Sweet for the Taking

STRONGER economic growth in emerging markets boosted the performance of key indulgence categories, like chocolate confectionery and functional gum, which  command higher unit prices and are particularly sensitive to an improvement in the economic climate.

Gum Start to Bounce Back

Innova reports that after some difficult years, there are now signs that the chewing gum sector is starting to recover, with rising launch numbers and some success in terms of product activity over the past year or so. Most notable are lifestyle products, particularly sugar-free, mouth-freshening gums, and in convenient formats designed to appeal through groundbreaking flavours, packaging and graphics.

This health trend is driving gum sales worldwide, including in Saudi Arabia. Retail volume sales of gum are projected to grow by around 20% over 2009-2014  in the Kingdom, according to Euromonitor International. Rising health  awareness and gradual economic recovery will drive demand for health-oriented  gum formats, particularly functional and sugar-free lines. Research shows that functional and sugarfree gum demand was driven by rising awareness of its oral health benefits among adults and children.

Candy Land

Sales of children's confectionery are also benefiting from economic recovery  in emerging markets. Although confectionery targeting children is difficult to define as a category in its own right – after all, many confectionery products are consumed by adults and children alike – some categories, like pastilles, gums, jellies and chews, boiled sweets and chocolate with toys, are mostly targeted at children. "Children generally determine the way these  products are marketed, the nature and direction of innovation as well as local and global distribution patterns," according to a Euromonitor analyst insight.

According to Euromonitor's findings, child-orientated sugar-free variants gums and chews will be an area of considerable potential in Saudi Arabia – a  trend which will be both consumer- and supplierdriven. Examples of such  products are Extra For Kids from The Wrigley Co Ltd.

Turkey is one such emerging market where confectionery for children will benefit from economic recovery. Sales of pastilles, gums, jellies and chews are projected to grow by 7% in retail volume terms in 2010 in Turkey, according to Euromonitor International's estimates. New lines introduced in  the market will benefit from the gradual improvement in economic prospects for Turkish consumers, who will increase their expenditure on indulgence products.

Worldwide Launches

Worldwide launches are harbingers of what products will be in shops and shelves. Iin the chocolate confectionery market, brand extensions continue to  dominate activity, with Nestlé's Kit Kat particularly active globally with launches ranging from a candied sweet potato Kit Kat variant in Japan; a boxed Kit Kat Singles variant in Germany and a range of Kit Kat Chunky 3 variants in Australia.

Bite-size chocolates are also featuring strongly. The sharing bags concept is  also being heavily exploited in a number of countries.

Lu Ann Williams, research manager at Innova Market Insights, concludes, "The  strong product and promotional activity seen in the confectionery sector in the first half of 2011 looks set to continue. The demand for small and relatively inexpensive snacks and 'treats' seems unlikely to be radically inhibited by consumer concerns over their finances, or indeed over health and  obesityNew Balance Laufschuhe und Bekleidung online kaufen