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Chocolate is the Largest Category in the German Confectionery Sector

The German Confectionery sector is expected to continue to grow over the next five years, but the path will be hard, according to CanadeanThe sector is forecast to grow at a value Compounded Annual Growth Rate (CAGR) of 0.9% and a slightly lower volume CAGR of 0.4% up to 2017. The high level of saturation, a declining population and a growing trend towards health and wellness is expected to limit the growth potential of German Confectionery through to 2017. However, in 2012, the Confectionery market was still the fourth largest out of the fifteen Food sectors monitored by Canadean in the country.
The largest category in the Confectionery sector in 2012 was Chocolate with a 57.6% volume share and a 67.7% value share. Whilst it is expected to remain the largest category, it is forecast to witness a CAGR of 0.9% for value and 0.3% for volume over the next five years to 2017, despite the introduction of new products, such as Ritter SPORT Coconut.
Sugar Confectionery is the second largest category, with a volume share of 39.8% in 2012. Whilst value growth is expected to be below the sector average at a CAGR of 0.7%, the CAGR for volume is forecast to reach 0.6% to 2017, above the sector average.
The fastest growing category is expected to be the third-largest category, Gum, which will grow above the sector average at a value CAGR of 1.3% and volume CAGR of 1.8% up to 2017

The distribution channels

The two largest distribution channels in the German confectionery market, Hypermarkets & Supermarkets and Convenience Stores, together accounted for over three-quarters of the entire sector in 2012. The most positive growth was recorded by Hypermarkets & Supermarkets, further establishing its growing dominance. Demand for Gum in Food & Drinks Specialists, Vending Machines and Drug Stores & Pharmacies remained largely unchanged, whilst Department Stores and “Dollar Stores”, Variety Stores & General Merchandise Retailers lost share in 2012. 

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