Author: Mintel Group Ltd.
Last saved by: HTTP server

Chocolate Confectionery - UK - April 2006

INTRODUCTION AND ABBREVIATIONS
Definition
Consumer research
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Scape goats and red herrings
Chocolate club
EXECUTIVE SUMMARY
Working hard to stand still
Bars are the stars
Difficult to grow
Health overshadows market
A duopoly emerging
Lighter textures tap into current trends
Advertising support is strong
New product development
Multiples on the high street change the impulse channel
Consumer trends
Chocolate remains a national obsession
MARKET DRIVERS
Figure 1: Trends and projections in UK population, by age group, 2000-10
Kids sustain everyday sectors
Better news for young adults
The burgeoning retired population; heartland of non-usage
Sharing is a key driver in the market
Figure 2: UK households and one-person households, 2000-10
A mini treat for me
Rising affluence fuels indulgence
Figure 3: PDI and consumer expenditure, at constant 2000 prices, 2000-09
The role of snacking – adults
Snacking at work
Importance of children to the market
Figure 4: Average weekly income of children aged 7-14, by gender and age, 2002-04
Big brother is watching the nation’s waistline
The obesity issue
Figure 5: Trends in body mass index (BMI) of adults in England, by gender, 1997-2003
Healthy living blueprint for schools
The question of vending
The stick and carrot approach
The alternatives
FSA intervention
The move towards a ‘balanced’ diet
MARKET SIZE
A challenging market
Figure 6: UK retail sales of all chocolate, 2001-06*
Mixed messages
Figure 7: UK retail sales of chocolate by sector, 2001-05
Seasonal is re-segmented
Chocolate confectionery
Figure 8: UK retail sales of chocolate confectionery, 2001-06
A challenging market
MARKET SEGMENTATION
Figure 9: UK retail sales of chocolate confectionery, by sector, 2001-05
Countlines suffer
Selflines stumble
Bars blossom
Figure 10: UK retail sales of moulded bar chocolate by size and positioning, 2001-05
Premium appeals
THE SUPPLY STRUCTURE
 MANUFACTURER SHARES
Figure 11: Manufacturers' value shares in the UK chocolate market (retail sales), 2001-05
A slowdown for the leader?
Nestlé in trouble
Own-label wins
 BRAND SHARES
Figure 12: Leading brands purchased in the UK chocolate confectionery market, 2003-05
No change at the top
Light and airy winners
Manufacturer support
Figure 13: Main monitored advertising spend in the chocolate confectionery category, 2001-05
Deeper pockets
Figure 14: Main monitered advertising spend by manufacturer in the chocolate confectionery category, 2001-05
A change of strategy?
Preparing to exit?
Cadbury reap economies of scale
Figure 15: Main monitored media spend by chocolate manufacturers, 2005
MANUFACTURER PROFILES
Cadbury Trebor Basset
Cadbury
Supporting strategies
Brand support
Figure 16: Main monitored media spend by Cadbury, by brand, 2005
Dairy Milk
Recent new product development
Health focused and portion control
Luxury focused
Ferrero Limited
Campaign trail
Figure 17: Main monitored media spend by Ferrero, by brand, 2005
Recent new product development
Tackling external competition
Extending kids
Adult indulgence
Green & Black’s Limited
Brand credentials
Figure 18: Main monitored media spend by Green & Black’s, by brand, 2005
Targeting out-of-home
Kraft Foods UK Ltd
Marketing support
Brand consolidation
Brand extension
Lindt & Sprungli (UK) Limited
Figure 19: Main monitored media spend by Lindt & Sprungli, by brand, 2005
Brand extension
A move into countlines
Masterfoods Limited
Figure 20: Main monitored media spend by Masterfoods, by brand, 2005
Mars follows the lighter trend
Galaxy on the offensive
Recent new product development
Healthy
Indulgence
Brand extension
Nestlé (UK) Limited
Figure 21: Main monitored media spend by Nestlé, by brand, 2005
A moral victory?
Decline for Double Cream spend
Recent new product development
Health related launches
Brand extensions
Retro trend for nostalgia
Children’s products
Thorntons plc
 OTHER SUPPLIERS
Big Bear Limited
Guylian (UK) Limited
Alfred Ritter GmbH & Co
The Day Chocolate Company Limited
The Greatest Store on Earth Limited
Zetar plc (Kinnerton Group Limited)
Own-label
Asda
 BOOTS
Marks & Spencer
Sainsbury's
Tesco
NEW PRODUCT DEVELOPMENT
Figure 22: UK new product development by claims, October 2004-05
UK product claims
Utilising health for NPD
Buxton Foods Limited – products suitable for allergies
Hope & Greenwood – ration book revived
Orgasmic Chocolates – a new take on functional ingredients
Key themes of global NPD
DISTRIBUTION
Multiple grocers move into the high street
Figure 23: Sales of chocolate confectionery, by outlet type, 2001-05
Confectionery-free checkouts in Impulse!
Category management versus health management
Own-label wins
Theatre wins favour with the trade
Power for supply chain integration
One in one out
The question of King Size
THE CONSUMER
Figure 24: Penetration of chocolate confectionery, by type, 2002-05
A shift in consumption habits
Indulgence may be a factor
Demographic changes negatively affect the market
Figure 25: Consumer profile of heavy users of chocolate confectionery, 2005
A correlation with health
 THE YOUNG CONSUMER
A saturated market
Figure 26: Consumption of chocolate, 7-16-year-olds, 2001-05
Evidence of cutting down – are children being restricted?
Pocket money spending
Figure 27: How 7-10-year-olds spend their money, 2001-05
Snacks fall out of favour
Figure 28: How 11-16-year-olds spend their money, 2001-05
Snacks lose out to mobile teens
 EXCLUSIVE CONSUMER RESEARCH
Figure 29: Occasions for which chocolate is purchased most often, November 2005
Home indulgence
On the go
Health vs emotion
Why products are purchased
Figure 30: Occasions for which chocolate is purchased most often, November 2005
DETAILED DEMOGRAPHICS
Figure 31: Consumption of chocolate bars in the last 12 months, by demographic sub-group, 2005
Figure 32: Consumption of other chocolate items in the last 12 months, by demographic sub-group, 2005
THE YOUNG CONSUMER – DETAILED DEMOGRAPHICS
Figure 33: Consumption of chocolate, 7-10s, by demographic sub-group, 2005
Figure 34: Who buys most of the chocolate that 7-10-year-olds eat, by demographic sub-group, 2005
Figure 35: Where 7-10-year-olds eat chocolate the most, by demographic sub-group, 2005
Figure 36: Consumption of chocolate, 11-16s, by demographic sub-group, 2005
Figure 37: Who buys most of the chocolate that 11-16-year-olds eat, by demographic sub-group, 2005
Figure 38: 11-16-year-olds eat chocolate the most, by demographic sub-group, 2005
Figure 39: Occasions for which chocolate is purchased most often, November 2005
THE CONSUMER – ATTITUDES AND ENTHUSIASM
Figure 40: Attitudes to buying chocolate, November 2005
Looking into the decline
Reduction Advocates (22% of respondents)
Diminishing Devotees (17% of respondents)
So what else are they eating? – second typology set
Figure 41: Alternatives bought instead of chocolate, November 2005
Health making an impact
Health conscious (40% of the cutting back sample)
Food Junkies (39% of the cutting back sample)
Going forward
For those that aren’t cutting back – first typology set
Pure Impulse (16% of all respondents)
Routine-led (11% of all respondents)
DETAILED DEMOGRAPHICS
Figure 42: Attitudes to buying chocolate, November 2005
Figure 43: Attitudes to buying chocolate, November 2005
Figure 44: Attitudes to buying chocolate, November 2005
Figure 45: Chocolate buying clusters, by demographics, November 2005
Figure 46: Chocolate buying clusters by demographics, November 2005
Figure 47: Chocolate usage occasion according to consumer target group, November 2005
CONSUMERS CUTTING DOWN – DETAILED DEMOGRAPHICS
Figure 48: Repertoire by demographics for respondents agreeing they ‘buy less chocolate than they used to’, November 2005
Figure 49: Repertoire clusters by demographics for consumers cutting down on chocolate, November 2005
THE FUTURE AND FORECAST
Figure 50: Forecast of the chocolate confectionery market, 2006-11
Countlines and selflines to decline
Increase in moulded bars not enough
Population and societal trends unaccommodating
Limited life from premium sales?
Health lessons from other markets
Positive health
Global functional products
Social responsibility
Stability and decline
Factors incorporated in the forecast

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.