this is reflected in the increased demand for indulgence and luxury products, including confectionery items.

While pleasure, indulgence and impulse remain key demand drivers for sugar confectionery in Belgium, the importance of on-the-go consumption is paradigm for the sector. Furthermore, smaller portions do not only drive value, they also give manufacturers significant room for innovation and new products introduction.

While manufacturers focus on new launches of sugar-free products, interest in gluten-free sugar confectionery increased in 2016. The gluten-free segment is still a niche; however, it is set to grow rapidly according to Euromonitor.

Retail sales

Sugar confectionery in Belgium saw several new launches in 2015. At the same time, the category's growth potential was negatively affected by increasing health concerns and rising obesity. As a result, sugar confectionery posted only moderate current value growth of 1% in 2015, while volume sales remained flat.

Euromonitor forecast that the sugar confectionery volume sales are likely to stay static over the 2016 to 2021 period. However, pleasure-seeking and health and wellness products will become increasingly appealing and indicate margin for growth for sugar confectionery, especially in terms of retail value sales.

While Euromonitor data shows slow volume growth in the Belgian market, the values are still reporting modest growth indicating a move to higher priced products.

Globally, consumers are becoming ever more demanding of their sweets. Belgian consumers want premium indulgence with health benefits. Manufacturers are certainly eager to add value to their products, but while some of their health and wellness-oriented offerings enjoy global appeal, others remain confined to niche markets.

New sugar confectionery products in Belgium

From January 2010 to December 2015, there were 286 sugar confectionery new products launched in Belgium. The number of sugar confectionery new product introduction in Belgium has fluctuated over the last five years, and has increased in 2015 to a high of 66 new products. In 2010, 32 new product were launches.

New sugar confectionery products launches by year, from January 2010 to December 2015

New product launches (year)

• 32 (2010)
• 35 (2011)
• 50 (2012)
• 54 (2013)
• 49 (2014)
• 66 (2015)

Source: Mintel Global New Products Database (GNPD), 2016

In 2015, the low/no/reduced allergen and gluten-free claims saw the largest number of new product introductions with ten new products for each claim. The “low/no/reduced sugar”, “age group specific” and “no additives/preservatives” claims includs five new products each. These 5 claims represented 53% of all sugar confectionery launches in 2015.

Increasing concerns regarding sugar consumption may have an impact on sugar confectionery. However, sugar-free products, medicated confectionery and mints are expected to grow steadily.

As Belgian consumers become more health-conscious, the development of broader sugar-free offerings will be very important for the success of sugar confectionery. Gluten-free sugar confectionery is also attracting an increasing demand, and represents an interesting growth driver for manufacturers.

When it comes to new flavours and ingredients, Belgian consumers are fairly conservative, traditional flavours remain popular in Belgium, with fruit varieties dominating the market, followed by mint and strawberry.

The price growth rate has been slow and modest, but remained in positive territory because these products can deliver on indulgency at a modest price.

Distribution channels

The purchase of sugar confectionery relies on classic impulse triggers. Almost three out of four consumers admit to buying the sugar confectionery on impulse, thus at the point-of-sale indicating that the product visibility and strategic in-store positioning are paramount.

The internet-retailing channel accounted for just 3% of sugar confectionery's total retail value sales in 2016. However, the importance of the internet-retailing channel is growing rapidly.

New Sugar Confectionery Products Launches by Branded vs Private Label, from January 2010 to December 2015

New product launches (year)

• Branded 32, Private label 0 (2010)
• Branded 34, Private label 1 (2010)
• Branded 47, Private label 3 (2010)
• Branded 47, Private label 7 (2010)
• Branded 42, Private label 7 (2010)
• Branded 59, Private label 7 (2010)

Source: Mintel GNPD, 2016

In Belgium, premium brands strive for innovation with products that are mainly geared to adults and young adults demographics, while value for money brands focus on younger target groups, with products such as lollipops and boiled sweets.

Discounters' private label products, in particular, experienced steady growth in 2015 and projected to increase even more 2016 as their low prices and strong promotions proved to be very attractive to low- to middle-income households according to Mintel.

New Product Examples

• Orange Flavoured Boiled Sweets
  • Product description: Napoleon Sinaspur Orange (orange flavoured boiled sweets) is an orange flavoured candy layered with sherbet powder
  • Company: Confiserie Napoleon
  • Brand: Napoleon
  • Category: Sugar & Gum Confectionery
  • Sub-Category: Boiled Sweets
  • Country: Belgium
  • Store name: AD Delhaize
  • Date published: Dec 2015
  • Launch type: New Variety/Range Extension
  • Price in US$ : 2.09
• Sugar-Free Mini Mints
  • Product description: Mentos NOWmints Micro-confiserie (sugar-free mini mints) has a sweet mint flavour. It retails in a 18g pack.
  • Company: Perfetti Van Melle
  • Brand: Mentos NOWmints
  • Category: Sugar & Gum Confectionery
  • Sub-Category: Standard & Power Mints
  • Country: Belgium
  • Store name: AD Delhaize
  • Launch type: New Product
  • Price in US$: 1.83
• Handcrafted Belgian Cuberdon
  • Product description: Sweet Cuberdons (Handcrafted belgian cuberdon) is typical cone-shaped Belgian candy with a slightly firm exterior and very smooth heart.
  • Company: Les Bonbons à l'Ancienne
  • Brand: Sweet Cuberdons
  • Category: Sugar & Gum Confectionery
  • Sub-Category: Other Sugar Confectionery
  • Country: Belgium
  • Country of manufacture: Belgium
  • Launch type: New Product
  • Price in US$: 4.38
• Mixed Assortment Confectionery Sweets
  • Product description: Look O Look mixed assortment confectionery sweets are potato chip shaped candy.
  • Company: Look-O-Look
  • Brand: Look O Look
  • Category: Sugar & Gum Confectionery
  • Sub-Category: Mixed Assortments
  • Country: Belgium
  • Launch type: New Variety/Range Extension
  • Price in US$: 2.52
• Digestive Sugar-Free Mints
  • Product description: Dills Pastilles à la Menthe sans Sucre (Digestive Sugar-Free Mints) have been repackaged with a new design. The product is said to make things digestible, and retails in a pack containing two 15g units.
  • Company: DILLS
  • Distributor: DILLS
  • Brand: Dills
  • Category: Sugar & Gum Confectionery
  • Sub-Category: Standard & Power Mints
  • Country: Belgium
  • Country of manufacture: Belgium
  • Launch type: New Packaging
  • Price in US$: 3.78

Tariff schedule

Please note: Certain sugar confectionery goods are subject to additional European Union (EU) tariffs determined on the basis of the content of milkfat, milk proteins, sucrose, invert sugar, isoglucose, glucose and/or starch of the products.

Conclusion

It is likely that Belgian confectionery sector will continue to be interested in innovative sugar confectionery products with added benefits. More and more Belgian consumers are willing to pay a premium price for quality food with healthy ingredients and especially impulse products, as these consumers are increasingly interested in their health. This makes Belgium a potentially attractive market for Canadian exporters of high-quality sugar confectionery products.

Euromonitor data indicates that opportunities for Canadian confectionery products may reside with products focused on health-related positioning, such as naturalness (organic or no additives and preservatives) and purity (simple and clear ingredient lists with limited or no chemicals added).

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Overview of Trade Commissioner Services in Belgium
• Find a Trade Commissioner

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found under Statistics and Market Information at the following link, arranged by sector and region of interest:

• Agri-Food Trade Service

Resources

• Euromonitor International, 2016. Consumer Lifestyles in Belgium.
• Euromonitor International, 2016. Sugar Confectionery in Belgium.
• Mintel Global New Products Database, 2016.
• European Union (EU) regulations:eur-lex.europa.eu/

Sector Trend Analysis: Confectionery in Belgium
Global Analysis Report
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