New research from Bord Bia has found that European and International customers drove demand for Irish chocolate and bakery products last year recording growth of 3% and 4% respectively, offsetting the reduction in chocolate sales to the UK.
In addition, the development of new customers particularly in Continental European markets provides a foundation for further growth opportunities, notably for bakery products.
Overall chocolate confectionery exports reached €255 million with exports of sugar based products boosted by a recovery in consumer spending across key markets. Lower sales to the UK were eased by increased exports to Continental European markets including Germany, France and Belgium. Outside Europe the main growth market was the United States.
Bakery products including breads, cakes and snacks showed further growth in 2016 rising to around €270 million. Despite the challenging currency environment higher sales were reported to the UK on the back of new healthier products and a rise in demand for gluten free products. Other growth markets included the Nordics and North America.
Bord Bia and confectionery exporters are aiming to increase demand for Irish confectionery at this week`s International Sweets and Biscuits Fair (ISM) in Cologne, Germany, the world’s largest trade fair for the confectionery and snacks industry.
This is the 47th year of ISM with over 1,600 companies participating attracting around 38,500 visitors from 130 countries.
Bord Bia is coordinating the presence of six companies on two Ireland stands under the umbrella of Origin Green, the sustainability programme for the Irish food and drink industry. The companies participating include:
Butler’s Chocolates
(Broderick's) Ina Handmade Desserts
Keogh’s Crisps
Lir Chocolates
Pandora Bell
East Coast Bakehouse
Speaking at ISM, Bord Bia Sector Manager, Miriam Tuomey said, "The market environment for confectionery remained mixed in 2016 as competitive pressures persisted, particularly in the second half of the year. Export drivers for the year ahead include currency uncertainty, new product design; focus on innovative product solutions and high customer service levels, as well as growth in premium gourmet style products."
She added, "Indications in the UK suggest that overall market demand will remain positive; however competitiveness issues driven by exchange rate movements will remain the key challenge. Growth prospects for chocolate based confectionery will be dependent on brand awareness and the ability of the sector to diversify further."
Source: www.businessworld.ie
