An increase in disposable income has led to increased customer willingness to pay for better quality confections.
Rising disposable income has led to increased consumer willingness to pay more for better quality products and premium chocolates, according to a new report by Research and Markets, titled Confectionery Market in the US 2015-2019.
Confectionery Market in the US 2015-2019 has been prepared based on an in-depth market analysis with inputs from industry experts. The report includes a comprehensive study on the market and its growth prospects in the coming years. It further includes a discussion of the key vendors operating in this market.
The confectionery market in the U.S. comprises chocolates, sugar confectionery and gum. The chocolate segment leads the market, followed by the sugar confectionery and gum segments. The market is growing steadily in terms of revenue and volume. Hershey, Lindt & Sprungli, Mars, Mondelez International and Nestle are some of the major players in the market.
The premium chocolate segment grew in 2013 and 2014. It is expected to grow more in 2015. With continuous innovation in terms of flavor and packaging, and heavy investment in marketing and brand image construction, premium chocolates are likely to gain a significant share in total chocolate sales.
According to the report, with many vendors planning expansions in new and existing markets, the increase in production capacity will be a significant boost to the industry. The rise in returns generated has led major players to expand their operations across countries. For instance, in 2014, Mars expanded the presence of two of its major brands, Mars Chocolate and Wrigley, in Georgia to accommodate the growing demand. Likewise, with the acquisition of Russell Stover, Lindt has doubled its growth in the U.S. Lindt’s new manufacturing facility at Stratham, N.H., U.S., will house additional premium chocolate production lines to meet the company’s growth strategies.
Further, the report states that uneven demand and supply of cocoa will disrupt the sales and growth of the industry.