Traditional confectionary industry prospect and logistic challenges

Abstract

The traditional confectionery industry has been around for centuries and remains a popular industry with a promising future. According to Statista market insight, revenue in the Confectionery market amounts to US$2.63bn in 2023. The market is expected to grow annually by 11.84% (CAGR 2023-2028). This study aimed to explore the traditional confectionary industry in Sri Lanka to find out the impact of logistic and transport challenges of traditional confectionary industry. Such as supply chain disrupt decline production volume, shortages of raw materials, and difficulties in transporting goods due to high fuel cost, storage and warehousing challenges due to lack of resources with import barriers. Market ethnography was performed to investigate the typology of confectionary makers, status of marketing mix elements, consumer attitudes and behaviors on traditional confectionaries and logistic challenges. Quantitative literature analysis explored the prospects and logistic challenges facing the traditional confectionery industry. The findings indicate that the traditional confectionary industry in Sri Lanka has promising prospects due to increasing demand from both domestic and overseas ethnic markets. The industry faces several logistic challenges, including maintain safety and quality standards, packaging solutions, trained confectionary makers, access to ingredients, high cost of production, inadequate transportation infrastructure, lack of cold storage facilities, and poor retailer support. Positive consumer trend, health concerns, area wise consumer base and pricing strategies were identified as industry prospects. Product and process innovations and improvement was highlighted as an essential sector for the industry sustainability.