Confectionery Market Size, Share & Industry Analysis, By Type (Chocolate, Sugar, and Gums), Distribution Channel (Hypermarket/Supermarket, Convenience Stores, Departmental Stores, and Online Retails), and Regional Forecast, 2024 - 2032

The global confectionery market size was USD 206.97 billion in 2023 and is projected to grow from USD 213.74 billion in 2024 to USD 278.36 billion by 2032 at a CAGR of 3.36% over the 2024-2032 period. Europe dominated the confectionery market with a market share of 38.38% in 2023. Moreover, the confectionery market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 36.09 billion by 2032, driven by consumers willingness to spend on artisanal confectionery products and emerging production facilities in the region.

The global impact of COVID-19 has been unprecedented and staggering, with the products witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant decline of 7.1% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The premium product range has been showing significant growth in recent years, driving the development of the global market. The increase in demand for premium products has been steady in developed regions. However, the developing region has been showing a rapid growth in demand for premium product range owing to the increasing Western influence, rising disposable income, rapid growth in international trade, and increased geographical expansion by major players with new product launches and developments. Thus, growth in the global market can be attributed to the increasing consumption of premium confectionary products. For instance, in July 2021, Harbinger Foods announced the launch of Kokoma! Artisanal Chocolate is a premium chocolate range with five signature product types: milk chocolate, dark chocolate, and white chocolate in different flavors and ingredients.  The new launch is owing to the increasing demand for premium products in the country.

The global COVID-19 pandemic has negatively impacted the global economy and food industry as governments imposed strict lockdowns and restricted public mobility. The closure of sugar and chocolate products manufacturing facilities significantly affected commodity production in the initial months. For instance, in the U.S., The Hershey Company temporarily closed all its production facilities from 16-29th March 2020 in response to the COVID-19 outbreak. Disruptions in the supply chain, workforce shortages, trade restrictions, and fluctuations in transportation and logistics were some of the problems observed during the lockdown. According to the National Confectioners’ Association (NCA) CEO, the consumers ate more meals at home during the quarantine period, lowered their store visits, and increased their comfort levels with online purchasing, which affected the retail confectionery sector.

Confectionery Market Trends

Growing Consumers’ Inclination Towards Organic Chocolates & Candies to Fuel Growth

The demand for healthier snacking and the taste and sensory benefits are increasing among the consumers, which has led to the popularity of organic snacks and sugar and chocolate products. Consumers have a mounting interest in organic products, which opens up many opportunities in the sector. The organic chocolate segment is witnessing decent growth globally and is gaining massive popularity among consumers. The reinforced efforts from manufacturers to meet the growing demand for organic chocolate in the market are assuring the global market's growth over the coming future.

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Confectionery Market Growth Factors

Rising Emergence of On-the-go Snacks to Push Confectionery Businesss

Increasing modernization and a hectic combination of professional & personal obligations are some of the major factors triggering convenience snacks' demand as part of the daily diet. Consumers' busy lives disallow them to spend time cooking and dine-out during their working hours, which leads consumers to look for easy and quick-to-eat food products. The number of consumers in the workplace is increasing nowadays, and it is becoming even harder to maintain a healthy work-life balance for them. Thus, manufacturers and marketers are intensively capitalizing on introducing and promoting a range of chocolate snacks such as on-the-go snacks, chocolate bars, and others to offer a healthy diet to consumers. They also focus on offerings of convenient and small packs that allow consumers to carry candies and bars in their bags. Dark chocolate is witnessing a rise in its popularity due to the health benefits associated with it. For example, it is a rich source of antioxidants that improves insulin sensitivity and reduces blood pressure. Hence, the rising association of chocolates with youngsters and other working populations across the world is expected to propel the confectionery market growth during the forecast period.

Increasing Demand for Sugar-free Chocolates to Proliferate Market Sales

Improving consumers' lifestyles across the globe is also undergoing a sea change, especially their daily diet and health. Due to these changes, several lifestyle diseases have spurred, such as diabetes, blood pressure, etc. Obesity, overweight, and their related diseases are becoming a serious concern among consumers posing major challenges for the sustainability of healthcare systems across the world. Consumers are increasingly shifting their preferences towards low-calorie and sugar-free food products to eliminate such diseases. The growing health concerns have led to reduced sugar intake among consumers. Thus, the demand for sugar-free chocolates was growing and anticipated to grow further in the upcoming years.

RESTRAINING FACTORS

Fluctuations in the Price of Raw Materials to Hamper Market Performance

Cocoa and sugar are essential raw materials that are majorly utilized to produce confectioneries across the globe. The price of sugar and cocoa has witnessed fluctuations in the past few years as their production and demand vary swiftly in the global marketplace. The cocoa and sugar yields get affected due to unfavorable weather conditions, crop diseases, labor availability, stock ratios, and other economic factors that hamper the smooth flow of their demand and supply in the market. As a result, the raw materials' average annual price fluctuates from low to high and results in the surplus or understock to produce sugar and chocolate products in the market. Hence, price fluctuations of raw materials are expected to dampen the overall demand in the upcoming years.

Confectionery Market Segmentation Analysis

By Type Analysis

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Sugar & Gums to Hold Major Share Due to its Growing Popularity among the Candy Manufacturers

The global market is growing at a decent pace owing to the emerging acceptance and indulgence of chocolates and chocolate snacks among consumers in developed regions such as North America & Europe. However, the chocolate confectionery segment is the leading segment globally and shows immense growth in developing economies. Rising disposable income and steady growth of the developing economies are some of the major factors eliciting demand for varied chocolates in the global marketplace. Higher acceptance of westernized food and the consumers' daily routine has created vast opportunities for chocolate items manufacturers worldwide. 

On the other hand, sugar and gum confectioneries are also performing well in the overall market. Rising demand for innovative candies, snack bars, and other inventive stuff among children, youngsters, and the working population has encouraged manufacturers to broaden their production and distribution capacity in overseas markets. The introduction of new products with advancements in flavors and textures has resulted in the increased retail penetration of sugar confectioneries in the market.

By Distribution Channel Analysis

Mass Merchandisers to be the Leading Sales Channel Owing to its Convenient Offerings

Supermarkets/hypermarkets are gaining a tremendous response from consumers across the world. The increasing dependence of consumers over these facilities, freedom of selection, more comprehensive product ranges, and bundling schemes offered by the mass merchandisers have led to the increased foot-counts on the floor. Consumers prefer mass purchasing of groceries for a particular period of time due to their busy and hectic schedules. Thus, supermarkets/hypermarkets offer a convenient buying experience to the consumers under a single roof. The separate sections in the supermarkets/hypermarkets provide an easy way to buy chocolates and other confectioneries. The rapid emergence of such sales counters worldwide is expected to contribute to the revenue generation of sugar and chocolate products in the global marketplace. However, the manufacturers are also focussing on small and consumer packs for the middle-class population globally, promoting the sales of confectioneries from convenience, online, and departmental stores.

REGIONAL INSIGHTS

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Europe accounted for the major share in the global market and accounted for USD 73.41 billion in 2020. The consumers are intensively looking for quality and premium chocolates over the sugar confectionery products, owing to their increased taste preferences and permissive eating habits. The combination of work-life, health concerns and individual desires among the consumers is one of the major factors that are becoming influential motivators to consume confectioneries in their daily routine. The consumers are demanding some specific and customized chocolates in the market, such as ‘melt-in-the-mouth ‘feel chocolate, ‘quality-for-chocolate’, and others which have consequently led to greater sales of confectioneries in the region. It is the most popular snack-type in certain European countries, including the U.K., Germany, and Austria. These countries are expected to consume 5 times the global average.

Asia Pacific held the second largest confectionery market share and holds immense potential for chocolate product consumption worldwide. Rapid urbanization, increasing disposable income, young and dynamic population, and easy availability of confectioneries in consumer packs are the major reasons for the regional market's growth. The manufacturers are utilizing such opportunities by intensively capitalizing on facility expansions and mergers & acquisitions with regional players. Increasing popularity, acceptance, and technological advancements for such products among consumers are anticipated to be the significant factors fostering the growth of the overall market during the forecast period.

North America is witnessing a significant rise in sugar and chocolate product sales as consumers are increasingly eyeing it as comfort food. The between-meal snacking trend in the region has led to increased demand for snacks and cereal bars. The U.S. is one of the major markets where the consumers are ready to spend on artisanal confectionery products that enhance their appearance and increase their palatability. Increased efforts from manufacturers, implementation of new technologies, and emerging production facilities in the region have positively impacted the overall growth of the demand.

On the other hand, there is a slow growth observed throughout the forecast period in South America, which is owing to factors such as low economic condition, consumer health concern, and certain legislative challenges. However, the region is expected to show a high preference for chocolate over sugar as it is perceived to be premium.

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List of Key Companies in Confectionery Market

Prominent Players Focusing on Strengthening Distribution Network to Fortify Market Presence

The confectionery items market structure is highly consolidated due to the dominance of some key giants and their presence in the market. The manufacturers are intensively capitalizing on reinforcing their distribution networks, implementing cost reduction techniques, and placement of varied products in the global marketplace. Barry Callebaut, Ferrero SpA, and Nestle S.A. are some of the major companies that hold the major share in this market.

LIST OF KEY COMPANIES PROFILED

• Barry Callebaut (Zürich, Switzerland)


• Ferrero SpA (Alba, Italy)


• Nestle S.A. (Vevey, Switzerland)


• Mondelez International, Inc. (Illinois, U.S.)


• Meiji Holdings Co., Ltd. (Tokyo, Japan)


• The Hershey Company (Pennsylvania, U.S.)


• Chocoladefabriken Lindt & Sprungli AG (Zürich, Switzerland)


• Ezaki Glico Co., Ltd. (Osaka, Japan)


• HARIBO GmbH & Co. KG (Bonn, Germany)


• Pladis Global (London, U.K.)

KEY INDUSTRY DEVELOPMENTS

• May 2023: Ferrero North America, one of the leading chocolate manufacturers in the U.S., announced new products and seasonal product lines, including products, such as Kinder Chocolate, at the annual expo of sweets & snacks in Chicago.


• March 2023: The Hershey Company, a leading chocolate manufacturer, announced the launch of its all-new plant-based product to Reese's Brands. The launch will cater to the increasing consumer base of vegan products in the global market.


• November 2022: Barry Callebaut announced the launch of its all-new factory in India, which is intended to be the manufacturer's largest chocolate production facility in the Asia Pacific region.


• January 2021: Mondelez International, Inc. announced the launch of Cadbury Dairy Milk Silk Mousse in India under its premium chocolate segment.


• January 2020: The Hershey Company, under its Indian subsidiary, launched Hershey chocolate bars in India to expand its geographical presence and strengthen its position in the Indian confectionery items market.

REPORT COVERAGE

The global market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all the segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key confectionery market trends.

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Report Scope & Segmentation