The sugar confectionery industry in Argentina is being driven by the rising demand from the growing middle-class population. The growing candy industry, which attracts both children and adults, is significantly contributing to the growth of the confectionery market in the country. The rising demand from the food industry, increasing consumer demand for packaged food products, and expanding kiosks in the country are expected to further aid the market's growth during the forecast period. The innovation in sugar confectioneries has also enhanced the market in the country. The consumption of candy, pastilles, gum, and nougat is expected to increase as alternatives to chocolate, and this trend has been driving local players to invest significantly in the sugar confectionary market in Argentina.
According to the report titled "Argentina Confectionary Market Research Report, 2027", published by Actual Market Research, the sugar confectionery market is to grow rapidly at a CAGR of around 19% during the period. Though Argentina has the lowest market share in the sugar confectionery industry over the forecast period, it is projected to grow exorbitantly. Chewy, hard-boiled, and novelty together constitute nearly 70% of the market share. Sugar-free candies are expected to drive future market trends as consumers demand healthy and low-sugar candies. Though convenience stores remain the hot selling spot for sugar confectioneries, e-commerce sales are expected to grow over the next few years.
Argentina produces sugarcane on a large scale and exports sugar to other countries. The US imports sugar, beet sugar, sugar syrup, and molasses from Argentina. In 2020–2021, sugarcane production was a surplus as bioethanol consumption was low due to the pandemic and more sugar was milled. Hence, it resulted in more exports of sugar from the country.
Candies are increasingly being infused with medicated ingredients widely used in the formulation of drugs for conditions such as colds, respiratory tract congestion, cough, and allergies. This segment is projected to expand at the fastest pace by 2023 owing to its wide product range, especially in children’s medications. Rapidly evolving technology, new product development, and ongoing research and activities in this industry are foreseen to trigger demand for new flavour profiles and ingredients. This factor is likely to spur demand for sugar confectioneries.
The growing attraction of these sugar-filled treats amongst customers of all ages is attributed to their nice sweet taste and variety of flavours. Their organoleptic properties, is the main reasons for its widespread popularity and a major contributor to market development. In addition, there is a growing trend of giving confectionery products as gifts on special occasions, including anniversaries, birthdays, and festivals, which is further likely to work in favour of the sugar confectionery market in the near future.
The pandemic put the convenience stores market in a beneficial position as consumers’ movements were restricted and they opted to shop in nearby stores. These would be continued to be valued by Argentine households as they offer a wide range of products without the requirement to travel great distances. In addition, on-going, regular price promotions will continue to appeal to Argentinians who have limited disposable income. As soaring inflation is expected to continue to eat away at consumers’ purchasing power over the forecast period, convenience stores’ private label will be increasingly important, as convenience stores look to compete with other grocery channels such as discounters. Private-label brands are expected to remain attractive for customers due to their good price-to-quality ratio. Private label is becoming increasingly important as consumers look for affordability.
To broaden their horizons and achieve a strategic edge in the market, the leading players are focusing heavily on social media marketing, advertisement promotions, and promotional events. In addition to that, these companies are making significant attempts to access the markets of developing countries in order to take advantage of the attractive business prospects. The small traders, numerous malls, convenience stores, grocery stores, and department stores all contribute significantly to the expansion of the sugar confectionery market in the country.
Arcor was the first company to produce sugar confectionery in Argentina. That started back in 1951. Today, it has become the main food company in Latin America, with offerings all over the world. Its main brands include Topline, Bigtime, Poosh!, Menthoplus, Mr. Pop’s, Mogul, Butter Toffees, 7Belo, Alka, and Big. It has a great variety of confectionery products, such as candies (filled, hard, sour, crystal, and soft), milk candies, gummy candies, lollipops in different shapes, chewing gum (sugar-free or not), jellies, nougat candies (turrones), tablets, milk candies, and marshmallows. It also manufactures important seasonal products at a regional level on relevant dates for consumers, such as Christmas and Halloween. It also manufactures sugar-free candies and menthols in different flavours.
Some of the best candy stores in Argentina are Dr.Candy, Truppi, Dulce de Leche & Co., La Pinata, Cocholate, Havanna, Golosweet, Candy Planet, Bomboneria Cabildo, and others. Candy Kiosco, as they are known in Argentina, are very popular and are the most common format for selling sugar confectioneries in the country. They can be found at very short distances and also in a small room of a house in which windows overlook the road. However, many of them are now converted into maxiquioscos or chains of kiosks. The best candies are Sugus, Palitos de la Selva, yapa, and mogul. Sugus were introduced in 1931, which are crunchy from the outside and soft from the inside, and are famously called the sweeter and softer version of Skittles. Palitos de la Selva sticks were introduced in 1950, which were strawberry flavoured or white vanilla flavoured and wrapped in a jungle concept. Yapa are little sugar bites with different flavours that are most commonly served during birthday parties. Moguls are jelly gummies that are loved by everyone. Other popular candies are tutti-frutti flavoured Flyn Paff candies, Pico Dulce lollipops, and the classic Billiken candies.
Lockdowns in 2020 and continuing restrictions in 2021 disrupted the supply chain, posing challenges for manufacturers in the sugar confectionery market. In 2020, the pandemic outbreak deteriorated the category’s performance due to a reduction in impulse purchases amongst consumers. However, it resulted into a surplus sugarcane production which was milled into sugar and excess was exported to other countries. Also, since the lockdowns were imposed, there were no gatherings, weddings, or birthday parties, and thus there were fewer people to be consumed. However, in 2021, the economy recovered at a slower pace than earlier. As consumers were looking to minimise the time and money spent in stores, they focused on buying the essentials. Sugar confectionery is not essential and thus was not considered a priority. People tend to look for familiarity and affordable pleasures in times of crisis. That offers brands the opportunity to recapture consumers they may have lost and to gain new fans through great-tasting, fun products that also have functional benefits and better-for-you claims. Intense competition, pricing issues, and shifting consumer preferences will continue to put downward pressure on vendors’ profit margins.
Considered in this report
• Geography: Argentina
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027
Aspects covered in this report
• Argentina Sugar Confectionery market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By product type in the report:
• Hard boiled sweets
• Plain Mints
• Others (Nut, coconut, marshmallows, fudges, medicated throat lozenges)
By sales channel in the report:
• Supermarkets/ hypermarkets
• Convenience stores
• Pharmacy & drug stores
• E-commerce retailers
By age group in the report:
• Children (1-20 yrs)
• Adult (21-55 yrs)
• Geriatric (56 & above)
The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to sugar confectionery industry, chocolate industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
List of Figures
Figure 1: Argentina Sugar Confectionary Market Size By Value 2016 to 2027F (In USD Billions)
Figure 2: Argentina Sugar Confectionary Market Share By Sales Channel (2016, 2021 & 2027F)
Figure 3: Argentina Sugar Confectionary Market Share By Age Group (2016, 2021 & 2027F)
Figure 4: Market Attractiveness Index, By Product Type
Figure 5: Market Attractiveness Index, By Sales Channel
Figure 6: Market Attractiveness Index, By Age Group
Figure-7: Porter's Five Forces Meter By Argentina Sugar Confectionary Market
List of Table
Table 1: Argentina Sugar Geographic Details (2020)
Table 2: Argentina Sugar Confectionary Market Share By Product Type (2016,2021, 2027F)
Table 3: Argentina Sugar Confectionary Market Size of Hard Boiled Sweets (2016 to 2027F) (in USD Billion)
Table 4: Argentina Sugar Confectionary Market Size of Plain Mints (2016 to 2027F) (in USD Billion)
Table 5: Argentina Sugar Confectionary Market Size of Caramel / Taffy (2016 to 2027F) (in USD Billion)
Table 6: Argentina Sugar Confectionary Market Size of Chewy (2016 to 2027F) (in USD Billion)
Table 7: Argentina Sugar Confectionary Market Size of Novelty (2016 to 2027F) (in USD Billion)
Table 8: Argentina Sugar Confectionary Market Size of Liquorice (2016 to 2027F) (in USD Billion)
Table 9: Argentina Sugar Confectionary Market Size of Sugar-free (2016 to 2027F) (in USD Billion)
Table 10: Argentina Sugar Confectionary Market Size of Others (2016 to 2027F) (in USD Billion)
Table 11: Argentina Sugar Confectionary Market Size By Supermarkets / Hypermarekts (2016 to 2027F) (in USD Billion)
Table 12: Argentina Sugar Confectionary Market Size By Convenience Stores (2016 to 2027F) (in USD Billion)
Table 13: Argentina Sugar Confectionary Market Size By Pharmaceutical & Drug Stores (2016 to 2027F) (in USD Billion)
Table 14: Argentina Sugar Confectionary Market Size By E-commerce (2016 to 2027F) (in USD Billion)
Table 15: Argentina Sugar Confectionary Market Size By Others (2016 to 2027F) (in USD Billion)
Table 16: Argentina Sugar Confectionary Market Size By By Children (1-19yrs) (2016 to 2027F) (in USD Billion)
Table 17: Argentina Sugar Confectionary Market Size By Adults (20-55yrs) (2016 to 2027F) (in USD Billion)
Table 18: Key Facts By Company 1
Table 19: Key Facts By Company 2
Table 20: Key Facts By Company 3
Table 21: Key Facts By Company 4
Table 22: Key Facts By Company 5
Table 23: Key Facts By Company 6
Table 24: Key Facts By Company 7
Table 25: Key Facts By Company 8