Confectioneries Market

Confectioneries Market Outlook (2023-2033)

The valuation of the global confectioneries market is US$ 301 billion in 2023. Sales of confectionery items are estimated to reach a value of US$ 474 billion by 2033-end, increasing at a CAGR of 4.6% over the next ten years.

Any kind of sweet treat is considered a popular food product across the globe. Confectioneries are sweets that come with a lot of carbohydrates and sugar. These come in the form of chocolates, cookies, gummies, and mints.

People around the world consume various confectioneries on special occasions, including anniversaries, birthdays, and even festivals such as Christmas, Halloween, and others. Halloween is a one-of-a-kind occasion that is known for its tradition, in which children usually dress up in different costumes and go from one door to another to collect various types of candies.

At present, a lot of confectionery options are available and likely to grow based on variety and flavor. Consumer preferences, tastes, and habits are constantly evolving. These constant changes are likely to lead to innovation in the area of confectioneries, which is further estimated to contribute to market growth. Manufacturers, in recent years, are increasing their range of products by including nut-based & exotic flavors, tropical fruits, organic herbal fillings, and functional ingredients.

The rising trend to gift confectioneries that include bakery items, chocolates, cookies, and others is anticipated to fuel product demand as well. Brands in recent years have been concentrating on unique engaging techniques to gain consumers’ attention. These initiatives will result in increased purchases of confectionery products owing to impulse buying.

On the flip side, the volatile nature of raw materials such as cocoa and sugar might have adverse impacts on the sales of confectioneries. In addition, overconsumption of these food products can be harmful to health in the long run. However, the use of some alternative ingredients that are organic or natural is likely to generate novel growth opportunities over the coming years. Furthermore, the production of innovative sweet items along with strategic initiatives by companies will bolster the growth opportunities in the global market.

Report Attributes	Details
Confectioneries Market Size (2023)	US$ 301 Billion
Estimated Market Value (2033)	US$ 474 Billion
Projected Growth Rate of Market (2023-2033)	4.6% CAGR
Canada Market Growth Rate (2023-2033)	4.1% CAGR
Key Companies Profiled	Lindt & Sprungli Lotte Confectionery Mars Wrigley Mondelez International Nestle SA Perfetti Van MelleSpA The Hershey Company Pladis

Which Prominent Factors are Driving Confectioneries Market Expansion?

“High Demand for On-the-Go Snacks”

Rising modernization along with a hectic combination of personal & professional obligations are some key factors that are likely to trigger demand for convenience snacks in daily diet. The busy lives of consumers do not allow them to spend a significant time cooking as well as dine-out at the time of their working hours. These factors can lead people to look for quick-to-eat and easily-prepared food products.

The count of people in the workplace is growing at a noticeable speed. This makes it, even more, harder for them to maintain a healthy work-life balance. So, marketers and manufacturers are capitalizing to introduce and promote a wide range of chocolate snacks that include chocolate bars, on-the-go snacks, and others. These initiatives ensure a healthy diet for individuals around the world.

Companies in the confectioneries market also concentrate to offer convenient and small packs that ensure easy transportation of bars and candies in bags. Furthermore, dark chocolates are also experiencing rising popularity with numerous health benefits that are associated with them. These chocolates are a rich source of antioxidants and reduce blood pressure and improve insulin sensitivity.

Growing association of chocolates with the young generation and some other working populations around the world is likely to bolster growth in the global market.

“Rapidly Rising Demand for Sugar-free Chocolates”

Improvement in the lifestyle of people around the world is expected to bring noticeable changes in the health and diet of human beings. These changes can result in the proliferation of lifestyle diseases including blood pressure, diabetes, etc. Being overweight, obesity and other related diseases are some serious concerns that are likely to bring challenges to the sustainability of our healthcare system.

People are making a shift in their preferences towards sugar-free and low-calorie products to eliminate the above-mentioned diseases. Thus, the reduced intake of sugar is further likely to propel the demand for sugar-free chocolates that are predicted to impact sales for confectioneries.

What’s Restraining the Adoption of Confectionery Products?

“Fluctuation in Raw Material Prices Can Hamper Market Performance”

Sugar and cocoa are the essential raw materials that are used to produce confectioneries around the world. The price of cocoa and sugar has experienced fluctuations due to variations in their demand and supply. Further, the yield of cocoa and sugar is impacted due to unfavorable weather conditions, stock ratio, labor availability, crop diseases, and other economic factors.

These factors are responsible for annual price fluctuations from high to low and vice versa. Further, these price fluctuations are likely to impact the production of chocolates and sugar products in the market and thus dampen the overall demand for confectionery products.

How Lucrative in the Confectioneries Industry for New Companies?

“Use of Organic Ingredients for Product Development Can Generate Growth Opportunities”

Confectionery products are used at an increased rate irrespective of geographical location. So, the manufacturers of confectionery products are incorporating various new innovative strategies for product development that include the use of natural and organic ingredients for product development.

For instance :

• Mondelez, a multinational confectionery & food company in the US, and Cadbury, a multinational confectionery company from the UK in June 2019 announced about the launch of a new milky bar. This bar contains 30% less sugar compared to other normal milky bars.

Which Region Accounts for the Largest Confectioneries Industry Share?

“Europe Leads Due to High Popularity and Demand for Chocolate Confectioneries”

Among other regional areas, the market in Europe is likely to make the largest contribution to global industry. The regional market held more than 35% market share in 2022-end. These growth opportunities in the regional market are attributed to the rising popularity along with the demand for chocolate confectionery products.

People in recent years are giving preference to value-added natural ingredients and organic products. Furthermore, constant changes in consumer lifestyles, as well as eating habits, are contributing to regional market growth.

Asia Pacific is the fastest-growing market and is likely to progress at a CAGR of 5.1% through 2033. Japan, India, and China are the key contributors to regional growth with the presence of a huge consumer base that consumes confectionery products. In addition, the rising population and disposable income of regional people are likely to accelerate growth opportunities in the market.

Country-wise Insights

Which is the Leading European Country for Confectioneries?

“Organic Chocolates a Hit in Germany”

The market in Germany is anticipated to progress at a CAGR of 3.9% through 2033.

The growth in the market is attributed to the rising awareness related to the side effects of raw materials that are produced with the use of chemicals that have led to increased demand for organic chocolates. In addition, the highest per capita consumption of confectionery products is also contributing to market growth there.

Why is the U.S. the Largest Market for Providers of Confectioneries?

“Expansion of Distribution Channels in U.S. Ensuring Easy Availability of Confectionery Products”

The market in the U.S. was valued at more than US$ 48.5 billion in the year 2022. The U.S. confectioneries industry is predicted to grow with the expansion of distribution channels there. In addition, the presence of key manufacturers in the industry is also likely to contribute to market growth.

The Canadian market is likely to progress at a CAGR of 4.1% through 2033 owing to the growing high-income class that can invest in these products.

Which Prominent Factor Will Drive Market Growth in Japan?

“Easy Availability of Functional Confectioneries in Japan”

The market in Japan across the Asia Pacific region is likely to grow due to rising urbanization along with the easy availability of functional confectionery food & beverages. Further, the growing demand for low-calorie products including sugar-free confectioneries and low carb is also propelling the market growth.

The market in Japan is projected to expand at a CAGR of 3.3% through 2033.

Category-wise Insights

Which is the Most Commonly Consumed Type of Confectionery?

“Increased Per Capita Consumption of Chocolates across the World”

Based on product, the global market is classified into chocolates, sugar confectioneries, cookies, and ice cream. Among these, the chocolate segment is estimated to hold the largest market share of around 45.2% in the year 2022. This dominance is due to rising demand as well as consumption of chocolate products from different age groups.

Per capita consumption of chocolate is comparatively higher than other products around the world. In addition, the growing demand for premium and organic chocolate products is likely to contribute to market growth.

Sugar confectionery products are predicted to grow at the fastest pace due to constant changes in lifestyles and eating habits of people. Furthermore, the growing population of middle-class people along with urbanization around the world is anticipated to bolster market growth. The increasing trend of e-commerce platforms is also estimated to accelerate segment growth.

Why are Offline Distribution Channels Still Ruling This Space?

“Preference for Offline Distribution Channels for Confectionery Purchasing Owing to Easy Access”

Based on distribution channel, the industry is bifurcated into offline and online platforms. Between these two, the offline channel held more than 75% of the market share in the year 2022. People in recent years are giving preference to offline channels to purchase groceries, consumer goods, and confectionery products that include chocolate, and some other products.

Easy access and searching for different confectionery products through stores is predicted to contribute to the demand for chocolate confectionery. In addition, the manufacturers are opening various new outlets at malls owing to the growing demand for cookies, chocolate, and ice cream which is further projected to propel growth opportunities in the market.

The online platforms are likely to register the fastest growth with a moderate CAGR of 5.3% through 2033. The rapid growth of the e-commerce sector and the availability of different products on respective websites is likely to drive the growth of this platform.

Competitive Landscape

Several suppliers and manufacturers are concentrating on logistic development. They are also focusing on strengthening their distribution channels to expand their business.

For instance :

• Mondelez International Inc. in the year 2020 patented a process that can enable the company to reduce the level of sugar in its chocolates with the use of soluble corn fiber.

Key players in the confectioneries market are Lindt & Sprungli, Lotte Confectionery, Mars Wrigley, Mondelez International, Nestle SA, Perfetti Van MelleSpA, The Hershey Company, and Pladis.

Segmentation of Confectioneries Industry Research

• By Type :

  • Chocolates
  • Sugar Confectioneries
  • Cookies
  • Ice Cream

• By Distribution Channel :

  • Offline
  • Online

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa