New York, United States, March 04, 2024 (GLOBE NEWSWIRE) -- Sugary and carbohydrate-rich foods are referred to as confections. It comprises chocolates, biscuits, bars, gummy candies, mints, and other confections. In the confectionery industry, product innovation is one of the most influential aspects. Consumer health awareness and consciousness, as well as diverse consumer eating habits and preferences, tend to drive innovation. To address shifting consumer preferences, manufacturers expand their product offerings by incorporating organic herbal fillings, functional ingredients, tropical fruit, and nut-based and exotic flavors into product formulations. Moreover, the rise of middle-class consumers has fueled the expansion of the luxury product industry.
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Product Innovation to Drive the Global Confectionery Market
According to Straits Research, “The global confectionery market size was valued at USD 298.4 billion in 2022. It is estimated to reach USD 421.05 billion by 2031, growing at a CAGR of 3.9% during the forecast period (2023 – 2031).” Innovation, processing, and packaging are the primary market growth drivers in the confectionery sector. Consumer health awareness and consciousness, as well as diverse consumer eating habits and preferences, tend to drive innovation. Manufacturers expand their product offerings to fulfill evolving consumer preferences by incorporating functional ingredients, tropical fruit, organic herbal fillings, and nut-based and exotic flavors into product formulations. Innovative packaging techniques, such as appealing jars, family-sized packs, resalable packaging, and bags & tubs, also increase product sales. In 2018, the Tic Tac company introduced Tic Tac Gum, a revolutionary gum mint. It was offered in three delightful flavors: fresh mint, spearmint, and watermelon. In addition, the brand received the Most Innovative New Product Award in the mint and gum category at the National Confectioners Association (NCA) Sweets & Snacks Expo in Chicago, Illinois. The introduction of slimming properties, the blending of liquid and solid flavors, olfactory sensations, and energy boosts in confectionery goods support the growth and expansion of the worldwide confectionery market.
Rise in Demand for Organic and Premium Candies to Provide Opportunities for the Global Confectionery Market
The organic and premium candy megatrend has attracted a broader spectrum of consumers. Most consumers are ready to pay a premium for organic chocolates, believing they offer additional benefits. However, organic chocolates have gained widespread consumer appreciation due to their high antioxidant content. The dark and organic sweets market is expanding rapidly due to the health benefits of dark chocolate and its natural ingredients. For instance, YumEarth's USDA-certified Organic Candy Corn was one of the most popular candies due to consumers' strong demand. Millennial consumers drive the demand for organic sweets because they are worried about the health impacts of pesticides, hormones, and antibiotics and are knowledgeable about food.
Key Highlights
- Based on product type, the market is categorized into hard-boiled sweets, mints, gums & jellies, chocolate, caramels & toffees, medicated confectionery, fine bakery wares, and others. The chocolate segment was the highest contributor to the market and is estimated to grow at a CAGR of 4.2% during the forecast period.
- By age group, the market is classified into children, adults, and geriatric. The adult segment dominated the market and is estimated to exhibit a CAGR of 3.7% during the forecast period.
- By price point, the market is distributed into the economy, mid-range, and luxury. The economy dominated the market and is estimated to grow at a CAGR of 3.7% during the forecast period.
- By distribution channel, the market is divided into supermarket/hypermarkets, convenience stores, pharmaceutical & drug stores, food services, duty-free outlets, e-commerce, and others. The supermarket/hypermarket segment dominated the market and is estimated to grow at a CAGR of 3.5% during the forecast period.
Regional Insights
Region-wise, the global confectionery market is studied across North America, Europe, Asia-Pacific, and LAMEA. Europe was the highest revenue contributor and is estimated to grow at a CAGR of 3.6%. Europe holds a significant share of the confectionery business, with chocolate dominating the segment. Countries like the United Kingdom, Germany, France, Spain, and Italy are the most significant contributors to this region's economy. The high cost of raw materials, the adoption of government rules, and a rise in competitive pressure are the most significant obstacles facing the chocolate industry in Germany. Spanish confectionery makers invest in research and innovation to introduce enticing products that provide customers with distinctive experiences. European countries are developing new sugar alternatives and sugar-free products in response to customer concerns about the adverse health effects of excessive sugar consumption. Added benefits, such as vitamin fortification, natural extracts, increased dental health, and refreshing breath effects, attract consumers in the region. Additionally, innovation in terms of textures, flavors, forms, and pack sizes contributes to the expansion of the market. In the European Union, private label items continue to be significant, and families purchase larger pack quantities, which harms the sales of mid-priced brands.
Asia-Pacific is the second largest region. It is anticipated to reach an expected value of USD 85 billion by 2031 at a significant CAGR of 4.7%. Expansions of product portfolios and the introduction of new brands by established companies are significant factors driving the regional confectionery market. To increase their brand awareness and impact on the market, the region's significant businesses invest substantial sums in advertising campaigns and marketing—businesses, such as Ferrero China Ltd., market their products as suitable wedding and personal gift-giving occasions. In addition, producers release limited edition seasonal chocolate confections to capitalize on consumers' preference for winter-themed merchandise. In the region, international brands dominate native brands. Increased investment by market participants, a rise in disposable income per capita, and a rise in the overall consumption of confectionary items are the primary drivers in this region.
North America is the third largest region. The market for candies in North America consists of the United States, Canada, and Mexico. The United States is North America's largest producer and consumer of confections. Canada and Mexico offer enormous confectionery market possibilities in the region. In North America, the leading confectionery categories are chocolate and sugar. Due to demographic factors such as an aging population and limited population growth, there has been a plateau in the consumption volume of sugar confectionery. Increased customer health consciousness and the implementation of new legislation addressing the obesity problem in various countries, such as Mexico, impede the expansion of the sugar confectionery business in the region. In January 2014, the Mexican government put an 8% tax on foods with more than 257 calories per 100 grams. The introduction of new products and technological advances drove North America's chocolate market growth. Boxed assortments, tablets, and bagged selflines/soft lines are the chocolate confections with the highest growth rate in this region. Increased demand for organic, premium chocolate, and sugar-free goods is anticipated to contribute to the rise of the confectionery industry.
Competitive Landscape
The prominent companies in the global confectionery market include Mondelez International, Inc., Mars, Incorporated, Ferrero Group, Meiji Co., Ltd., The Hershey Company, Nestlé S.A., Chocoladefabriken Lindt & Sprüngli AG, Ezaki Glico Co., Ltd., Haribo GmbH & Co. K.G., and Pladis.
Market News
- November 2022 - Mars Pet Nutrition, a division of Mars Petcare, continues to redesign its product packaging in Europe with leading brands SHEBA®, WHISKAS®, PERFECT FIT™, and CATSAN™, saving 480 tons of plastic per year. To further minimize single-use plastic packaging and drive systems change for circular models, the company joins Carrefour's concept test-and-learn bulk initiative in the Montesson hypermarket, France, offering its PERFECT FIT™ dry cat food, CATISFACTIONS™, and WHISKAS® care & treats in bulk.
- November 2022 - Mars, Incorporated, together with a group of the world's largest and most influential agribusiness companies and organizations, has launched an action plan to scale regenerative farming globally to tackle the impacts of climate change and biodiversity loss.
Global Confectionery Market: Segmentation
By Product Type
- Hard-boiled sweets
- Mints
- Gums & jellies
- Chocolate
- Caramels & toffees
- Medicated confectionery
- Fine bakery wares
- Others
By Age Group
- Children
- Adult
- Geriatric
By Price Point
- Economy
- Mid-range
- Luxury
By Distribution Channel
- Supermarket/hypermarket
- Convenience stores
- Pharmaceutical & drug stores
- Food services
- Duty-free outlets
- E-commerce
- Others
By Region
- North America
- Europe
- Asia-Pacific
- LAMEA
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