This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
Confectionery Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
GET A FREE SAMPLE
Report Overview
The global confectionery products market was valued at USD 86.1 billion in 2022 and is projected to expand at a CAGR of 3.2% from 2023 to 2030. The growing consumption of sugar-based and chocolate-based confectionery products has been a major factor driving the market growth. The increasing demand for premium confectionery products, such as gourmet chocolates, is also expected to contribute to the market growth. Furthermore, the growing trend of gifting confectioneries, particularly during festivities and occasions, is also aiding the market growth.
Innovation in packaging technologies is helping manufacturers to differentiate their products from other products in the market. For instance, in December 2021, Nestlé Japan announced the launch of a new packaging for Kit Kat “Chocolate Bar Pack”. The new pack consists of a stack of individually wrapped Kit Kat bars, making it easier for consumers to enjoy their favorite Kit Kat bar. Additionally, increasing the demand for convenience foods and snacks is expected to drive the market growth in the upcoming years.
The growing demand for convenience foods, such as ready-to-eat snacks and frozen desserts, is aiding the market growth. Furthermore, rising consumer preference for functional confectionery products and health-based confectionery products is also driving the market growth. For instance, in March 2022, Mondelez International, Inc. launched new Cadbury Dairy Milk with Omega-3, designed to meet the changing consumer preferences. The product is fortified with Omega-3 fatty acids to provide a dietary supplement that can help improve heart health, brain health, and skin health.
Moreover, the increasing demand for organic and natural confectionery products is likely to drive the market growth in the upcoming years. For instance, in August 2021, Hershey announced the launch of new organic chocolates under its brand “Hershey’s Organic”. The product is made with simple organic ingredients and is free from artificial flavors and preservatives. Furthermore, the availability of a wide variety of these products online is accelerating the demand. The e-commerce platform further provides various offers on these products, which is boosting online sales.
Product Insights
The chocolate segment held the largest market share in 2020 and is expected to remain dominant over the forecast period. Increasing demand for dark chocolates, owing to its health benefits such as enhancing cognitive functions, reducing stress and improving blood flow, is driving the segment growth. According to an article published by Harvard Medical School, in March 2020, dark chocolate contains flavonols which are associated with a lower risk of coronary artery disease.
The sugar confectionery segment is expected to witness the fastest growth over the forecast period, owing to increasing demand for gum and jelly products. The rising trend of gifting candy and other confectionery items during special occasions, such as weddings and festivals, is driving the segment growth. According to an article published by the University of California, in May 2020, sugar confectionery is one of the most popular items gifted during Diwali, a Hindu festival celebrated in India.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest share of over 40.9% in 2022. The growing demand for confectionery products among consumers such as chocolates, gums, and candies has been driving the growth of this segment. Supermarkets and hypermarkets provide a wide variety of products and are the primary sources for consumers to purchase confectionery products. The presence of organized retail stores in developed countries such as the US, Canada, and the UK has further increased the demand for confectionery products in this segment.
The online segment is expected to register the highest CAGR of 8.3% during the forecast period. The advent of e-commerce has provided a platform to manufacturers to reach out to a wide consumer base without any geographical limitation. In addition, the increasing use of smartphones, tablets, and other electronic devices has further boosted the popularity of online shopping, which is expected to drive the growth of the segment during the forecast period. Furthermore, the presence of leading online stores such as Amazon, eBay, and Walmart has resulted in an increased demand for confectionery products among consumers.
Type Insights
The chocolate segment dominated the global confectionery products market, accounting for a revenue share of 67.9% in 2022. The growing demand for chocolate products, due to their intense flavor, is the major factor driving the segment. Additionally, the increasing popularity of dark chocolate and its health benefits is also propelling the segment growth. For instance, in March 2022, Ferrero International S.A. launched its dark chocolate range under the Tic Tac brand in the U.K. Moreover, the rising trend of gifting chocolates during occasions is further boosting the chocolate segment growth.
The sugar confectionery segment is anticipated to register the highest CAGR of 5.7% during the forecast period. The increasing consumption of sugar-based confectionery products among children and teenagers is driving the segment growth. Moreover, the rising demand for hard-boiled candies, jellies, and gums is further contributing to the segment growth. For instance, in April 2022, Mondelez International Inc. launched a new range of hard-boiled candies in India under the brand name of ‘Toffee’.
Regional Insights
Europe held the largest share of the market in 2021 and is expected to remain dominant during the forecast period. This is due to the presence of a large number of confectionery manufacturers, such as Mondelēz International, Ferrero, and Mars, Inc. Moreover, the presence of a strong distribution network in the region is expected to drive the demand for confectionery products.
Asia Pacific is expected to witness the fastest growth during the forecast period. The growth of the region is attributed to the presence of a large number of confectionery manufacturers, such as Meiji Seika Kaisha, Lotte, and Yildiz Holding. Furthermore, the rising disposable income of middle-class families, particularly in emerging economies, is expected to drive the demand for confectionery products in the region. In addition, the expansion of retail outlets, such as convenience stores and supermarkets, is expected to boost the market growth in the region.
Financial Projections
In this part of the confectionery products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a confectionery products business comes from the sale of products, wholesale, retail, and e-commerce. Here you will find a list with a description of each of them and other possible sources of profit such as catering, gift baskets, and special orders.
Projecting Expenses
In this section, all the regular expenses related to keeping the confectionery products business running will be described. The list of operating expenses includes ingredients, packaging, wages, rent, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the confectionery products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, Mondelez International, Inc. launched a new range of chocolate biscuits.
– In July 2022, Mars, Inc. launched a new range of chocolate-covered almonds.
– In September 2022, Hershey’s launched a new range of dark chocolate bars.
Some of the prominent players in the confectionery products market include:
– Mondelez International, Inc.
– Mars, Inc.
– Nestlé SA
– Ferrero Group
– Hershey’s
– Lindt & Sprüngli AG
– The Hershey Company
– Dr. August Oetker KG
– Ferrero Rocher
– Cadbury plc.
Global Confectionery Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global confectionery products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Hard Candies
– Chocolates
– Caramels
– Gum
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the key trends in the global confectionery products market?
[A]: The global confectionery products market is witnessing an increase in demand for organic, gluten-free, and vegan products. Consumers are increasingly looking for health benefits in their food products, and companies are focusing on providing healthier options. Moreover, the emergence of innovative and indulgent products such as low-sugar and sugar-free confectionery products is expected to drive the growth of the market.
[Q]: Who are the major players in the global confectionery products market?
[A]: The major players in the global confectionery products market are Mondelēz International, Mars Incorporated, Nestlé S.A., Ferrero Group, and The Hershey Company.
[Q]: What is the market outlook for confectionery products?
[A]: The confectionery products market is expected to witness a positive growth rate in the coming years. The growing demand for healthier options, along with the increasing popularity of innovative products, is expected to drive the market growth.
[Q]: Which regions are expected to be the most lucrative for confectionery products?
[A]: The Asia Pacific region is expected to be the most lucrative region for the confectionery products market, with an absolute dollar opportunity of $33.9 B (USD). The region is expected to witness a significant growth rate due to the increasing demand for healthier options, increasing disposable incomes, and changing consumer preferences.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
