"Sustain your Business Growth from the Impact of COVID-19 Pandemic."
The COVID-19 outbreak is expected to negatively impact the confectionery market as the majority of the countries have resorted to lockdowns in order to control the spread of the disease.
As of 18th April 2020, the majority of the global population is under lockdown owing to the rapid spread of the disease. About 2.4 million confirmed cases and 165,229 deaths have been reported till date. The pandemic situation has led to a complete shutdown of various operations in the world. Many key industries are under the threat of a downfall in their sales. The food and beverage industry has a slight downfall in its sales owing to the complete lockdown of various countries. This has negatively impacted the confectionery market, as people are opting to buy only essential products such as instant food, baked goods, convenience food, snacks, and other packed products. Confectionery products being leisure food products are expected to have low sales due to the COVID-19 outbreak.
Based on Fortune Business Insights analysis, the global confectionery market size was USD 196.56 billion in 2019 and was projected to reach USD 202.63 billion in 2020 before the outbreak of the disease. After the outbreak, the global market is expected to be valued at USD 188.52 billion in 2020.
Get comprehensive study about this report by, requesting free sample copy
Less Manpower in Production Houses to Hinder Growth
The outbreak of COVID-19 in 180 countries has led to distribution of the available stocks and pause the new production operations. The existing stocks are being distributed around the world, which the consumers are accessing through retail stores. Different countries have passed different regulations regarding the lockdown.
For instance, in India only the hotspot areas are in complete lockdown, which includes sealing of all the shops, hypermarkets/supermarkets, and even halting of online purchase deliveries with an exemption of 2-3 retail shops open per street. Partial lockdown in other cities and states includes access to all the shops with restricted timings. These regulations vary from one country to the other and it negatively impacts the confectionery market as there is less/no manpower for production.
For example, in the U.S., The Hershey Company has temporarily closed all its facilities effective from March 15th, 2020. The company has also closed its branches around the world and will resume only after further notice from the government regarding the situation.
Government Rules and Regulations Regarding the Purchase of Food & Other Grocery Products to Reduce Demand
Various government bodies have passed various rules and regulations for the purchase of essential goods. For instance, in the U.S. consumers are allotted 10 minutes per person and are allowed to purchase only 10 products. This way panic-buying and bulk-buying are avoided. But it negatively impacts the confectionery market as the consumers get access only to purchase essential products such as milk, bread, eggs, and other packed food products.
Currently the majority of the consumers have an access to purchase staples. People stock up essential products in order to survive the pandemic crisis. A small scale sale of chocolate confectionery is being witnessed during this lockdown period, but the sales of gums and sugar confectionery have witnessed a rapid decline. This is owing to consumers getting access to the consumption of toffees and everyday chocolates. But the sales of premium and seasonal chocolates are likely to decline significantly.
Disruptions in Supply Chain to Hamper Market Growth
The imports and the exports of various products have been paused due to the pandemic situation. Only essential goods and pharmaceutical products are allowed to be traded across the world. This is due to the transmission of disease through various metals and plastic products, involving large scale manpower, and the availability of less stock in the country. The exports of raw materials required for chocolates have declined from the previous year, which will impact the overall market. The majority of the confectionery manufacturers have shutdown which also reduces the requirement of the imported raw materials.
Confectionery Events Impacted due to the Pandemic Situation
Various confectionery events that were scheduled this year have gotten canceled due to the pandemic. Events such as National Products Expo West, Western Candy Conference, Professional Manufacturing Confectioners Association, Interpack Process and Packaging Conference, NCA Sweets and Snacks Expo, June RCI National Conference, The Institute of Food Technology’s SHIFT’20 Conference, and Specialty Food Association 2020 Conference. These are the events that got canceled due to the pandemic situation caused by COVID-19. These confectionery events help small scale confectioners showcase their products and help in the expansion of their product portfolio. Few events have planned to have a digital conference, which isn’t considered to have the desired outcome.
“The demand for gums and sugar confectionery is expected to exhibit a decline in their sales owing to lower sales in the majority of the countries”
The chocolate confectionery market was valued at USD 114.33 billion in 2019 and accounted for around 58% of the global confectionery market
To know how our report can help streamline your business, Speak to Analyst
The chocolate segment is expected to exhibit better growth as compared to the other confectionery segments such as gums and sugar. Owing to the presence of children in the quarantine period, the purchase of everyday chocolates and toffees are the leading factors for this growth. Under the chocolate segment, the premium sub-segment will exhibit a steep decline. The shutdown of various airports across the world has led to a decline in the purchase of duty-free confectionery products.
The report provides a detailed qualitative and quantitative analysis on the level of impact of COVID-19 across different confectionery market segments.
“Top 10 Companies Account for 40% share in the Confectionery Market Sales”
The confectionery market structure is highly consolidated due to the dominance of some key giants and their presence in the market. The manufacturers are intensively capitalizing on reinforcing their distribution networks, implementation of cost reduction techniques, and placement of varied products in the global marketplace. Barry Callebaut, Ferrero SpA, & Nestle S.A. are some of the major companies which hold the major share in this market.
An Infographic Representation of Impact of COVID-19 on Confectionery Market
To get information on various segments, share your queries with us
Top 10 Confectionery Manufacturers
Revenue US$ Million (2019)
Meiji Co Ltd.
Chocoladenfabriken Lindt & Sprüngli AG
Ezaki Glico Co Ltd
The confectionery market report provides a detailed qualitative and quantitative analysis on the level of impact of COVID-19 on major confectionery manufacturers along with the measures taken by these companies to minimize the impact.
“The Europe confectionery market value was at USD 76.12 billion in 2019 and accounted for around 39% of the global confectionery market”
To know how our report can help streamline your business, Speak to Analyst
The impact of COVID-19 pandemic situation varies across regions. The level of exposure to the disease experienced by different regions and countries depends on various factors such as:
The report provides a detailed analysis on the level of impact of COVID-19 across different regions/countries by taking these factors into consideration.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry