RESEARCH SUMMARY -Latest Outcome of Our Research-
07/09/09
Distribution-packaged Confectionery Market 2009: Key Findings
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Research Outline
Yano Research Institute has conducted a study on the distribution-packaged confectionery market in Japan with following conditions.
1. Research period: April to June 2009
2. Research targets: Confectionery manufacturers, confectionery wholesalers, etc.
3. Research methodologies: Face-to-face interviews, telephone interviews and email surveys with relevant personnel were primarily employed, being supplemented by literature research.
Summary of Research Findings
1. Market overview
The distribution-packaged confectionery market has been in an increasing trend since fiscal 2005. The fiscal 2008 market increased by 1.2 percent over the previous year to 2,111.2 billion yen. The market environments were severe as product prices and volumes were revised due to price hike of ingredients and materials and consumers became more saving oriented due to deteriorated economy in Japan. On the other hand, demands at home were induced under the conditions of reduced occasions of going out and eating out, and snacks, biscuits and rice crackers sold well. New products developments are active particularly for snacks, whose estimated fiscal 2008 market size was 262.9 billion yen (6.4% y/y increase), and rice crackers, whose estimated fiscal 2008 market size was 314.5 billion yen (3.5% y/y increase), targeting consumers who drink and eat some snacks at home more often than before.
Furthermore, consumer food safety awareness has increased due to the series of incidents, including poison mixture into frozen foods and melamine mixture into dairy products, and consumers are returning to made-in-Japan products in the confectionery sector as well. As a result, Japanese long-selling products that give consumers the feeling of safety performed well.
2. Notable trends
As children are decreasing more and more, the distribution-packaged confectionery market, whose main target had been children, was facing a crisis of market size reduction. However, the market scale is supported by the success in developments of new demand groups of adults and men and new eating scene at office with use of regular confectionery delivery and placement services to meet diversified lifestyles. Current middle- and old-aged people have eaten confectionery habitually since childhood, and confectionery is consumed by all three generations in many families. Confectionery demands from men became obvious and the purchase at convenience stores is remarkable. Moreover, food demands at office were created, which had not been assumed before. Regular confectionery delivery and placement services are being paid attention especially in the Metropolitan area.
Good quality and taste of confectionery are taken for granted by consumers. Attracting them with new suggestions and convenience in addition to excellent quality and taste leads to the creation of new demand areas, which is a key to activate the market for saving-oriented consumers under recession.
3. Future prospects
As in fiscal 2008 consumers saving tendency will continue and price sensitivity is expected to be intensified. Under this condition large general merchandise stores are further lowering prices of private brand products. On the other hand, confectionery manufacturers make efforts in providing reasonable prices with existing national brand products, and moreover, they are restructuring new brand strategies with existing brands and derivative products as their long-selling brands are in a favorable condition.
The environments surrounding confectionery market will continue to be severe, and the market size is expected to be 2,119.5 billion yen in fiscal 2009 and 2,120.0 billion yen in fiscal 2010. New product developments in line with the changes in consumers diversified tastes and lifestyles and new demand developments, such as “food” at office, are desired to vitalize the whole distribution-packaged confectionery market.
Published Report
Report Title: Confectionery Industry: Distribution-packaged Confectionery 2009
*The information provided in the "Research Summary" is what is as of the date of announcement and could be altered or renewed without any prior notice.
