The Changing Face of Confectionery

© Sweet Global Network

View large image in photo gallery

The international confectionery industry is in a continuous state of flux, as it is affected by demographic developments, the retail landscape and consumer patterns. Global interdependencies, changes and new perspectives are clearly also at the focus of attention in the international confectionery industry.

This year’s International Confectionery Convention, held by the international confectionery association Sweet Global Network, therefore ran under the motto: "The Changing Face of Confectionery". Approx. 550 executives from the confectionery industry in eleven countries gathered in Berlin in mid-November to learn and exchange ideas on issues such as "The Impact of Demographic Developments on Confectionery Markets", "Confectionery and SME" and "Sustainability and Raw Materials". After all, managers in the worldwide confectionery industry are continually facing ever new challenges.

Demographic developments

Dr. Reiner Klingholz, Director of the Berlin Institute for Population and Development, talked about the future impact - and indeed partly dramatic impact - of global demographic developments on social and economic conditions. "There will be an increasing imbalance between regions with shrinking and rapidly growing populations." Africa, for instance, will have doubled its population to two billion, even more new citizens can be expected in Asia, and the United States will have the same number as Germany today. India will soon overtake China as the most populous country. In Germany, on the other, every 7th person is likely to be over 80 by the year 2050. It is a country where the number of newly born - currently 665,000 - has halved between 1960 and 2009.

Consumer patterns

Prof. Hendrik Schröder, holder of the chair for Business Management at the University of Duisburg-Essen, highlighted the relationship between manufacturers, retailers and consumers. He sees today’s customers as being highly flexible and changeable, with continually expanding needs and increasing values such as freedom from stress, deceleration, good health, convenience and sustainability. The key to the success of any retail model, says Schröder, is a fundamental relationship of trust with the customer.

Market expansion and brand reinforcement

Andreas Gabel, Sales Director of Wrigley GmbH, looks at demographic developments with optimism. He believes that an ageing society need not be a calamity but can be an opportunity for market expansion and brand reinforcement. Using his own brand as an example, he showed how a product can continue to be successful for several decades - with innovative, forward-looking product ideas and developments. The concept of chewing gum has continually adjusted itself to the prevailing time and to changes among consumers. It is now (and will continue to be) based on certain additional factors: health, added value, lifestyle and contemporary enjoyment. The extremely successful launch of the lifestyle brand 5 GUM has convincingly demonstrated that fresh potential can be aroused even among regular users if trends are combined with credible brand positioning. His conclusion: The potential of a brand and of the segment is more powerful than demographics. Even older target groups can be reached and can be moved towards brand loyalty.

India as a growth market

Bernhard Steinrücke, Director General of the Indo-German Chamber of Commerce, looked at the world’s biggest growth market - India - where the confectionery market is quite different from European countries, with annual sales of about two billion euros. Until now only 2.5 per cent of all confectionery has been imported, and only 30 per cent is manufactured on an industrial scale at all. The rest is still produced traditionally at home or by micro-enterprises. Moreover, any import of confectionery is currently made very difficult by the country’s high import duties, so that goods are correspondingly expensive. And of course it continues to be difficult to develop a consistent sales network, said Steinrücke.

Being future-proof

Alfred Ritter, the owner of Ritter Sport, talked about sustainable projects but said he preferred the term "future-proof". "If we want something to be future-proof, then our activities today mustn’t obstruct or totally prevent our continuation in the future. This is also the essence of future-proof or sustainable investment. It is not simply a matter of using money with a view to future profits, but - importantly - also to use money in a way that will be of benefit to the community." His company has therefore been specifically supporting eco-friendly electricity since 1980, and it generally seeks to save resources, realises its social responsibility towards the workforce and buys its cocoa beans directly and "fairly" from local farmers.