MARKET ENTRY

MARKET

ENTRY

In general, children and young adults seeking a sugar rush like no other will continue to serve as the main consumer demographic for these products.

CONFECTIONARY INDUSTRY IN SWEDEN

As reported by Globe Newswire, the “global chocolate confectionary market is expected to grow from USD 135.8 billion in 2020 to reach USD 161.1 billion by 2026 at a 3% annual CAGR growth during forecast period of 2021 – 2026.” The growing availability of different varieties of confectionary products, both chocolate and non-chocolate, has led to the high demand for confectionary products fueled by the impulsive purchase behavior of consumers.

Candy products have acquired a prominent place in households across the globe due to COVID-19 lockdown implementations and lockdown extensions. The preference for sweet indulgence has increased due to more consumers working from home. Furthermore, the change in traditional patterns of food consumption may also open a pathway for innovation across the candy market across the globe as countries are recovering from the impact of the global pandemic.

What are the most prominent trends in the Confectionary Industry? These are the key trends expected to drive the candy industry in the years to come, namely:

Candy Companies increasingly focus on Novelties: for non-chocolate confectionery producers in particular, novel experiences will serve as a propellant for growth. Producers of these candies are expected to emphasize fun, more flavourful products to catch consumers’ eyes and dollars. Wellness Trends: manufacturers of chocolate and non-chocolate confectioneries alike are keeping an eye on growing consumer affinity for health and wellness lifestyle trends. To that end, producers are shifting toward recipes that employ more natural and organic ingredients, in addition to eliminating GMOs, artificial additives, and high fructose corn syrup. Furthermore, candy companies are expected to incorporate more nutritious add-ins like nuts, seeds, and fruits to appeal to older, more healthconscious demographics.

Eco-Conscious Consumers/Sustainable Initiatives: in addition to higher quality ingredients, consumers are increasingly eco-conscious and looking for improved transparency and sustainability in the food production and supply chain, and confectioneries are no exception. Some major candy companies have taken note and adapted their sustainability strategies to address these concerns, including Mars, Hershey, and Mondelez.

New Flavours: Today’s consumer is more adventurous than ever, constantly seeking new culinary experiences. When it comes to candy, fruit flavours reign supreme right now. Fruit flavours offer a great way to experiment with new tastes because there’s always a new fruit arriving on the scene to try. Raspberry is an old favourite that’s on the rise alongside newer additions to the fruit sector such as yuzu and dragon fruit.

What’s Sweden Candy Consumption? Sweden has the highest candy consumption per capita in the world -about 35 pounds per person per year.

That means that the average Swede eats over half a pound of candy every week. On average a normal family of two parents and two children eat 1.2 kilos of candy every week. Moreover, not only Sweden is the country that consumes more candy than any other major country in the world but it is also a great candy importer.

The per capita consumption of chocolate and confectionary in Sweden has evolved over the years.

In 2018, the per capita consumption volume of chocolate and confectionary was nearly 15 kilograms in Sweden. By comparison, in 2012, more than 17 kilograms of chocolate and confectionary per capita were consumed.

Since that year, the total consumption volume of chocolate and confectionary in the country decreased generally with some ups and downs. According to preliminary figures for 2018, it amounted to roughly 150 thousand metric tons, while in 2019 the consumption volume of chocolate and confectionery in Sweden amounted to 155.6 thousand metric tons.

Cultural facts about Sweden and their “candy culture” The huge amount of confectionary consumed by Swedes would suggest they have a strong candy culture and, indeed, they have special celebrations for candies. “Lördagsgodis” is a Swedish word that means “Saturday candy” and this is a national holiday.

The thinking in Sweden is that, in order to limit candy consumption, they would dedicate an entire day every week to eating candy, so that people would eat candy only once a week rather than daily. As a result, that one day is chock-full of sweet treats. Every Saturday, corner stores and supermarkets have bins filled with mixed candies for people to choose from. This tradition isn’t just limited to children, in fact, adults of all ages join in on the sweet fun and indulge their sweet tooth every week as well. Moreover, Swedes have an individualised approach to candy selection meaning that their candy choice is mostly influenced by their mood and weather. Lack of sun, especially during winters, make Swedes eat more sugar as well as coffee.

How to Access the Confectionary Industry in Sweden? In Sweden, the main sales channels for confectionary are hypermarkets and supermarkets which account for half of all sales, and convenience stores that account for 28% of all confectionary sales.

When it comes to attracting buyers, Swedes may be very picky especially regarding chocolate. If it is a new brand, they may be hesitant to buy it because the customers are not familiar. So, finding a way for your brand to be known and adapt to the Swedish market is essential. This is best done in a store check visit to Sweden, along with market research, a market entry plan, and social media targeted for the market. Moreover, to be successful in the Swedish market, unique product offerings are vital.

For the chocolate market in Sweden, the most common chocolate is traditional chocolate bars, while the pralines market is very small. There are many small craft producers of pralines in Sweden, but they do not produce in large volumes. Overall, there is also an opportunity for private labelling, if your company can offer large quantities.