Market Overview

The estimated confectionery market size for FY2021 declined by 3.8% from the previous fiscal year to 1,936.7 billion yen. This, however, was due to the impact of transition to new accounting standards with the revenues stated, adopted by multiple companies. When calculating based on the old accounting standards, the market size turned to expansion by 0.8% on a YoY to 2,028.1 billion yen.

For FY2020, at-home spending for confectionery rapidly increased as people had to stay home amid the corona crisis, while the sales of pocket-size confectionery products declined as go-out opportunities decreased. Sharp drop in the number of travelers in and out of the country forced the sales of local confectionery for souvenir to contract enormously. FY2021 saw the similar tendency with the previous fiscal year, as the influence of pandemic continued. Although there were concerns about reactionary fall for special demand by at-home spending, well-selling products were generated for the categories and products that successfully attracted social media and Generation Z, as was able to see in new chocolate-coated biscuits and V-shaped recovery of gummies, which contributed to market expansion.

Noteworthy Topics

Aiming to Drive Up Unit Price by Developing Higher Value-Added Products amid Soaring Ingredient Costs

While commodity price is rising extensively, the confectionery market for FY2022 has seen distinctive tendencies depending on product categories. The category centered on snack foods and gummies is likely to substantially expand, as the demand is on the rise and the sales volume at each confectionery manufacturer having exceeded the previous-year results. On the other hand, many other categories have not been able to raise enough prices to cover the extra costs, indicating practical sales decline at many companies, even though the sales value may have surpassed the previous-year performance.

As skyrocketing raw material costs continue without any sign of declining tendency, each manufacturer focuses on the development of higher value-added products, aiming to improve the unit selling price. Launch of those premium products that make consumers filling, or those added with healthy value stand out, which tend to show solid sales.

Future Outlook

Due to overall price rise, the confectionery market size by value for FY2022 is expected to expand. Though distinct difference observed depending on the categories, the market as a whole is likely to rise slightly by 1.3% on YoY to 1,961.4 billion yen.

As FY2023 still expects price revisions, the market is projected to expand at the similar level with the previous fiscal year. The plus factors are regarded to be the premium products being established and the expanded demand by increased inbound customers. Because limited effects are expected by revised prices for existing products, each of confectionery manufacturers are hastily developing higher value-added products thereby to raise the unit selling price. When new products become fully aware of, they are considered to contribute to confectionery market expansion.

Research Outline