The U.S. confectionery products market was valued at USD 63.7 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. The confectionery market in the United States is driven by an increasing demand for convenience foods and the rising number of urban households. Furthermore, the rising demand for healthier confectionery products such as low-calorie and sugar-free candies, gums, and other snacks is boosting the growth of the market. The market is witnessing an increased availability of premium confectionery products, such as dark chocolates and organic snacks, due to the growing popularity of such products among health-conscious consumers.

The increasing product innovations in the U.S. confectionery market are expected to drive the growth of the market in the coming years. For instance, in October 2021, Mars, Incorporated launched a new product line, Bounty Protein with a blend of protein and oats. The product line is available in two flavors, Peanut Butter Chocolate and Chocolate Caramel. The product is free from preservatives, artificial colors, and flavors. The product is expected to capture the consumers’ attention with its unique mix of flavors and health benefits.

The increasing demand for vegan and gluten-free products is also driving the growth of the market. For instance, in January 2022, Perfetti Van Melle launched a range of vegan confectionery products in the U.S. market. The product line includes gummies and caramels, available in four flavors, such as strawberry, raspberry, mango, and pineapple. The product is made from vegan-friendly ingredients and is free from gluten, gelatin, and preservatives.

The rising demand for chocolate confectioneries is also propelling the growth of the market. According to a survey conducted by the National Confectioners Association, in 2019, the chocolate confectionery segment accounted for almost 44% of the total confectionery sales in the U.S. Consumers across all age groups are increasingly opting for chocolate confectioneries, such as candy bars, gourmet chocolates, and chocolate-covered nuts, due to their rich flavor and health benefits. For instance, in August 2021, The Hershey Company launched a new dark chocolate bar, Hershey’s Extra Dark Chocolate, to cater to the growing demand for dark chocolate in the U.S. market.

The chocolate segment held the largest share of around 52.7% in 2022. Growing demand for chocolate confectionery products among consumers is mainly attributed to the high availability of different varieties of chocolate products as well as the rising preference for healthier options. According to an article published by the American Society for Nutrition in February 2020, dark chocolate contains higher amounts of flavonoids, which have antioxidant properties, and may have a role in reducing the risk of cardiovascular disease. Additionally, increasing disposable incomes, rising consumer spending, and changing lifestyle are driving the demand for chocolates in the U.S.

The sugar confectionery segment is anticipated to expand at the fastest CAGR of 7.3% over the forecast period. Growing demand for sugar-free and low sugar confectionery products and rising health consciousness among consumers are some of the major factors driving the growth of the sugar confectionery market. Furthermore, introduction of innovative flavors, increasing marketing and promotional activities, and rising trend of gifting confectionery products are anticipated to further fuel the growth of the market.

The supermarkets and hypermarkets segment captured the major share of over 33.7% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase confectionary products. According to a study by the National Confectioners Association in 2020, Americans are spending more on candy than ever before, with the average American spending $20.66 on confectionery products each month. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required confectionery product.

The online segment is anticipated to expand at the highest CAGR of 12.4% over the forecast period. E-commerce development in the confectionery industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in October 2020, Hershey’s launched its online store, Hershey’s Happiness, offering a variety of candy, chocolate, and snacks. In addition, it will also offer the best brands and products for customers along with expert advice and opinions on choosing the best product.

The chocolate segment accounted for the largest revenue share of 58.4% in the year 2022. The growing demand for chocolate products in the United States is mainly due to the increasing demand for special occasions and gifts. Companies are also launching innovative products to capture a larger market share. For instance, in April 2022, Hershey Chocolate Co. launched a new product line called “Hershey’s Gold” which includes products like Hershey’s Gold Bars, Hershey’s Gold Miniatures, and Hershey’s Gold Peanuts & Pretzels. The growing trend of gifting chocolate products is expected to bolster the growth of the chocolate segment in the forecast period.

The sugar segment is anticipated to expand at the highest CAGR of 3.3% over the forecast period. The growing demand for sugar confectionery products such as gummies, lollipops, caramels, and hard candy is likely to boost this segment. Companies are launching new flavors to attract new customers. For instance, in March 2022, Mars Wrigley Confectionery launched a new product called “M&M’s Cookie Dough”, which is a combination of milk chocolate and cookie dough. This product is expected to gain popularity, consequently driving the growth of the sugar segment.

The U.S. confectionery products market is expected to witness robust growth over the forecast period owing to an increase in consumer spending on confectionery products, especially among millennials and Gen-Z. In 2022, the U.S. confectionery products market was dominated by the North American region, which accounted for a share of over 41.6%. The presence of numerous leading players in the region, such as Mondelez International, Mars, and Hershey’s, is expected to fuel the growth of the sector. The West region is expected to witness the fastest growth in the coming years. This is mainly attributed to the presence of a large number of artisan confectionery makers in the region, such as Chocolate Lab, Madyson’s Marshmallows, and CocoTutti Chocolate. Moreover, the popularity of chocolate-based products is expected to further drive the market in this region.

In this part of the U.S. 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 confectionery business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a U.S. Confectionery Products business comes from sales of confectionery products, wholesale accounts, franchising, and licensing. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, offering special services such as custom orders, and creating and selling custom packaging.

Projecting Expenses
In this section, all the regular expenses related to keeping the U.S. Confectionery Products business running will be described. The list of operating expenses includes ingredients, packaging materials, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the U.S. 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 October 2022, Hershey’s launched a new line of premium dark chocolates.

– In September 2022, Mondelez International launched a range of premium chocolates and candies in the U.S. market.

– In August 2022, Nestlé launched a new range of vegan, gluten-free chocolates and gummy candies.

Some of the prominent players in the U.S. confectionery market include:

– The Hershey Company
– Mondelez International
– Mars, Inc.
– Nestlé SA
– Ferrero Group
– Lindt & Sprüngli
– The Ferrero Rocher Group
– See’s Candies
– Ghirardelli Chocolate Company
– Haribo of America, Inc.

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 U.S. confectionery products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Chocolate Confectionery
– Sugar Confectionery
– Gum

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Convenience Stores
– 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

[Q]: What is the Potential Opportunity for the US Confectionery Products Market?
[A]: The US confectionery products market is expected to witness significant growth over the forecast period, driven by the increasing demand for convenience products and snacks. The market is likely to be driven by the growth in disposable income, the preference for healthy snacks and the growing trend of gifting confectionery products. The market is expected to reach an estimated value of USD 22.5 billion by 2027.

[Q]: Who are the Key Players in the US Confectionery Products Market?
[A]: The key players in the US confectionery products market are Mondelez International Inc., Mars Wrigley Confectionery US, LLC, The Hershey Company, Nestle USA Inc., Ferrero Group, Lindt & Sprüngli AG, Perfetti Van Melle USA, Inc., The Ferrero Group, Mars Inc., and Cloetta.

[Q]: What are the Factors Driving the US Confectionery Products Market?
[A]: Some of the factors driving the US confectionery products market include the growing demand for convenience foods, increasing disposable income, the rising popularity of gifting, and the increasing demand for healthy snacks.

[Q]: What are the Challenges Faced by the US Confectionery Products Market?
[A]: Some of the challenges faced by the US confectionery products market include the rising cost of raw materials, the high levels of competition, and the changing consumer preferences.