Confectionery volumes are forecast to decline faster than any other packaged food category after the UK voted to leave the European Union.
Market analysts Euromonitor International predict a compound annual growth rate (CAGR) decline of -0.2% for UK confectionery from 2015 to 2020.
Confectionery 'most affected'
Overall, Euromonitor does not foresee a huge impact on consumer spending for UK goods, but discretionary items such as confectionery will be the "most-affected", it says.
UK consumers were the second largest purchases of the combined category biscuits, snack bars, chocolate confectionary and crisps among EU members in 2015, behind only Belgium.
The UK consumed 25 Kg per capita of these categories combined last year, according to Euromonitor.
CAOBISCO 'disappointed' and concerned about potential trade barriers
European Confectionery Association CAOBISCO said its members were "disappointed" by the Brexit vote.
"This historic decision will have consequences across all Member States," said a CAOBISCO spokesperson.
According to the trade body, the UK is a key destination of intra-EU exports of chocolate, biscuit and confectionery products. For example, it is the second largest export market of Germany.
"Companies, and in particular SMEs, are therefore concerned that a separation would cause trade barriers and regulatory complications in the future," said the CAOBISCO spokesperson, adding it would depend if the UK remains a member of the European Economic Area.
CAOBISCO is calling for a revamped, more citizen-oriented EU project that will encourage its members to invest in the EU.
Majority of UK food industry favoured Remair
UK trade body the Food and Drink Federation (FDF) said 70% of its members favoured a vote for the UK to remain in the EU in a poll released in March.
Ian Wright, director general at the FDF, said: "It's inevitable in the light of those results that the majority of FDF members will regard this as a disappointing result for the food and drink industry."
nestle to 'operate in the I. final course'
Nestle Confectionery headquarters is based in York, UK, where it also has a product technology centre. Nestle UK exports around £35om ($479m) of products per year to 70 countries worldwide. Its largest export sales come in the EU.
A Nestle spokesperson said: "We note the outcome of the referendum in the UK and the decision of the British electorate to leave the European Union. "The practical consequences of this decision will become clearer in the coming months. Nestle will continue to operate in the normal course and will follow developments closely."
'Rare had supported Remain
Mars' Wrigley subsidiary is the UK's leading gum maker. Wrigley's UK factory and head office are based in Plymouth, where 35% of volumes are exported to Europe and beyond. Mars Chocolate also operates a factory based in Slough, Berkshire.
Mars had supported the Remain campaign as it believes in the benefits of the EU single market.
"Although we supported remaining within the EU, today's result does not affect our commitment to our UK operations in Europe and growing our UK businesses," said a Mars spokesperson. "As negotiations and discussions commence to determine the nature of the UK's future trading relationship with the EU, we hope that decisions are made swiftly in order to give our business the certainty it needs."
