Its importance, says suppliers, should not be overlooked. Worth more than £6bn, it is substantially bigger than sectors such as milk, crisps and savoury snacks, fizzy drinks and bread.

And yet, there's been a subtle changing of the guard within the confectionery market as the traditional heavyweights such as chocolate come under fire from new competition, particularly when it comes to health. Meanwhile, there have been some more surprising developments, with the re-emergence of dark chocolate and the continued growth of indulgence and sharing.

"While consumers are increasingly aware that they should be cutting down on the amount of chocolate consumed, we are seeing many people choosing better-quality, more indulgent, premium products when they do eat it," says Gabrielle Bond, trade marketing manager at Bendicks. "Young consumers appear to be leading the way in the 'cutting down and trading up' trend, which is contributing to an increase of sales in premium products like those manufactured by ourselves."

But, first things first: it might seem like a paradox, but healthier confectionery is one of the key emerging trends in what is an ultra-competitive marketplace.

The Natural Confectionery Company, whose products have been sold in the UK by Cadbury Trebor Bassett (CTB) since June - although it remains to be widely seen in the mults - is one of a number of brands that have been winning plaudits from parents looking for more permissible treats for their family. This idea of 'permissibility' is fuelling much of the activity in healthier confectionery, as suppliers improve their products' credentials in light of recent debate about obesity and poor diets.

"Eighty percent of kids' confectionery is bought by adults on behalf of their children," says Graeme Walker, Nestlé UK's trade communications manager. "As parents become increasingly health-conscious, it's even more important for them to find what they believe is permissible confectionery to give to their kids." [see panel below for how brands are addressing this trend].

Others brands have been 'healthy' for some time, and trading on it. "Consumers are becoming much more conscious of their food intake and that of their children, and healthier confectionery options that don't compromise on quality are continuing to grow in appeal," says Tracey Mattock, marketing manager of Fox's Confectionery. "We have committed to using only natural ingredients and since 2002 have used no artificial colours or preservatives, hence the 'clearly better sweets' strapline."

She concedes that most consumers recognise there is a balance to be had and will allow themselves some indulgence as part of a healthy diet - hence the growth of more premium lines and a raft of NPD in this area.

"As we are all leading increasingly busy lives, spoiling ourselves with an indulgent treat is becoming even more important," says Nestlé's Walker. "This is why there has been an increasing shift towards indulgence."

In February, Nestlé launched a new indulgent brand, Heaven, in blocks and 'pearls'. "We did this off the back of the fact that premium blocks (Lindt, Green & Blacks etc) are the fastest-growing area of confectionery," explains Walker, "with sales to 23 June already showing 20% growth."

Walker says Heaven has accounted for 75% of the incremental sales in premium blocks in the past 12 months, while estimates show that 20% of Heaven buyers have traded up from standard blocks, benefiting retailers in terms of incremental sales and profit.

Green & Black's is firmly established at the top end of the market in the multiple sector. It has also enjoyed growth in demand for its products, particularly as consumers become more knowledgeable about food issues. "Consumers are becoming much more savvy, wanting to know what their products are made of and where the ingredients come from," says Carole Welch, marketing manager at Green & Blacks.

She says the growth of organic and ethical products within the confectionery fixture has been a "key trend that we watch very carefully, because it is at the heart of our brand".

"We believe consumers aren't silly - they want to understand what they are paying more for and we are very much about adding value to the category," adds Welch.

Ethical production and sourcing claims appear to be a useful mechanic in developing consumer loyalty, and the emotional connection with chocolate is clear as consumers choose it as a treat, reward or to cheer themselves up - often looking at more indulgent, premium-priced products.

Welch believes one of the important things is that people understand why they are being asked to pay more for a premium product. "We feel that we have a strong story because of the way we source our cocoa, and our ethical underpinning. It's not just something we've added as a line extension," she insisted.

Welch is critical of brands that just "jump on a trend" by launching new products that under-perform. "Retailers are rightly asking for innovation, but it has to be the right kind of innovation," she explains.

"You have to innovate on your core to keep it turning and add value to the retailer, carefully adding products that you are convinced will work for you - which is not always the case."

Despite a slight decline, Mintel estimates the chocolate market to be worth £3.16bn in 2006, roughly half of the total confectionery market. The best-performing sectors are sharing bags, dark chocolate [see panel below], premium, gifting and Christmas.

Yet, despite its size, suppliers face an uphill struggle to grow the category.

Market penetration is saturated, with 97% of children and 85% of adults eating chocolate, while consumers are cutting down on volume consumed. Fortunately, rising affluence is helping consumers trade up into premium-priced products - and it could be here where the biggest opportunities for retailers lie, particularly around key occasions such as Christmas and Easter.

Both festive events are heavily influenced by confectionery, which is worth £640m during the Christmas season alone [IRI], with household penetration during the period at 80%.

Mars Celebrations, for example, delivers 60% of its total brand sales during the Christmas season. "Grocery continues to offer real opportunities for retailers in the lucrative Christmas period," says Andrea Taylor, trade relations manager for Mars.

"This year, Christmas Day falls on a Tuesday, meaning consumers will have the benefit of a long weekend for that last-minute shopping, so right up to the last moment it will be key for retailers to maximise sales."

All the leading brands put a lot of effort into developing new products or brand extensions specifically for Christmas.

Mars is introducing Galaxy Mistletoe Kisses, targeted at female consumers seeking a little indulgence, and is backing it with a £1m TV advertising campaign. Nestlé will be adding to its After Eight range - following the launch of Milk and After Eight Straws last year - with an 85% cocoa solid After Eight. Perhaps the biggest news from Nestlé is the revamping of its iconic Black Magic brand with a new pack and new chocolates.

"It's the brand that people recognise as being dark chocolate," says Nestlé's Graeme Walker, "but it's ready for a radical change. We are targeting it towards men and women aged 35+ who are people open to new experiences, enjoy the good things in life and give gifts that affirm their status." The new Black Magic will be backed by £1m of support - amazingly the first time it has been supported in 15 years.

Green & Black's has a raft of NPD for Autumn/Christmas 2007, with a new after-dinner collection - After Dinner Mint Chocolate Leaves and After Dinner Chocolate Squares. There will also be the Miniature Bar Collection, which is aimed at a more informal sharing occasion.

Meanwhile, this Christmas sees the launch of new products from Bendicks. Mint Collection gets new packaging and a new mint chocolate - Intense English Mint, which uses distinctive mint oil from the Black Mitcham mint plant grown by a local farmer. Also new for 2007 is Bendicks Bittergingers.

Sharing is another key trend within confectionery, led by sharing bags, a sector that, until recently, was dominated by Mars with its 'pouch' format, which have grown total sharing bags sales by 13% since their launch in 2005. The Maltesers brand, for example, now accounts for 23% of what Mars calls the 'bitesize' market.

However, new competition from Nestlé with its sharing bags could inject some healthy competition into the sector.n

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