In 2006, the confectionery industry was one of the most dynamic and innovative sectors within the food industry. Although its fragmented nature across the globe allowed the entrance of new competitors, consumers favored established brands and new entrants were required to make large investments in marketing and advertising to build brand awareness. As opposed to other food segments, the confectionery industry also depended on consumer impulse purchases, which challenged emerging and established manufacturers to preserve affordability, availability, and attractive packaging and presentation of their products. Moreover, new product development was essential to protecting and increasing market share, with changes in consumer attitudes and preferences demanding ongoing innovation in new areas such as "limited editions," "sugar-free" products, and new product lines. This note explores the global confectionery industry in 2006 and also examines specific forces at play in the Latin American confectionary market.
