Confectionery packaging trends 2020

Confectionery is a commodity commonly used in daily life and the revenue from the confectionery market is not small and growing. How do manufacturers usually choose 2019-2020 confectionery packaging? What will be the trend of confectionery packaging 2019-2020? Let’s find out with Binh Minh Packaging through the article below.

Overview of the confectionery market in Vietnam in recent years

From the beginning of 2015 until now, the import tax on confectionery products from ASEAN has been reduced to 0-5% (according to Vietnam’s ATIGA tax reduction roadmap for the period 2015-2019). The domestic confectionery market has faced the massive appearance of imported products from many countries in the region such as Indonesia, Malaysia, Thailand… These imported products are diverse in types. , design and quality. 

The consumption demand of the domestic market according to BMI’s research results is forecasted to be VND 40,000 billion by 2018.

Vietnam’s population is large and young, confectionery consumption per capita is just over 2kg/person/year, lower than the world’s 3kg/person/year. And 65% of the rural population has a very modest consumption of confectionery compared to its potential. Confectionery market share is gradually being dominated by foreign brands, domestic names such as Bibica, Hai Ha Confectionery, Huu Nghi Food only account for about 12% of the market share.

Kinh Do Group transferred 20% of the confectionery business to Modeleze International. Lotte Group also holds a 44% stake in Bibica, and PAN has just increased its ownership in BBC to 43.73% at the end of October 2016. In the context of deeper and deeper integration, competitive pressure with imported confectionery is also increasingly fierce and is likely to be acquired by foreign investors.

In recent years, the confectionery industry in Vietnam is experiencing a high and stable growth rate, with an annual output of over 150 thousand tons, revenue in 2014 reaching VND 27 trillion (BD1). The average annual revenue growth of the whole industry in the period 2010 – 2014 reached 10%. Meanwhile, this figure in the period 2006 – 2010 is 35%, forecast from 2015 – 2020 the growth rate is about 8 – 9%.

Confectionery packaging trends 

Along with the development of the confectionery industry is the packaging industry. Therefore, manufacturers must also pay attention to current confectionery packaging trends. 

The packaging industry in Vietnam is assessed by many research units as a relatively large industry (approximately $6.3 billion according to Stoxplus’s calculations in 2014) with many types of products, accounting for a large proportion. most of which is plastic packaging (64%). The growth rate of the industry is 5 – 16% because it is an auxiliary industry and has a very close relationship with important industries such as confectionery, pharmaceuticals, alcohol or cosmetics.

According to MBS’s analysis report, the growth of the packaging industry will remain at a double-digit rate in the coming time because the consumer industries are experiencing high growth rates. 

However, the scale of packaging enterprises in the country is not large, the market only has about 10 – 20 enterprises with a turnover of over 30 million USD per year and many other units with a turnover of less than 5 million USD. . In which, packaging companies are always assessed as having low power when negotiating with partners.

In addition, enterprises in the industry are also exposed to large exchange rate risks and have limited initiative in production. The reason is that most of the machinery as well as production lines and raw materials are imported, with the plastic packaging industry alone accounting for 90%.

Enterprises are also increasingly interested in product packaging as a basis for improving competitiveness. Packaging is concerned with the preservation, cost of the product and is a big part of the soul of a brand. While packaging designers are confused to find direction for confectionery brands, leading packaging experts have suggestions for confectionery packaging trends 2019 – 2020.

Currently, being invested heavily in commodity production technologies, complex packaging is currently applying modern techniques to packaging products in many industries and fields, especially cake packaging. candy.

Source: Confectionery packaging trends 2019-2020 – Binh Minh Packaging.