Brazilian sugar, gum confectionery market hits $5 B

As Brazilian consumers develop a more sophisticated sweet tooth, new research from Mintel reveals that the sugar and gum market in Brazil has, for the first time, broken the R$10 billion (US$5.07 billion) barrier.

February 12, 2013

As Brazilian consumers develop a more sophisticated sweet tooth, new research from Mintel reveals that the sugar and gum market in Brazil has, for the first time, broken the R$10 billion (US$5.07 billion) barrier. Mintel’s research valued the Brazilian confectionery market at R$10.2 billion in 2011, up from R$8.2 billion in 2007 and estimates it to have grown even further to R$10.8 billion to the end of 2012.

And it’s a sweet outlook for the future of the sector too, as Mintel forecasts market revenue to grow at a rate of 5% a year, annual growth peaking at 6% in 2014 and 2016, when the World Cup and Olympic Games will take place. Furthermore, by 2017 the market is set to reach R$14 billion (US$7.1 billion). While value sales continued to grow, volume levels have remained stable, at an average of 260 thousand tons a year from 2007 to 2011.

“Over the past five years, the confectionery market has shown fast revenue growth against stable growth for sales volume. Apart from raw material price increases, in sugar in particular, the market was also boosted by a better product offering. Higher quality and more expensive sugar confectionery and gum products have been developed—which, coupled with increased income from Brazilian consumers and a desire for innovation—have really boosted the market over this period,” said Jean Manuel Gonçalves da Silva, Senior Food Analyst at Mintel.

The demand for more sophisticated products has been catered for by both imported and products made in Brazil alike. The volume of importation grew 40% between 2007 and 2011, while in value importation has nearly tripled over the same period of time, highlighting the shift towards more expensive products in Brazil. Around R$10 million confectionery products were imported to Brazil in 2007; this figure jumped to R$30 million by 2011.

The average price of confectionery also grew 23% over the past five years, from R$33 a kilo in 2007 to R$41 in 2011. Mintel data reveal that chocolates followed this trend with 20% average price increase over this period (from R$22 a kilo in 2007 to R$26 in 2011), as did biscuits, with a 28% average price increase in the category, growing from R$7 a kilo in 2007 to R$9 a kilo in 2011.

The report also reveals that Brazilians are open to new flavors and products, especially consumers aged 16–24. Indeed, 76% of Brazilian consumers in this age group claim that they like to try new kinds of gum and sugar confectionery.

According to Mintel´s Global New Product Database (GNPD), new sugar confectionery and gum product launches in Brazil have grown nearly 40% from 2007 to 2011, while in the United States, launches have dropped by nearly 50% in the same period of time.

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