Growth In Snacks Industry Slowed Down In 2015

Tuesday, July 12th, 2016 | 687 Views

New research by Euromonitor showed that global snacks growth was at its lowest levels since 2008 last year, with an increased by just 1.7 percent in retail value. Confectionery, which is the largest sector in snacks, grew by the smallest amount at one percent.

Sugar confectionery barely registered positive sales, while gum continued to decline as chewing habits fade. Chocolate confectionery however, registered a two-percent increase.

Looking at regions, Latin America climbed just 0.3 percent, a figure that can be attributed to sizeable economic and political problems in three of the traditionally largest snacks markets: Brazil, Argentina and Venezuela. China also faced a dramatic slowdown with a contraction in 2015 and only marginally recovering in 2016.

Meanwhile, processed fruit snacks and fruit and nut bars registered a growth in developed markets. “With sweet snacks such as confectionery continually linked by the media to childhood obesity and other diseases, consumers are increasingly aware of their own recommended sugar intake levels and what sweet snacks contribute to that,” said Lamine Lahouasnia, head of packaged food at Euromonitor. “This has proven to be one of the biggest barriers to growth for sweet snacks categories in developed markets.”

However, she noted that the future for the snacks industry looks much brighter than the present, with annual growth expected to return to 2 percent from 2017. The recovery, she explained, will be driven by a return to stability in Latin America and an expected rebound in growth within the Chinese market, which has been creating a considerable lag on world growth.

“In emerging markets, we should expect improved snacks distribution to aid growth. In developed markets, the shift towards higher end, ‘naturally healthier’ alternative snacks should deliver greater value for brands,” Ms Lahouasnia added.