Despite the global outlook, several economic trends are disrupting the UK confectionery market, creating tough conditions for some traders. A level of uncertainty around the implications of Brexit for tariffs and quotes on sugar and cocoa, and for major retail supply chains, is affecting order volumes, and fluctuations in the prices of key commodities have out the squeeze on suppliers. Consumer habits are also shifting, increasingly perceiving confectionery as something to be shared or given as a gift. However, these are creating profitable trends towards “premiumisation” as shoppers seek new flavours, different experiences, and quality products. Imports of American confectionery, particularly sour candy, are also growing rapidly. Many wholesalers are also increasingly focusing on global markets, as major Asian markets such as Japan and South Korea drive demand for premium products and European and US branded confectionery.

Establishing or expanding international trading operations can be tough for some firms’ finances. The delays between payment of suppliers, transportation of the purchased goods receivable, and eventual sale of the product to retailers or consumers can create lengthy trade gaps in firms accounts receivable, leading to cashflow issues and uncertainty about further investments or ventures. Trade financiers can support these firms by advancing lines of credit to repay suppliers with lengthy repayment terms which allow firms to profit from the sale of the imported goods before repaying their lenders. These loans are also commonly made without the stringent capital requirements required by conventional lenders, easing pressure on firms’ cashflow and maximising their profits from the ventures they invest in.