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Sugar Confectionery in Brazil

Brazil sugar confectionery market: 2% CAGR between 2012-2017


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2014-03-12 00:25:01 - Sugar Confectionery in Brazil - a new market research report on companiesandmarkets.com

The Brazil sugar confectionery market is highly fragmented, but the top five companies recorded significant growth, from 36% in 2007 to 39% in 2011 in value share. Investments in expansion of capacity production, machinery, innovative products, and effective distribution networks throughout Brazil are key strategies adopted by leading players to hold and improve their positions.

In the last two years of the review period, sugar confectionery witnessed a decline in volume terms, while registered a positive performance during the review period. In 2012, the category is set to experience a decline of 2% in volume terms, but it increased by a CAGR of 3% over the review period. In part, such a poor performance can be credited by the increased purchasing

 

 

power among low-income consumers, who are moving away from sugar confectionery to chocolate confectionary.

Manufacturers are expected to face difficult challenges over the forecast period. Sugar confectionery is expected to record a marginal decline in volume terms and a constant value CAGR of 2% over the forecast period. With increasing purchasing power among low-income consumers, it is expected that such consumers will continue switching from sugar to chocolate confectionery in the near future.

Key Headlines

- Sugar confectionery is set to decline by 2% in volume terms, but will grow by 5% in current value terms to reach R$7.7 billion in 2012
- Rising sugar costs impact on prices during the year
- Toffees, caramels and nougat records is predicted to record the fastest current value growth of 17% in 2012
- Top five companies in sugar confectionery account for 39% in 2011
- Sugar confectionery is expected to grow by a constant value CAGR of 2% over the forecast period

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Mike King
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