Confectionery Market Size to Reach USD 188.52 Billion in 2020; Cancellation of Confectionery Events Worldwide to Abruptly Halt Market Growth

The global confectionery market size was anticipated to touch USD 202.63 billion in 2020 in the pre-coronavirus period. However, the COVID-19 outbreak has deflated the growth rate of the market and it is now expected to reach USD 188.52 billion in 2020, according to the Fortune Business Insights™ special report on this market, titled “Impact of COVID-19 on the Confectionery Market Size, Share, Industry Analysis and Regional Forecast 2019-2026”.

Mondelēz International Unveils Its COVID-19 Action Plan

Mondelēz, the American confectionery bigwig, announced its plans to contribute to the on-going battle against the coronavirus in the US in late March. Chief among the company’s plans is the enhanced benefits and higher remunerations for over 10,000-strong workforce in the US and a pledge to donate USD 15 million to community efforts to fight the pandemic in the US as well as around the globe.

Furthermore, recognizing its position as one of the largest food companies in the US and the world, Mondelēz aims to ensure sustained food supply across the country, while also committing to hire 1000 extra frontline workers. Thus, philanthropic activities such as these undertaken by players in the global confectionery market, though not having any immediate effect on their market position, will benefit them in the long-run.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/impact-of-covid-19-on-confectionery-market-102690

Massive Supply Chain Disturbances to Hinder Market Growth

In a desperate effort to contain the spread of the coronavirus, nations all over the world have imposed trade restrictions, crippling the global supply chain of raw materials in the process. This has naturally affected industries dependent on supply of raw materials and the confectionery industry is one of them.

For example, the Singapore-based Olam Cocoa expressed apprehensions regarding supply chain disruptions for its cocoa products as a result of travel bans and quarantine measures. Similar issues are being confronted by the Swiss chocolate behemoth Barry Callebaut. Both these companies source and process their cocoa from Côte d’Ivoire and Ghana in Africa, which collectively account for nearly 60% of the world’s cocoa production. While the COVID-19 has reached these two countries, its impact has been minimal, but with stringent curbs on cross-border trade, the companies are bracing for the hard times to come.

Shoring up of Finances to Remain Prime Concern for Market Players

The COVID-19 outbreak has majorly upset the traditional revenue streams that companies in this market have hitherto relied upon. As a result, most of the market players are implementing different tactics to cushion the impact of the pandemic on their financial health. Companies with a wide range of offerings will be better poised to battle the crisis, as compared to those whose central products are premium in nature. Despite striking a severe blow in the short-term, demand for leisure and comfort foods suppressed during this period is expected to erupt once the crisis is over. Thus, in the long-term, the market appears to be well-placed.

Industry Development:

• April 16, 2020: Swiss chocolate giant, Barry Callebaut, announced that its sales volumes have increased, but the company is planning to draw on a fund worth €1 billion to facilitate its depleting liquidity owing to the mounting concerns about the international financial markets during this crisis.

List of Players Profiled in the Confectionery Market Report:

• Ezaki Glico Co. Ltd.
•  Chocoladenfabriken Lindt & Sprüngli AG
• The Hershey Company
•  Mondelēz International
•  Mars, Incorporated
•  Orion Corp
•   Pladis
• Nestlé SA
• Meiji Co. Ltd.
• Ferrero Group

Further Report Findings:

• The chocolate segment, which held a market share of 58% in 2019, is expected to retain its position as consumers in various countries are opting chocolate confectioneries to deal with social distancing and self-quarantine.
• However, the premium sub-segment under chocolate confectionery is experiencing a substantial drop as most consumers are avoiding extravagant purchases.
• With a market size of USD 76.12 billion in 2019, Europe was slated to dominate the confectionery market share throughout the forecast period. However, the COVID-19 outbreak has deflated market spirits in the region as the number of coronavirus cases is skyrocketing in the region, thus putting purchasing of confectionery items on the backburner.