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Sugar-free Confectionery Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global sugar-free confectionery products market size was valued at USD 8.6 billion in 2022 and is projected to expand at a CAGR of 7.2% from 2023 to 2030. Sugar-free confectionery products are gaining traction due to their low-calorie content, which makes them a healthy alternative to traditional confectionery products. The increasing number of health-conscious consumers and the growing awareness of the adverse health effects of consuming large amounts of sugar are boosting the demand for sugar-free confectionery products.
In addition, the rising prevalence of obesity and diabetes has compelled consumers to opt for sugar-free food items, which is driving the growth of the market. Furthermore, increasing innovations in the product portfolios of major manufacturers is expected to create lucrative opportunities for the market during the forecast period. For instance, in August 2020, Mars Wrigley Confectionery launched M&M’s Sugar-Free Chocolate Candies in the United States. The product is made with a blend of fiber and isomalt, which provides the same texture and taste as regular M&M’s.
The growing demand for organic and vegan products is also driving the market growth. For instance, in April 2021, Mondelēz International announced the launch of its first organic and vegan gum brand, Chappie Organic. The product is made with organic ingredients and is free from artificial colors and flavors, as well as sugar and sweeteners.
Furthermore, the increasing demand for sugar-free products in the foodservice industry is expected to drive the market growth. For instance, many bakeries, cafes, and restaurants are offering sugar-free cakes and desserts to meet customer needs. In addition, increasing consumer spending on confectionery products is expected to drive the market growth.
Moreover, rising consumer expenditure on sugar-free confectionery products is expected to propel the market growth in the coming years. Supported by the rising trend of health consciousness, the demand for sugar-free confectionery products is increasing. Furthermore, the increasing demand for sugar-free confectionery products in the global market is expected to drive the market growth.
Product Insights
The sugar-free confectionery products segment is expected to expand at a CAGR of 5.9% over the forecast period. Growing consumer awareness and rising demand for sugar-free confectionery products are some of the key factors driving the growth of the sugar-free confectionery market. According to an article published by Food Revolution Network, in April 2018, more than 70% of Americans are actively trying to reduce sugar intake. Furthermore, rising consumer preference for healthier and organic products is driving the demand for sugar-free confectionery products. Additionally, the emergence of various sugar-free confectionery brands and products is also boosting the growth of the market.
The sugar-free chocolate segment led the market and accounted for a share of around 39.8% in 2018. Demand for sugar-free chocolate has been increasing at a rapid pace due to its health benefits. According to an article published by Mintel, in August 2019, nearly one-third of chocolate eaters are actively trying to reduce their sugar intake. Furthermore, various sugar-free chocolate products are being launched by major manufacturers such as Hershey’s and Nestle, which is creating a positive impact on the sugar-free chocolate market.
Distribution Channel Insights
The supermarkets and hypermarkets segment dominated the market with a share of over 42.3% in 2022. The growth of the segment is mainly driven by the growing consumer preference for supermarkets and hypermarkets as a primary source to purchase sugar-free confectionery products. Supermarkets and hypermarkets also provide a wide selection of products and help customers in making quick purchasing decisions for the required confectionery item.
The online segment is expected to expand at the highest CAGR of 11.3% over the forecast period. The increasing penetration of the internet and the rising number of online shoppers have been instrumental in driving the segment. Moreover, the convenience offered by online shopping and the availability of discounts and offers have encouraged people to shop for sugar-free confectionery products online. Companies have also developed online shopping websites and mobile applications to increase their brand visibility among consumers. For instance, in February 2021, Hershey’s launched an online store to expand its online presence in the global sugar-free confectionery market.
Type Insights
The sugar-free segment accounted for the highest revenue share in the year 2022. The growing health consciousness among consumers and the rising prevalence of lifestyle diseases such as diabetes and obesity are the major factors driving the demand for sugar-free confectionery products. Companies are introducing innovative products and developing new flavors to meet the changing consumer preferences. For instance, in May 2020, Hershey Co. launched new sugar-free versions of its popular products such as Hershey’s Kisses, Reese’s Peanut Butter Cups, and Hershey’s Caramel Bars.
The organic segment is anticipated to expand at the highest CAGR over the forecast period. The growing demand for naturally produced food products due to their health benefits is driving the segment. The availability of organic confectionery products is increasing as more companies are shifting their focus to organic product offerings. For instance, Nestle SA launched organic confectionery products, such as organic Kinder Chocolate bars and organic Nesquik chocolate powder without added sugar, in Germany in April 2021.
Regional Insights
North America is expected to hold the largest share of the sugar-free confectionery market during the forecast period. This is attributed to the presence of numerous sugar-free confectionery product manufacturers in the region, such as Nestle, Hershey’s, and Mars. These companies offer a wide variety of sugar-free confectionery products, including gums, jellies, and hard candies, which are gaining high popularity among consumers. In addition, rising awareness regarding the health benefits of sugar-free products is also driving the growth of the market in the region.
Europe is expected to be the second-largest region in the sugar-free confectionery market during the forecast period. This is attributed to the increasing demand for sugar-free products in the region. Consumers in the region are increasingly preferring sugar-free confectionery products due to their health benefits. For instance, unrefined chocolates are gaining popularity in the region, as they contain no added sugars, but they do contain natural sweeteners such as dates and honey. In addition, the presence of major confectionery manufacturers, such as Mondelez International, is expected to further drive the growth of the market in the region.
Financial Projections
In this part of the sugar-free 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 sugar-free confectionery products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a sugar-free confectionery business comes from retail sales and online sales. Other possible sources of profit such as wholesale sales, fundraising, and the sale of merchandise should also be taken into account.
Projecting Expenses
In this section, all the regular expenses related to keeping the sugar-free confectionery business running will be described. The list of operating expenses includes raw materials, packaging, wages, advertising, marketing, utilities, insurance policies, and more.
Key companies & market share insights
Some of the key companies operating in the sugar-free confectionery 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 June 2020, Hershey’s introduced sugar-free chocolate bars as part of its sugar-free confectionery range.
– In August 2020, Mars Inc. launched sugar-free candies in the US.
– In October 2020, Mondelez International launched sugar-free versions of their popular Oreo cookies.
Some of the prominent players in the sugar-free confectionery market include:
– Mars Inc.
– Mondelez International
– Nestle SA
– Ferrero International
– Hershey’s
– Lindt & Sprungli AG
– Perfetti Van Melle
– Kraft Foods Group, Inc.
– Amul
– Haribo GmbH & Co. KG
Global Sugar-free 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 sugar-free confectionery products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Chocolate
– Hard-Boiled Candies
– Chewing Gums
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Sugar Free
– Low Sugar
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 major growth drivers of the Sugar-free Confectionery Products market?
[A]: The major growth drivers for the sugar-free confectionery products market are the increasing awareness about the health benefits of sugar-free products, an increase in the number of health-conscious consumers, and a rise in the number of obese and diabetic individuals. Moreover, the introduction of innovative sugar-free products and the growing influence of social media are also boosting the market.
[Q]: Who are the leading players in the sugar-free confectionery products market?
[A]: The major players in the sugar-free confectionery products market are Mars, Incorporated, Mondelez International, Inc., Ferrero International S.A., Nestle S.A., The Hershey Company, Lindt & Sprungli AG, Perfetti Van Melle S.p.A., and Amul India.
[Q]: What are the trends in the sugar-free confectionery products market?
[A]: The sugar-free confectionery products market is witnessing a trend of rising demand for organic and natural sugar-free products. Moreover, manufacturers are investing in product innovation, such as the introduction of sugar-free chocolate variants and the use of natural sweeteners, to make their products more appealing to health-conscious consumers.
[Q]: What are the opportunities in the sugar-free confectionery products market?
[A]: The increasing focus on health and wellness, along with the rising number of health-conscious consumers, is creating numerous opportunities for the sugar-free confectionery products market. Additionally, the emergence of e-commerce and the availability of a wide range of sugar-free products are also contributing to market growth.
[Q]: Which region is expected to be the largest market for sugar-free confectionery products?
[A]: The Asia Pacific region is expected to be the largest market for sugar-free confectionery products, owing to the increasing awareness about health benefits of sugar-free products, the growing number of health-conscious consumers, and the increasing demand for organic and natural products.
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
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