Global scenario of Confectionary industry: The confectionary market consists of chocolates, gum, cereal bars and sugar confectionary. The global confectionary market grew by 3% in 2006 to reach a value of 100.9 billion dollars. Chocolate sales dominate, accounting for 54.4% of the global confectionery markets value. Out of total confectionary market worldwide, Europe generates 46.6% of the total global confectionary markets value. It has been projected that in 2011, the global confectionary market will become to the value of 116 billion dollars, an increase of 14.9% since 2006. By the year 2011, the global confectionary market is forecast to have a volume of 15.1 billion kg, an increase of 9.9% since 2006. (All the data has been extracted from the Data Monitor report on global confectionary, Feb 2008). The confectionary market in regions such as Western Europe and North America has become mature and nearing to saturation. Consumption level in these areas reached to nearly static position. Confectionary market is growing mostly in Central and Eastern Europe, India and China. It has been forecasted that global confectionary market between 2006 and 2010, grow @16% in value terms reaching more than 145 billion dollars. Volume sales have been expected to over 17.8 million tones by 2010. So it has been obvious that globally, confectionery market is expected to grow and Cadbury being the largest company after merger with Hershey it has strengthen their respective positions in the higher-growth markets for healthier forms of confectionery. Confectionary market worldwide is very competitive and it could be very well understood by the fact that the global confectionery market remains relatively fragmented, with the top six manufacturers accounting for less than half (45%) of value sales.
Significance for Cadbury: The Company, Cadbury Schweppes is one of the largest confectionary companies based in UK and operates in almost 30 countries. UK has a well grown confectionery industry as a sub-sector of the British food industry. Within the European confectionery industry, the UK confectionery industry leads the field and the UK is unlikely to lose its place as the leading consumer of confectionery products. It has been estimated that in the last ten years consumer expenditure on food has increased to double but the expenditure on confectionary has tripled. It has been contributing considerably to British economy. This situation clearly shows that if Cadbury has to expand its business, it has to move in the areas like India, China, and East Europe etc. Market of confectionery is growing but in the developed country where market growth has stagnated, companies are trying various strategies like expanding its business in the areas which ultimately providing them proper opportunities to grow. Cadbury have 8 major competitors but one of the major competitors has merged with it and provided strategic mileage to the company. This market research has shown the direction of change as well as the direction of progress for Cadbury. It should know its competitors, which are mainly Mass Inc, Hearshey Food Corporation, Nestle SA, Ferrere etc. Most of the companies have similar types of distribution channel and developing new product range. Looking at the market situation it has been very obvious that confectionary market has the potential to grow and at the same time companies also have motivation and zeal to move ahead.