Sector Trends Analysis – Confectionary trends in Germany

Market overview

Confectionary sales increased by 3.2% annually over the 2019 to 2023 period. All categories saw sales grow over 2019 to 2023 except gum, which saw zero growth. Toffees, caramels and nougat and medicated confectionary sales grew the fastest over 2019 to 2023. Sales of lollipops, confectionery subcategories are expected to rebound over the next five years by 3.3%. Within chocolate confectionery, sales of seasonal chocolate is forecast to grow the most by 4.5% annually over 2023 to 2027. Sales of sugar confectionery is expected to grow 4.3% and gum by 3.9% annually.

According to Euromonitor, the pandemic period was challenging for confectionery sales in Germany. Not all snacks benefited from larger shopping trips to supermarkets and discounters, while less mobility and children staying home from school dampened overall retail demand in 2020, followed by marginal improvements in 2021 and 2022. Although unit prices will increase, increased costs will not necessarily deter consumers from seeking out these novelties. Premium offerings will be entirely justifiable as buying power increases for those who still seek out sugary treats.

At the channel level, the push by e-commerce towards convenience and instant fulfilment has placed confectionery in more virtual carts, with many delivery services translating the lessons of an impulse purchase strategy in traditional retail to their services' checkout experience. So-called quick commerce players, such as Flink or Gorillas, offer an opportunity to increase number of Germans to use e-commerce platforms of leading supermarkets and spend less time at offline checkouts.

Chocolate confectionary

Chocolate confectionary in Germany has grown steadily over the past five years by 3.3% annually over 2019 to 2023. Sales of countlines and seasonal chocolates increased fastest by 4.6% and 4.5% annually. According to Euromonitor, during pandemic related restrictions in 2020 and 2021, German consumers purchased higher volumes of food from supermarkets and discounters, including chocolate confectionery as an indulgent treat. At-home consumption increased, with fewer Germans travelling, going to school or driving to work. 2022 was the first full year of eased restrictions, which allowed for greater mobility outside of the home. Sales of seasonal chocolate, chocolate with toys, and chocolate in pouches or bags are expected to continuing to grow faster over 2024 to 2028 with demand remaining above pre-pandemic levels.

While classic types of chocolate tablets, such as plain dark or white, in addition to those containing nuts remain popular with Germans, brands are still experimenting with new flavours to create excitement in the category. These include matcha, which has gained in popularity and is used by brands such as Kit Kat or Holy Chocolate.

Sustainability is a trend impacting chocolate confectionary in Germany, such as plant-based and vegan claims, especially among younger consumers. Younger German consumers are increasingly questioning the production methods of players and less than transparent practices, including maltreatment of workers that can easily lead to a loss of trust. Claims that are printed on a bar of chocolate confectionery may even lose importance for many consumers because an increasing number of Germans now track this information themselves with dedicated apps, in an attempt to identify how trustworthy a product or brand is. These factors are especially relevant to the premium segment, where sustainability is often considered mandatory.

Sugar confectionary

Sugar confectionary sales increased by 3.6% annually over 2019 to 2023 with all categories seeing sales growth. Sales are expected to grow by 2.3% over 2024 to 2028. Sugar confectionary sales growth has partly been driven by rising prices due to higher input costs, in particular, sugar.

According to Euromonitor, the triple impact of the flu, RSV, and COVID-19 in 2022 drove sales growth in medicated confectionery, such as cough drops. With the normalisation of in-person work and social occasions, medicated confectionery is expected to continue its growth by 4.6% over 2024 to 2028 with the transition to an endemic perception of COVID-19. Mints sales are also benefiting from more frequent social interactions and the need to freshen one's breath.

In addition to higher prices, German consumers' consciousness over quality and craftsmanship is driving demand for higher-end options, especially once the cost of living crisis ends. As German consumers already appreciate fine foods and artisanal products, this niche segment has the potential to thrive and provide a range of high quality options. This trend could lead to the development of luxurious and gourmet sugar confectionery, featuring premium ingredients, packaging, and unique flavours that cater to those seeking a more elevated and sophisticated confectionery experience.

Sugar confectionery brands are aligning with Germans' growing demand for ethical and sustainable food claims, such as veganism. Brands such as Trolli and Nimm 2 are introducing vegan-friendly options for consumers following a plant-based diet by reformulating their recipes to exclude animal products as many sugar confectionery products traditionally contain animal-derived ingredients such as gelatine.

Trolli, known for its gummies, has launched a range of vegan options that are free from gelatine and other animal-based ingredients, whilst retaining the same flavours and textures. Nimm 2, popular for its fruit-based confectionery with a soft chewy centre, has also introduced vegan versions.

Gum

Gum recorded zero sales growth over 2018 to 2022 with the mask mandate and restrictions on outdoor activities during the COVID-19 outbreak being the main factors. Home seclusion during the pandemic led to lower uptake of gum in Germany, as gum is usually purchased spontaneously for freshening breath for social interactions. Retail gum sales are expected to rebound over 2024 to 2028, however, demand remains below 2019 levels, and is likely to take longer to recover. This is due to remote/hybrid working models that some employees have adopted in Germany, reducing impulse purchases outside of the home.

Leading claims in chewing gum are focused on health and sustainability, including those promoting dental care, sustainable production and packaging. In recent years, the broad topic of sustainability has also been added. This is served by brands, such as Forest Gum, which focuses on plant-based ingredients.

According to Euromonitor, Wrigley's announced in 2023 the stop in production of gum strips for the German market in favour of the dragee format, which impacts brands Extra, Spearmint and Juicy Fruit. Despite being well established in Germany, the format is losing popularity due to its association with sugar gum. Some brands are attempting to revive the image of strips with new marketing strategies but are also exploring other formats, such as those created by Tic Tac or Mentos. The further development of other formats represent an opportunity to stand out amongst the now standard option of dragees.

Retail channels

Over 2019 to 2023, e-commerce showed the highest growth and is expected to continue growing at the expense of retail offline channels. Offline channels, which accounted for almost 100% of total sales in 2023, experienced growth of 3.2% in annual sales, while e-commerce saw a 27.7% annual increase in sales. Discounters was the fastest growing offline channel at 5.2% annually over 2019 to 2023.

New product launches

A total of 6,594 new confectionary products were introduced over the 2018 to 2022 period. Top claims were ethically based and nutritionally focused, such as "sustainable", environmentally friendly", and "no/low" claims, which suggests that consumers prefer ethical and healthy confectionary. Top flavours included plain, hazelnut, and milk.

New product examples

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Resources

• Euromonitor International:
  • Chocolate confectionary in Germany (July 2023)
  • Gum in Germany (July 2023)
  • Sugar confectionary in Germany (July 2023)
• Mintel Global New Products Database, 2023

Sector Trends Analysis – Confectionary trends in Germany
Global Analysis Report

Prepared by: Kris Clipsham, Market Analyst

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