The chocolate market in Poland
The growth rate of the sweets market slowed down this year, yet the market is still developing. New products, irrespective of the current economic conditions, will still be a demand-stimulating factor; therefore, it is possible to expect many proposals of innovative products and limited versions in the approaching autumn/winter season.
Chocolate is not only delicious but also healthy. Thanks to its ingredients and positive properties, it reduces fears, anxieties and depression, and affects our mood. Poles increasingly more often reach for chocolate delicacies and the producers make every effort to satisfy even the most demanding preferences. Observing the trends in the confectionery industry, we can expect further development of the chocolate sweets segment in Poland in the nearest future.
Poles buy more and more sweets, and the entire market grows very dynamically. Various data published by research companies prove that. Year to year, the demand for chocolate products as well as other types of sweets increases. Obviously, it is reflected in the sales increase of particular products and categories. The rising tendency concerns chocolate bars, pralines and chocolate candies. Well-known brands and products are most popular among consumers who have got used to and trust them.
Crisis favourable for chocolate products
The market of chocolate sweets, which comprises candy bars, wafers, pralines, cookies <60 g, muesli bars, as well as chocolate bars and drops, is characterised by relatively high flexibility and constantly growing dynamics. In the last year, this market developed in a similar pace as the sweets market in general.
According to the data published by The Nielsen Company for the period from October 2008 to September 2009, the market was worth some EUR 1.12 billion. During that time, 148,000 tons of chocolate sweets in total were sold. The entire market grew as compared to the corresponding period of the previous year by 7.4% in value and 2.5% in volume. This growth is generated mainly thanks to the segments of pralines and chocolate bars.
The MEMRB research institute presented similar data. Based on the information collected in the research period of March/April 2009, this category increased by more than 10% in value as compared to the corresponding period of the previous year. The increase was primarily caused by such segments as chocolate bars +14%, pralines +10%, candy bars +8%, wafers +7% and drops +7%. According to the research carried out by MEMRB, in the period from June 2008 to May 2009, the market of chocolate sweets was worth more than EUR 1 billion, of which the traditional channel generated almost EUR 625 million.
The crisis turned out to be favourable for the food industry, including the chocolate market. The sale in Poland in the said segment did not collapse. It meant that despite increasing prices, dictated mainly by rising prices of raw materials, customers were willing to buy more chocolate products than before. The global crisis, which also reached Poland, did not change the trends on the market, although we may suspect that the potential dynamics of growth slowed down.
“Despite rising prices of raw materials (cocoa seeds and fat), no significant prices fluctuations of chocolate goods were recorded, which means that producers got prepared for such a situation and contracted raw material purchases well in advance,” – says Dorota Weres, PR Manager at Eurovita
Sp. z o.o.
Chocolate products consumption has a seasonal character. Poland is a country where the people are used to presenting chocolate products as gifts; therefore, various kinds of special occasions are a good moment to give a present in the form of a chocolate delicacy. During Christmas and Easter, we buy the biggest quantities of chocolate, whereas the summer is the worst period for such products. It is mainly connected with traditional exchanging of holiday presents and gifts as well as with increased consumption of sweets during holidays. Especially Christmas generates increased interest in chocolate and pralines, which are purchased as Christmas gifts or an addition to a bigger present left under the Christmas tree.
Pralines and boxes of chocolates
Pralines are one of the fastest developing segments of the entire market of chocolate products. Until recently, they were considered an exclusive product associated with special occasions; however, according to market research, Poles are more and more willing to reach for these chocolate delicacies. The so-called gift products, such as boxes of chocolates and other gift forms, dominate on the Polish market of pralines.
Most of them are given on name days, birthdays, other ceremonies, or as a form of gratitude. Some of the products offered in gift packages are presents for less official occasions, for example as a surprise for a close person, or without any occasion at all by for example praline fans as an award for themselves. According to the research conducted by The Nielsen Company, the market of pralines grew by 12.5% in value and 8.6% in volume in the period from October 2008 to September 2009 as compared to the corresponding period from October 2007 to September 2008. During that period, almost 35,600 tons of these products were bought for a total amount of nearly EUR 319.6 million.
“The market of pralines records a high growth rate; in the period April – May 2009, as compared to the same period in 2008, the sale of these products grew by 28% in value and by 23% in volume” – says Adrianna Ottlik, Categories Director at ZPC Mieszko S.A. – “Year to year, we are recording growths of respectively 15% and 11% (The Nielsen Company data for June 2008 – May 2009 as compared to the period June 2007 – May 2008). The double-digit growth dynamics is visible in all significant segments of the pralines market: gift products, chocolate marshmallows, as well as pralines filled with cocoa and chopped peanut mass, truffles, marzipan chocolates, pralines with cherry liqueur and chocolates offered in bags”.
The most important feature of the pralines markets is its diversity, both in terms of packaging types as well as flavours and types of filling. Polish consumers appreciate that. They are on the one hand used to traditional products, but at the same time react very positively to novelties introduced to the market. A fairly even development of particular segments is visible on the market; the sale of boxes of chocolates, pralines with cherry liqueur and stuffed chocolates in bags, as well as pralines filled with cocoa and chopped peanut mass, truffles, marzipan chocolates based on traditional recipes increases. When selecting products offered on the market, Polish consumers mainly focus on and look for brands; it applies to both products purchased as gifts, such as boxes of chocolates, as well as chocolates bought for themselves or for home. Consumers decide on well-known brands, which offer proven and trustworthy quality of products.
Chocolate
Chocolate bars are a very popular and often purchased product among all chocolate goods. This segment is worth more than EUR 290 million and, thanks to new products launched all the time, it records exceptionally dynamic growth of sales. There are many producers on the market of chocolate bars, who provide consumers with their products. However, a few leading companies have dominated and taken over the biggest share of the market. According to experts, Poles are still faithful to the well-known and proven flavours. A Polish consumer most definitely prefers milk chocolate, but consumes more and more dark chocolate each year. Meanwhile, dessert chocolate and dark chocolate are purchased by people with sophisticated and demanding flavour preferences who value intensive flavours.
Based on the data collected by The Nielsen Company, a chocolate bar is one of the most popular chocolate products. In the period from October 2008 to September 2009, chocolate bars won a 27.2% share in the market, which allowed them to be the third largest segment in terms of sales value. The sales volume of this group of products totalled 46,900 tons and chocolate bars were the second most important group of the market in terms of sales quantity (31.7%).
The popularity of chocolate bars depends to a large extent on the age of consumers. Young people reach for them most often; among the people aged 15-19, chocolate bars are consumed by 93% of respondents. In the group of people aged 20-24, 89% declare to be chocolate consumers; in the group of respondents aged 25-39 – 87%, whereas below 80% people above 50 years of age admit to eating chocolate.
“The best-selling chocolate bars of the Terravita brand include 100 g chocolate bars of the following flavours: mint, advocaat, dark, milk, tiramisu, pistachio, marzipan and “window” with whole hazelnuts” – says Dorota Weres. She then adds that besides milk and dark chocolate, which are the basic flavours in the offers of all producers, the remaining Terravita chocolate bars (mint, advocaat, dark, milk, tiramisu, pistachio, marzipan) often do not have their counterparts among the products of competitors.
According to The Nielsen Company, the biggest amounts of chocolate bars are sold in supermarkets (35%) and average-size grocery stores (20%). Moreover, customers often buy these products in small grocery stores.
Impulse products, i.e. candy bars, wafers and cookies
On the Polish market of chocolate sweets, we are able to distinguish a segment of impulse chocolate products, defined as candy bars, wafers and cookies < 60 g. These products have an increasing share in the turnover of various stores, which results from their impulse character and relatively low unit price. The market matures and sellers begin to appreciate and organise special exposition zones for such products near cash registers. Producers invest in innovative exposition solutions, and it seems that consumers find it difficult to resist a sweet temptation.
In the researched period of March/April 2009, this segment grew by almost 8% in value as compared to the corresponding period of the previous year. In the period from October 2008 to September 2009, the category of impulse chocolate products (candy bars and wafers) was worth nearly EUR 378 million, and therefore became the biggest of all chocolate sweets categories. Among the impulse sweets, candy bars and wafers category, the products offering light sweetness, such as wafers in chocolate or light candy bars, are increasingly popular.
The competition on the market is fierce. Consumers’ spontaneous brand awareness plays an important role on the market of candy bars. The appealing character of this segment results from the fact that candy bars belong the group of products most often selected by young people.
They match the lifestyle as they provide a quick snack, which provides energy and improves mood. A young consumer, however, is not loyal. Their decisions, influenced by advertising spots, are often impulse-driven and recognition of brands often plays the crucial role. A young consumer needs to be taken care of. That is why this market is so competitive.
According to the MEMRB ranking, the leading segment brands include Snickers, Mars and Twix produced by Mars Polska. For years, Snickers Standard has been the number one impulse chocolate product in Poland (according to MEMRB). Despite a fall in the sale of all chocolate products in the first months of this year, we are still recording a rising tendency of the entire category.
“Market research shows that 70% of consumers in Poland do not plan purchasing sweets, but buy them on an impulse,” – says Katarzyna Kierach from Wawel. – “It mainly concerns candy bars and wafers whose value share in the market amounts to more than 20%. Consumers are also willing to reach for novelties, that is why new products often appear in our offer”.
The Poles have fallen in love with the top shelf
A dynamic increase of sales was recorded on the Polish market of sweets from the premium segment, which is a consequence of the fact that the Polish society becomes wealthier. The better the financial situation is, the bigger the demand for premium sweets, like pralines, chocolate boxes and chocolate bars with unique ingredients, is. Poles are more willing to reach for sweets of very sublime flavours and offered in elegant packaging, which some time ago were considered niche. Despite a slowdown in the economy, the Polish society is gradually getting richer. There is a group of consumers who look for food products characterised by highest quality and remain loyal to premium brands. The preferences of this group of people changed and in spite of a worse financial situation, they did not return to the lower-quality products.
“Increasingly better knowledge and awareness of a Polish consumer is a characteristic feature of the premium sweets market. Poles are also more sublime in their preferences and more often look for products perfect for exceptional occasions,” – claims Anna Telakowiec, Marketing Director at Cadbury Wedel Sp. z o.o. – “Therefore, they seek products of a given brand and quality on store shelves. Our customers value original flavours, high quality as well as interesting and elegant packaging”. Wedel has a series of exclusive sets of highest quality pralines in elegant boxes or cans in its offer, e.g. Maestria or Wedlowskie Serca. In the segment of ready sets of pralines, Wedel’s offer includes Wedlowskie Baryłki and Pasjonata, which will be available in a new elegant form of a bag – a perfect solution for a present. Hand-made pralines based only on natural ingredients and offered at special E. Wedel Chocolate Cafés play a crucial role in the premium segment as well.
“Our products form the premium segment – mainly the Maestria line chocolate bars and boxes of chocolates – are a guarantee of highest quality. Therefore, we expect that our consumers who have a need to buy luxurious chocolate will reach for Wedel instead of other brands. We have refreshed the image of our chocolate bars and pralines, and we do believe it will be an additional advantage in favour of our products,” – adds Anna Telakowiec.
Premium chocolate sweets, including among others dark chocolate with high content of cocoa, due to increased education in the field of healthy lifestyle and nutrition, are gaining popularity and recognition among consumers.
“Consumption of dark and dessert chocolate grows gradually; therefore, the Terravita brand also offers products in this category, e.g. the COCOACARA range of dark chocolate bars with 77% cocoa and exotic ingredients – coffee and cardamom, chilli and orange peel. Meanwhile, in the segment of pralines, we offer for example the Valentine’s Day box of chocolates with heart-shaped pralines and delicate mousse au chocolat filling” – says Dorota Weres, PR Manager at Eurovita Sp. z o.o.
Market forecasts
Based on the data, it is visible that the potential of this category is very high and producers are unanimous as far as the future of the chocolate market is concerned. At the beginning of the 90s of the previous century, an average Pole consumed nearly 2 kg of chocolate products per year. At present, average consumption has reached approximately 4 kg per person, and this is not the peak of Polish market’s potential. In the rich countries of Western Europe, chocolate products consumption is much higher; in Great Britain it is approximately 7 kg per person, whereas in Austria and the Netherlands – 8 kg each. If the prices of cocoa seeds do not grow with such a pace which brings about significant increase of product prices, the growing tendencies are expected to continue” – says Katarzyna Kierach, Communications Director at Wawel S.A.
If we compare the Polish market of chocolate sweets with highly developed markets of such countries as France or Germany, we see how much we still have to do. It is always worth pursuing the level represented by worldwide leaders.
The segment of pralines will continue developing with the aim of adjusting the offer to the needs of consumers and responding to the appearing trends. “Both this year and in the nearest future, the pace of development of the pralines segment will be one of the highest among all the segments of the sweets market. Within the pralines segment, the interest in products positioned in the premium segment does not seem to weaken and the sale of products from this segment grows systematically” – recapitulates Adrianna Ottlik.
Due to fierce competition on the market, the new proposals will be richer and more original, despite maintaining the traditional character of gifts. Therefore, producers strive to be more recognisable on the market, observe the trends and track forecasts of analysts, who agree that the economic situation begins to improve gradually, which is an optimistic forecast for the future ahead of the Polish market of chocolate sweets.
Tomasz Masal