Cocoa-free sugar confectionery market in MERCOSUR

Earlier Report Observations

The market for cocoa-free sugar confectionery in MERCOSUR saw its volume grow from 67.0 thousand tons in 2018 to 66.2 thousand tons in 2022, despite a drop to 57.7 thousand tons in 2020. The decline in 2020 was influenced by a tax clarification in Brazil that reclassified chocolate coatings containing cocoa out of the cocoa-free product category, effectively reducing the reported market size for cocoa-free items.

Market recovery and growth through 2022 were supported by rising consumer demand for sugar-free products in Brazil, driven by preferences for balanced diets and dietary restrictions, alongside fiscal measures such as the reduction in the ICMS tax calculation base for cocoa-free confectionery in São Paulo state, implemented from 2019 onward. These factors improved conditions for producers and wholesalers, potentially stimulating demand. However, in 2023, the market volume contracted sharply to 43.3 thousand tons, marking a significant shift in the period's trajectory.

Production cocoa-free sugar confectionery in MERCOSUR

In kind, 2017-2020, K t

Top producers of cocoa-free sugar confectionery, 2017-2020

World map of production of cocoa-free sugar confectionery, 2017-2020

In 2019, MERCOSUR produced 131.8 thousand tons of cocoa-free sugar confectionery, marking the highest output during the 2017-2020 period. Production then declined slightly to 130.6 thousand tons in 2020, representing a 0.9% decrease from the previous year. The lowest production level was recorded in 2018 at 115.1 thousand tons. Over the entire four-year span, production grew by 10.6%, with an average annual growth rate of 3.4%. The most significant year-over-year increase occurred in 2019 at 14.5%, while the largest decline was seen in 2018 at 2.5%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two consecutive years of growth, MERCOSUR's cocoa-free sugar confectionery production value declined in 2020. Output was valued at 250.4 million US dollars that year, reflecting a 7.7% decrease compared to 2019. The peak value was recorded in 2019 at 271.3 million US dollars. Over the 2017-2020 period, production value increased by 2.5%, with an average annual growth rate of 0.8%. The largest year-over-year increase occurred in 2018 at 6.4%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports cocoa-free sugar confectionery from MERCOSUR

Exports in kind, t

In 2020, MERCOSUR exported 84 074 tons of cocoa-free sugar confectionery, showing a modest 3.0% decline compared to the previous year. The lowest export volume during the 2017-2020 period was recorded in 2018 at 73 088 tons. Over the four-year span, exports decreased by 6.4%, with an average annual decline of 2.2%. The most significant year-over-year drop occurred in 2018 at 18.6%, while the largest increase was recorded in 2019, also at 18.6%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

During the 2017-2020 period, the United States, Chile, and Bolivia were notable but not dominant buyers of cocoa-free sugar confectionery from MERCOSUR. The United States accounted for 22.2% of exports in volume, Chile for 6.2%, and Bolivia for 4.6%. Together, these three countries represented just 32.9% of total export volume, indicating a diversified export market.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

MERCOSUR's cocoa-free sugar confectionery exports were valued at 161.2 million US dollars in 2020, representing a 9.7% decrease from 2019. Over the 2017-2020 period, export value declined by 13.3%, with an average annual decrease of 4.6%. The most significant year-over-year drop occurred in 2018 at 11.1%, while the largest increase was recorded in 2019 at 8.1%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

The buyer portfolio for MERCOSUR's cocoa-free sugar confectionery exports was broad during 2017-2020. The United States accounted for 24.4% of export value, Chile for 7.5%, and Bolivia for 4.3%. Together, these three countries contributed only 36.2% of total export value, with many other countries holding smaller but meaningful shares, reflecting a well-diversified export structure.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports cocoa-free sugar confectionery to MERCOSUR

Imports in kind, t

MERCOSUR's imports of cocoa-free sugar confectionery declined for the second consecutive year in 2020, reaching 11 197 tons. This represented a substantial 53.3% decrease compared to 2019. The peak import volume was recorded in 2018 at 25 074 tons. Over the 2017-2020 period, imports decreased by 45.4%, with an average annual decline of 18.2%. The largest year-over-year increase occurred in 2018 at 22.4%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

The import structure for cocoa-free sugar confectionery in MERCOSUR showed significant diversification during 2017-2020. China accounted for 7.2% of import volume, Ecuador for 6.9%, and Mexico for 4.4%. Together, these three countries represented only 18.5% of total imports, while the remaining 81.5% was distributed among numerous smaller markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

MERCOSUR's imports of cocoa-free sugar confectionery declined for the third consecutive year in 2020, with import value reaching 57.6 million US dollars. This represented a sharp 31.4% contraction compared to the previous year. Between 2017 and 2020, imports decreased by 45.3%, equating to an average annual decline of 18.2%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

During 2017-2020, Ecuador, China, and Mexico formed the largest group of suppliers of cocoa-free sugar confectionery to MERCOSUR. Ecuador accounted for 13.2% of import value, China for 8.5%, and Mexico for 4.6%. However, their combined contribution was limited to 26.3% of total import value, reflecting a highly diversified supplier structure with many countries holding smaller shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020