Chocolate confectionery

Trends Chocolate confectionery is expected to register positive growth during 2012 due to rising consumption, which are in turn derived from rising living standards. Chocolate confectionery remains very popular in Kazakhstan and it is considered to be a very tasty delicacy in spite of the widespread knowledge that excessive consumption of chocolate confectionery is potentially harmful. Chocolate is more often than not purchased in impulse in Kazakhstan. Chocolate confectionery is expected to increase in value by 9% in 2012, rising to KZTI 30. billion, while volume sales are expected to ncrease by 3% to 84,000 tons.

The faster value growth than volume growth during 2012 can be attributed to the fact that Kazakh consumers are becoming more interested in value-added products and this is resulting in average unit price growth. Chocolate confectionery in Kazakhstan is characterized by the presence of several highly competitive domestic producers and a preponderance of imported products, mainly from Russia.

Current situation Domestic player Rakhat JSC is expected to remain the leading player in chocolate confectionery in Kazakhstan in 2012, accounting for a projected 20% of total hocolate confectionery retail value sales.

The company managed to increase its value sales by 8% during 2012, a feat it managed mainly due to the rising demand for its wide range of products and the fact that its brands enjoy widespread availability in a wide range of retail outlets.

The company’s products also enjoy a high degree of loyalty from Kazakh consumers as it has a long history of being one of the largest chocolate confectionery manufacturers in Kazakhstan with the history going back more than 70 years.

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Rakhat JSC offers a wide range of both chocolate confectionery nd sugar confectionery as well as bakery products. Among the company’s leading products in chocolate confectionery is Kazakhstanskiy in plain dark chocolate tablets, while Kara-Kum and Vecher are strong in bagged selflines/softlines.

This has traditionally been the most popular chocolate confectionery category among Kazakh consumers. The second leading company in chocolate confectionery in 2012 is expected to be international producer Mars Inc. , which is present with a wide range of countlines under global brands such as Snickers, Twix, Mars, Bounty, M&M’s and Milky Way. Mars is expected to have managed to increase its value sales in chocolate confectionery by 3% in 2012, accounting for a projected 13% of total chocolate confectionery value sales.

Future possible prospects Chocolate confectionery in Kazakhstan is expected to record a positive performance over the forecast period, increasing in constant value at a CAGR of 3%, rising to KZT149. 9 billion by the end of 2017. Chocolate confectionery is expected to experience higher levels of competition during the forecast period due to rising ressure from Russian producers which actively pursuing increases in the OlstrlDutlon 0T tnelr products ana Dranas ana a stronger presence on grocery retall shelves in Kazakhstan.

As demand for chocolate confectionery is already quite mature in Kazakhstan, many consumers are expected to demand more value-added products. Many Kazakhs are expected to become more attached to the brands to which they already demonstrate a high degree of loyalty as the promotional activities of the categorys leading players are set to boost sales during the forecast period.