I’m no economics expert, but it’s a question we’re all asking, whether about the confectionery industry or our own personal circumstances. Brexit is certainly going to have impacts – good and bad – whether we like it or not.
I’ve read that Euromonitor is now predicting that post Brexit, the compound annual growth rate for UK confectionery will decline by -0.2% from 2015 to 2020. Only time will actually tell.
Figures aside, a large proportion of the food industry was in favour of Remain, with 70% of Food & Drink Federation members backing this stance. Indeed, Mars publically backed Remain and Mondelez, post Brexit has stated that it will continue to remain fully committed to the production of confectionery in the UK.
But we have a Brexit situation and not a Remain.
Many raw materials for confectionery are clearly imported, most notably cacao and sugar. Packaging is often made in the Far East. How the pound continues to fair and what trading agreements are set up will most certainly affect the cost of production and the leading manufacturers will be acutely aware of this.
UK confectionery ends up in the hands of many ex-patriot countries and this trade might yet be affected by the political situation over time. Though not all of these destinations are in the EU and so the outcomes might be more fragmented.
So there is definitely going to be a Brexit impact and there’s quite a bit of “wait and see” to happen yet. Rest assured though, the UK is not going to fall out of love with confectionery for anything or anyone – demand will still continue and whilst price sensitive in some areas, we’ll continue to enjoy our sweet treats, come what may.