CANDIES

PRODUCTION

The total market for candy and gum is approaching 239,880 tonnes, worth more than 684.9 million euros. In the domestic market, sales are around 111,530 tonnes and slightly less than 437.3 million euros. Internal claims account for 46.5% of all sales in volume and 63.8% in value. Entry into new international markets, diversification of presentations, clear prioritization of adult audiences and permanent innovation are the main strategies of large manufacturers in the sector to maintain their activity levels. Sugar-free gum is the main item in the national market, accounting for 48% of all sales. Next, the hard candies (26%), followed by soft candies (23%) and sugar gums (3%). Among the sugar-free chewing gum, the most popular are mint (30.1% of all sales in value), followed by chlorophyll and grass (27.9%) and strawberry (20.1%) . All other flavors account for the remaining 21.9%. The sales of candy in the free-of-service reached during 2014 to 21,580 tons, for a value of 170.7 million euros. These figures indicate slight increases of 0.5% in volume and 0.6% in value compared to the figures for the previous year. The most important item is that of rubber candies, with 45.5% of all sales in volume and 37.5% in value. Balsamic candies (13.2% and 16.3% respectively), regalices (12.8% and 9.7%), tablets (0.7% and 6.6%), caramels (3.2% and 5.3%), sticky candies (2.1% and 3.7%), marshmallows (4% and 3%), toffees (3.2% and 5.3%), , 5%) and toys (0.4% and 1.6%). All other types of candy represent the remaining 12.2% by volume and 9.5% by value.

BUSINESS STRUCTURE

The concentration and preponderance of large multinational groups are the two most characteristic features of the structure of the sector of manufacturers and marketers of candy and gum in our country. The main company in the sector has a turnover of 91.1 million euros per year, while the second one reaches 64 million euros, the third is close to 61 million euros, the fourth round is 45 million euros and Fifth reaches 40 million euros. Among the candies, distribution brands accounted for 33.3% of all sales in volume and 23.7% in value. The first Marquist offer presents a percentage of 15.7% and 16.6% respectively, while the second represents 9.4% in volume and 12.6% in value and the third round is 3.6% and 12%. In the case of sugar-free gum, white brands control 23.8% of all sales in value. In Spain there are around 100 manufacturers and marketers of sweets and candy, with a joint workforce of around 4,000 workers. A third of these companies are located in Catalonia, followed by Madrid, Comunidad Valenciana and Murcia, with a combined percentage of another 33%. The top ten companies in the sector account for 70% of all sales, while the top five have a combined share of 53%. The difficult situation of the domestic market, with declines in sales of the most classic presentations, have led to the closure of some production plants and the firm commitment to foreign trade, as the main business possibility for the main manufacturers in the sector.

COMMERCIAL DISTRIBUTION

The most original feature of the distribution of chewing gum and candy in Spain is the existence of the “impulse” channel formed by around 300,000 small establishments, including kiosks, weight shops, bakeries, special machines in cafes and bars , Tobacconists, markets, etc., and has had, and to a large extent still has a great importance in the sale of these products. The truth is that in recent years, the large distribution has been scraping market shares in the sale of gum and candy and, currently, appears as the main channel in the marketing of these offers. About 600 distribution companies are active in supplying all the impulse channel’s small points of sale. Most of these companies are small in size, with only six having sales volumes exceeding 6 million euros per year. In the case of candy, the impulse channel accounts for 45.6% of all sales. Next, supermarkets, with a market share of 31.7%, hypermarkets (6.6%) and service stations (6%). All other commercial channels represent the remaining 10.1%. As far as chewing gum is concerned, supermarkets already appear as the main establishments in their commercialization, with 37.8% of the total, followed by the impulse channel establishments (25%), service stations (12.2% %) And hypermarkets (8.7%). Other establishments represent an additional share of 16.3%.

CONSUMPTION

In Spain candy is consumed for a value slightly above 17.5 euros per person per year. The European countries with higher consumption of candy are Norway and the United Kingdom, with 71 euros and 37 euros per capita respectively. Italy also has slightly higher consumption levels, with € 18 per person per year, while France, € 15.1, Portugal (€ 12.7) and Greece (€ 4, 3 euros). In the case of chewing gum, Spanish consumption barely reaches 7 euros per person per year. The highest consumption levels are concentrated in households with adult children, couples with no children and among housewives over 44 years of age. The most significant change in the profile of consumers of gum and candy in our country has been the emergence of an adult audience as a key segment in explaining the increase in demands in recent years. Although the current crisis seems to have led to a certain slowdown in this trend, the presentations directed at those consumers have been more dynamic in recent years.

FOREIGN TRADE

The greater dynamism of the gum and candy sector is concentrated in export movements. According to the association PRODULCE, exports reached in the last financial year computed to 128,350 tons for a value close to 247.7 million euros. These figures represent significant inter-annual increases of 6.1% in volume and 8.1% in value. At present, exports account for 53.5% of all volume sales and 36.2% of their value. The main target market for this foreign trade is France, where 29.9% of all sales abroad are directed. Portugal (10.1%), the United Kingdom (9.6%), Germany (7.1%), Italy (6.3%), the Netherlands (5.7%) and the United States 7%). Among the remaining 27.6% are Colombia, Canada, China, Russia and several Arab countries. Exports are key to the main groups in the sector. Foreign sales represent between 87% and 50% of its total turnover among the top ten manufacturers in our country. Imports are less important and are around 8,000 tonnes, worth about 55 million euros. Taking into account the imported volumes, the most important item is the gum, with 43, 1% of the total. Next are the caramels (34.8%), those of cooked sugar (17.5%) and balsamic (4.6%). Poland ranks first among suppliers of gum and candy for the Spanish market, with 27.5% of the total. Next, Germany (16.9%), France (14.4%), the Netherlands (11%), China (4.4%) and the Czech Republic (3.8%).

About the author

Montse Gonzalez