Dated: 1 April 2008
The confectionery market in Vietnam is on the upwards climb. Datamonitor forecasts that it will be worth $707 million in 2011. By the end of 2011, the sugar-confectionery category is forecast to grab the lion's share of the market, commanding 48.1 percent of the total value of the market, followed by chocolate and gum with a 40 percent and 7.6 percent market share respectively. Overall, the confectionery market is forecast to increase by $80.3 million, with an expected CAGR of 2.4 percent over the fi ve-year period spanning 2006-2011. Robyn Newman, Corporate Affairs manager of Cadbury Schweppes Australia & New Zealand agrees with this upward trajectory, predicting that the expected growth of confectionery in Vietnam is 10 percent in 2008. Globally, sugar confectionery (hard boiled sweets, mints, caramels and toffees, gums and jellies, medicated confectionery) is forecast to maintain its position as the leading category in the total confectionery market. But it is expected to see little year-on-year growth of 1.7 percent between 2006 and 2011, accounting for 48.1 percent of the total confectionery market in 2011–a drop of 1.7 percent compared to a market share of 49.9 percent in 2006. Meanwhile, the Vietnamese sugar confectionery market is expected to rise more dramatically to $340.1 million by the end of 2011–a sales increase of $27.7 million for the fi ve-year period spanning 2006-2011.
In Vietnam, the chocolate category will hold its own, as the second largest category. Chocolate is expected to see a year-on-year growth of 2.9 percent between 2006 and 2011 and account for 40 percent of the total market in 2011-a rise of 0.9 percent compared to a market share of 39.1 percent in 2006. The Vietnamese gum market is expected to rise to $53.6 million by the end of 2011–a sales increase of $9.3 million for the fi ve-year period spanning 2006-2011. Cadbury, which distributes its products through Kinh Do in Vietnam, entered the gum market using its Clorets gum brand as a spearhead. Since its entry in 2006, it has seen increasingly competitive activity in the segment from its competitors Wrigley, Perfetti Van Melle, and Lotte. As a result, Newman says that Cadbury has increased its media spending, adding that "signifi cant changes to the trade structure are beginning, with growth in the modern trade outlets", but cautions that consumers are still more comfortable buying confectionery from general stores and street vendors.
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