The confectionery market has grown 4.3% in value to £3.6bn [TNS Fused Panel 52 w/e June 19, 2005). This equates to an extra £3 spent on confectionery by the average household.
Growth, however, was driven by boxed chocolates and seasonal novelties rather than countlines, which fell 1.5%.
Secretary of state for education Ruth Kelly has announced plans to ban crisps, chocolate and fizzy drinks from school vending machines by next September, which could further hit sales of countlines. Mints, medicated confectionery and toffees also performed badly, dropping 5.3%, 7.2% and 4.4% respectively.
Manufacturers have been more innovative in the past year. Nestlé Rowntree has launched 30 new products since January, while Cadbury has launched a flurry of products to coincide with Dairy Milk’s centenary.
Sales of sugar candy also benefited from innovation, with sales rising 7.9%, led by the introduction of brands such as Bassett’s Fruit Allsorts and Fruity and Milky Babies.
Own-label confectionery has been a hit, outperforming the market to grow by 7.7%. Waitrose, Asda and Sainsbury all plan to add to their lines.