New Product Development (NPD) in Sweets Market: Introduction
Sweets are among the most popular types of food consumed worldwide. However, the shady side of sugary items has restrained the consumption of sweets in recent years. With consumers increasingly gravitating towards healthy and low-in-calories eatables, manufacturers in food and beverage sector are under high pressure to offer customized products. Companies are increasingly incorporating innovation to replace added sugar and artificial sweeteners with natural sweeteners in their products and beverages.
New Product Development (NPD) in Sweets Market: Competitive Landscape
- In March 2018, Swiss multinational food and drink company Nestlé structured sugar made with all-natural ingredients. Nestlés structured sugar can help reduce sugary-content by roughly 40% in confectionery products, such as chocolates. This revolutionary structured sugar remains stable only in dry products.
- In January 2018, Bayn Europe, a private formulation developer in sugar reduction sector developed cloud-based platform to catalyze R&D of food producers, and accelerate the penetration of lower sugar content products. The launch of initial prototype of this platform is expected to happen next year.
Founded in 2009, Sweden-based Bayn Europe is an independent formulation developer, which creates sugar reduction solutions for the F&B sector. Bayn Europe offers cost-effective ingredients as well as total solutions for sugar reduction. The company deals in low-calorie content products based on natural sweeteners.
Founded in 1866 and headquartered in Vevey, Switzerland, Nestlé S.A along with its subsidiaries, operates as an F&B company. With an extensive product portfolio, the company operates across Zone Europe, Middle East & North Africa; Zone Asia, Oceania & sub-Saharan Africa; Zone Americas; and Nestlé Waters segments.
Mondelez International, Inc.
Founded in 2000, Mondelez International, Inc., is an American multinational confectionery, food & beverage company headquartered in Illinois and has roughly 83,000 employees around the world. Mondelez International’s primary snack brand portfolio includes Milka, Cadbury & Toblerone chocolates; LU, Oreo, and belVita biscuits; Halls candies; and Trident gums & Tang powdered beverages.
Dori Alimentos S.A.
Founded in 1967 and headquartered in Brazil, Dori Alimentos S.A. manufactures, exports, and sells candies, jellies, candies, and confectioneries in Brazil and beyond. Dori Alimentos S.A. mainly operates in the United States, Angola, Canada, Argentina, and Uruguay.
Sensient Technologies Corporation
Founded in 1882, Sensient Technologies together with its subsidiaries, creates, manufactures, & markets flavors, colors, and fragrances in Europe, North America, and the Asia Pacific, and internationally. Sensient Technologies Corporation operates through three segments, including Color Group, Flavors & Fragrances Group, and Asia Pacific Group.
New Product Development (NPD) in Sweets Market: Dynamics
Negative Impact of Added-Sugar Prompting New Product Development in Sweets
Companies operating in food and beverage industry are hard pressed to lessen the added sugar content and artificial sweeteners from a wide range of processed food products and drinks. This is primarily due to the negative impact of sugar on the health of growing population, for example, diabetes and obesity cases are growing significantly in different parts of the world. As obesity leads to cardiovascular disease, high blood pressure, and diabetes, which are as a whole known as metabolic syndrome, manufacturers are focusing on innovative reduced sugar and natural/fruit sweeteners based sweets.
Sweet Manufacturers’ Eying New Product Development to Appeal Wider Consumer Base
Shifting consumer preference for healthy and low-in-calories products have prompted several companies to collaborate with corporate bodies to reduce the sugar content of their offerings. Growing number of sweets manufacturers are forming partnerships with natural sweetener providers to avoid the adoption of artificial sweeteners, without compromising the sensory and technological properties of these products. Several companies have even introduced reduced sugar content products to the shelves. For instance, Mondelez is launching a reduced sugar Cadbury Dairy Milk bar in 2019.
Real-Fruit-Based Ingredient Replacing Refined Sugars in RTE Products
Growing consumer health concerns pertaining to high sugar content in wide range of food products have propelled companies in the food & beverages and new product development (NPD) in sweets market to introduce offerings with reduced sugar content. For instance, Gat Foods has recently introduced Fruitlift, an ingredient composed of 90% fruit components in liquid form that can substitute refined sugar in RTE cereals. Fruitlift gives a fruity taste to a product, can be blended into an existing flavor, and also eradicates the need for anti-caking agents, while keeping product texture crisp. A real-fruit based sugar replacement ingredient has the potential to be used in wide range of RTI sweet products such as chocolates and candies to reduce the refined sugar content in them. Such food innovations are fueling the enhancement of existing F&B products. With companies increasingly taking initiatives to introduce reduced sugar containing products, new product development is anticipated to grow significantly in the sweets industry.
New Product Development (NPD) in Sweets Market: Segmentation
Based on distribution channel, market for new innovative products in sweets industry is segmented into:
- Departmental Stores
- Hypermarkets & Supermarkets
- Online Channel
- Convenience Stores
- Indirect Sales
Based on types, market for new innovative products in sweets industry is into:
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.