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Hostile commodity prices stunt growth for German confectioners: BDSI

By Oliver Nieburg+

20-Feb-2014
Last updated on 20-Feb-2014 at 13:39 GMT2014-02-20T13:39:51Z

Germany confectionery industry troubled by volatile commodity prices in 2013
Germany confectionery industry troubled by volatile commodity prices in 2013

Strong commodity price increases in 2013 impeded growth for the German confectionery, according to the Germany Confectionery Industry Association’s (BDSI’s) annual review.

Rising prices for sugar, cocoa butter, almonds, hazelnuts and milk powder put major pressure on German confectioners last year, but the industry did register some growth.

State of German confectionery in 2013

Confectionery production volumes in Germany rose 3.7% to 3.96 million metric tons (MT), which took value sales for German-produced confectionery up 2.8% globally to €12.49bn ($17bn).

66% of volumes produced in Germany were sold in the German market with domestic value sales totalling €9.1bn ($12.4bn), up 3% on last year.

The BDSI complained that EU sugar quotas had led to an artificial shortage of the raw material and high prices throughout the year. It said that competitors in the global market paid 40% less than European sugar users during the year. The EU plans to phase out the sugar quota in 2017, a move welcomed by the trade body.

Outlook

The BDSI said it was positive for the year ahead and noted great potential for confectioners during the upcoming soccer World Cup.

 “The biggest concern is the manufacturers will continue to see the tense situation in the commodity markets and the further development of the energy and logistics costs,” said the BDSI.

The organization has high hopes for export markets in 2014. Around 4% more German-produced confectionery was exported in 2013 compared to the previous year. Export sales for German confectionery rose 2.8% in 2013 to €6.2bn ($8.5bn).

2013 segment overview

Chocolate

Volume - 1.08 MT
Volume Growth - +4.2%
Value Sales - €5.35 billion
Value sales growth – +4.5%
Per capita consumption – 9.71 kg

Sugar Confectionery

Volume - 536,000 MT
Volume Growth – 0.1%
Value Sales - € 1.78 billion
Value sales growth – +4%
Per capita consumption – 5.66 kg

Chewing gum

Value Sales - €635.9 million
Value sales decline – -3.2%

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