Romanian chocolate market decreased by 10.7% in 2020

The turnover of chocolate traders in Romania increased by 11%, reaching a new record of 4.1 billion lei in 2020. Even though Romanians’ appetite for sweets is increasing, the local production fell by almost 1 billion lei in the pandemic year, to 640 million lei. Overall, the chocolate market (production and trade) decreased by 10.7% compared to the peak of 2019, reaching a turnover of 4.8 billion lei in 2020. 

“The chocolate market suffered in 2020, and for 2021 we estimate it to recover and to increase by about 10% to over 5.2 billion lei. On top of the negative impact of the pandemic (especially in the production segment), NESTLE’s strategic decision in early 2019 to close down the Timisoara factory is also relevant. Company representatives then cited new consumer patterns and labour shortages, in a competitive environment. Therefore, in 2020 NESTLE also changed its main scope of activity from 1082 NACE code – Manufacture of cocoa, chocolate and sugar confectionery to the 4639 NACE code – Non-specialised wholesale of food, beverages and tobacco. As part of this analysis, we decided to include the company in the trade sub-segment of the chocolate market in order to ensure data continuity and consistency” said Diana Florescu, KeysFin economic analyst.

LEADEROARD – THE MOST IMPORTANT PLAYERS IN THE LOCAL CHOCOLATE MARKET* 

According to KeysFin’s analysis, in the production segment, KANDIA DULCE SA became the main player in the market, with a turnover of 141 million lei (22.3% of production), followed by HEIDI CHOCOLAT SA (88.8 million lei), RAP CONFIECTIONERY SRL (66 million lei), MUELLER & FRIENDS (32.5 million lei) and MARCO POLO VE SRL (almost lei 20 million) in 2020. 

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In the trade sub-segment, NESTLE ROMANIA SRL continued to lead with a turnover of 933 million lei (22.6% of trade), followed by FERRERO ROMANIA SRL (880 million lei), ALMIRA TRADE SRL (166.6 million lei), PFEIFER & LANGEN ROMANIA SRL (166 million lei) and ROSHEN ONE SRL (123 million lei) in 2020. 

FEWER COMPANIES & EMPLOYEES 

The number of employees decreased by 18% compared to 2019, to 6.3 thousand employees, which also meant a decrease in personnel expenses of almost 20%, to 338 million lei in 2020. 

The number of companies also decreased by 1% compared to 2019, to 774 in 2020. Of these, 406 reported a profit, 274 made a loss, with the remainder ending 2020 with a null result. 

Overall, the net result of the chocolate market decreased by 11% compared to 2019, reaching 194.6 million lei in 2020. 

RECORD LATE PAYMENTS 

The late payments (including arrears to suppliers and to the state) of the chocolate market companies reached the highest level in history in 2020, increasing by 54% to 625 million lei. Of these, the overdue payments to suppliers registered the largest increase of 180%, reaching 192 million lei in 2020. 

The Days Payable Outstanding indicator also increased by 5% from 2019, to 106 days in 2020. 

NEW INSOLVENCIES IN THE CHOCOLATE MARKET 

According to the data provided by the Trade Register in the Insolvency Bulletin, new insolvencies appeared in the chocolate market, with 2 players in 2020 and another company in 2021. 

In the context of the overall uncertainty arising from the pandemic, it is appropriate for managers to verify the companies they intend to do business with, to prevent commercial risks such as the risk of default of payments, insolvency, bankruptcy, etc. 

Business information solutions are increasingly being used by the big players in the market, whether they are entrepreneurs, investors, managers or creditors, they are changing their perception and practice in mitigating risks, precisely because sudden changes in the market can destabilize a company, especially if the information in making a decision with a major business impact is incomplete. 

GROWING APPETITE FOR SWEETS 

According to data from the National Institute of Statistics, in 2020, a Romanian consumed an average of 206 g of chocolate, sweets, Turkish delights and other sugar confectionery per month, 3% more than in 2019. 

At the end of the first semester of 2021 (the latest data available), the monthly average consumption was of 208 g per person, after it had reached 224 g in the first quarter. A Romanian consumed on average only 157 grams of chocolate, sweets, Turkish delights and other sugar confectionery products per month in 2016, compared to 206 grams in 2020. 

Chocolate therefore remains in the top preferences of Romanians, whether talking about the traditional box of chocolate offered on Valentine’s Day, something sweet given on Mother’s Day or simply a small comfort food moment in everyday life, especially in pandemic conditions.