Confectionery Market

Confectionery Market Outlook from 2024 to 2034

The global Confectionery market is estimated to be worth USD 305,673.6 million in 2024 and is projected to reach a value of USD 558,145.9 million by 2034, expanding at a CAGR of 6.2% over the assessment period of 2024 to 2034

Confectionery markets are in the production of a wide variety of food items like chocolates, candies, caramels, toffees, cookies, lollipops, and many others, which are rich in sugar and sweet content. Sugar-free confections are gaining popularity in recent years due to factors such as increasing obesity rate, increasing number of diabetic patients, increasing nutritional and health concerns, and changing lifestyles.

Most confectionery market items consist of food products like cocoa, honey, nuts, fruits, milk, sugar, and many more that are consumed globally in developed and developing countries. Confectionery is generally low in micronutrients but rich in calories and carbohydrates.

The confectionary industry has adapted to changing consumer preferences by introducing healthier options and offering a wider variety of flavors and textures. For instance, there is an increasing demand for confectionary products made with natural ingredients, and companies are responding to this by introducing more organic and natural products.

• Mars launched ‘vegan-friendly’ chocolate in its first-ever animal-free, lactose-free, and “early-friendly” product in the USA partnership with Perfect Day.
• Mondelez International launched Cadbury's first vegan plant-based chocolate bar on global level. Mondelez International rolled out a Cadbury Plant Bar, which is a plant-based vegan alternative, in the UK and Ireland
• GATSBY launched first vegan and low-calorie oat milk chocolate bars on global level. It rolled out two new non-dairy and vegan picks made with oat milk including Oat Milk Crunch and Oat Milk Salted Almond.

Attributes	Description
Estimated Global Confectionery Business Size (2024E)	USD 305,673.6 million
Projected Global Confectionery Business Value (2034F)	USD 558,145.9 million
Value-based CAGR (2024 to 2034)	6.2%

Semi-Annual Demand Space Update

The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global confectionery market.

This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.

Particular	Value CAGR
H1	5.8% (2023 to 2033)
H2	6.0% (2023 to 2033)
H1	6.3% (2024 to 2034)
H2	6.6% (2024 to 2034)

The above table presents the expected CAGR for the global confectionery demand space over semi-annual period spanning from 2024 to 2034. In the first half (H1) of the year 2023, the business is predicted to surge at a CAGR of 5.8%, followed by a slightly higher growth rate of 6.0% in the second half (H2) of the same year.

Moving into year 2024, the CAGR is projected to increase slightly to 6.3% in the first half and remain relatively moderate at 6.6% in the second half. In the first half (H1 2024) the market witnessed a decrease of 18 BPS while in the second half (H2 2024), the market witnessed an increase of 26 BPS.

Key Industry Highlights

Antioxidant-Rich Dark Chocolate Gaining Popularity

Dark chocolate is being favored by health-conscious consumers due to its rich content of antioxidants, which are believed to combat free radicals and reduce inflammation. Additionally, dark chocolate contains higher cocoa percentage and less sugar compared to milk chocolate, which makes it a healthier choice.

Studies suggest that moderate consumption of dark chocolate can improve heart health, enhance brain function, and even elevate mood. These perceived health benefits have markedly boosted its popularity, leading to increased sales in the chocolate confectionery market. Brands are introducing a variety of dark chocolate products, including bars, truffles, and snacks.

Nestle launched 70% dark chocolate Kitkat bar in UK and Ireland, which is a limited edition treat. Further the dark chocolate bar is made with cocoa mass sourced from farmers.

Driving Sales with Smart Confectionery Packaging Solutions

Innovative packaging solutions are revolutionizing the confectionery market by addressing to modern consumer demands for convenience and sustainability. Resealable bags offer the practicality of keeping products fresh and portable, ideal for on-the-go snacking.

Single-serving packs provide portion control, appealing to health-conscious individuals and those seeking quick, easy treats. Eco-friendly materials, such as biodegradable or recyclable packaging, resonate with environmentally aware consumers who prioritize reducing their carbon footprint.

Mars launched its snickers bars in China which features individual packaging, made from a mono PP Material which has a concept of “designed for recycling”.

Boosting Sales with Exclusive Seasonal Offerings

Seasonal and limited-edition products leverage the psychology of scarcity and exclusivity to boost sales. By offering unique flavors and products only available for a short period, brands create a sense of urgency among consumers, which encourages them to purchase before the time is gone.

This strategy is particularly effective during holidays and special occasions when consumers are more inclined to indulge or gift. The limited availability not only drives immediate sales spikes but also enhances brand appeal and customer loyalty, as consumers associate the brand with special, memorable experiences. This strategy also generates buzz and word-of-mouth marketing.

The Growing Demand for Health-Oriented Confectionery

Functional confectionery is getting popular as consumers are searching for snacks that offer health benefits beyond mere indulgence. These products, like energy-boosting candies or stress-relief gummies, cater to the growing demand for wellness-oriented treats. By including ingredients such as vitamins, adaptogens, or natural stimulants, functional confectionery provides added value, appealing to health-conscious individuals.

This reflects a broader shift towards thoughtful eating, where consumers are prioritizing snacks that support their lifestyle and well-being. As a result, brands are innovating to create confectionery that not only satisfies sweet cravings but also contributes to overall health, making them a popular choice in the market.

Warrior, a sports nutirion brand announced about innovating a high protein range of crunch bars which includes new white chocolate blondie flavour.

Exclusive Flavors and Unique Placements in Travel Confectionery

The travel and hospitality industry are improving their confectionery offerings to address to travelers searching for unique and convenient treats. Airports, hotels, and other travel-related locations now feature exclusive flavors and special product placements, which creates a memorable experience for customers.

These offerings often include limited-edition items and region-specific flavors that allure to tourists and frequent travelers. By providing these unique choices, the travel retail and hospitality industry not only boost sales but also improves customer satisfaction and brand loyalty.

Rise of the Gourmet Gum and Mints Market

The gourmet gum and mints market is expanding as adult consumers are seeking more refined taste experiences. These products feature high-quality ingredients and unique flavors, such as exotic fruits, herbs, and spices, which distinguishes them from traditional offerings. This shows a broader shift towards artisanal and specialty foods, where consumers prioritize quality and uniqueness over mass-produced alternatives.

2019 to 2023 Global Confectionery Sales Analysis Compared to Demand Forecasts for 2024 to 2034

Global Confectionery sales increased at a CAGR of 6.2% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on Confectionery will rise at 5.1% CAGR

The availability of confectionery products through multiple distribution channels remarkably improves retail space reach and consumer convenience. Food service outlets like restaurants and cafes offer immediate consumption options, while retail stores, including supermarkets and specialty shops, provide easy access for everyday purchases.

Online platforms further expand accessibility, which allows consumers to shop from the comfort of their homes and benefit from delivery services. This multi-channel approach caters to diverse consumer preferences and shopping behaviors, which ensures that products are available wherever and whenever needed. Consequently, this widespread availability drives higher sales volumes and promotes brand loyalty by meeting consumer demands efficiently.

Health-conscious consumers are constantly seeking alternatives that satisfy their sweet cravings without the added sugar. Sugar-free candies purvey to this demand by offering guilt-free indulgence, appealing to those managing their sugar intake due to health conditions like diabetes or dietary preferences.

This is driving innovation in the confectionery industry, with brands developing a variety of sugar-free options that maintain taste and quality, thereby expanding their consumer base and driving industry growth. In partnership with NEOH, Ankerbot- an Australian bakery cahin launched a sugar- free vegan donut.

Market Concentration

Tier 1 companies comprise market leaders with market revenue of above USD 100 million capturing significant sales domain share of 45% to 55% in the global sphere. These business leaders are characterized by high production capacity and a wide product portfolio.

These trade leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality.

Prominent companies within tier 1 include Ferrero International S.A., Nestle SA, The Hershey Company, Lotte Confectionery Co. Ltd., Perfetti Van Melle Group B.V. , Mondelez International, Inc., Mars Inc., and Chocoladefabriken Lindt & Sprüngli Ag.

Tier 2 companies include mid-size players with revenue of USD 50 to 100 million having presence in specific regions and highly influencing the local retail space. These are characterized by a strong presence overseas and strong consumer base knowledge.

These industry players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Meiji Holdings Company, Ltd, Ezaki Glico Co. Ltd, Kervan Gida Sanayi Ve Ticaret AS, Yildiz Holding, and August Storck KG.

Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche demand space having revenue below USD 50 million. These companies are notably oriented towards fulfilling local marketplace demands and are consequently classified within the tier 3 share segment.

They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized field, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.

Country-wise Insights

The following table shows the estimated growth rates of the top sales domains. The United Kingdom and China are set to exhibit high confectionery consumption, recording CAGRs of 6.5% and 7.5%, respectively, through 2034.

Countries	CAGR 2024 to 2034
Germany	4.4%
UK	6.5%
USA	3.1%
China	7.5%
Japan	3.2%

Germany to Retain Dominance in Confectionery Sales

Confectionery demand in Germany is calculated to rise at a value CAGR of 4.4% during the forecast period (2024 to 2034). By 2034, Germany is expected to account for 29.4% of Confectionery sales in Europe.

Germany’s reputation for high-quality confectionery stems from its meticulous production standards and use of premium ingredients, making its chocolates and sweets highly sought after both domestically and internationally. The market is diverse, which offers everything from traditional treats like marzipan and gingerbread to innovative flavors and health-conscious choices, such as sugar-free and organic sweets.

This extensive variety addresses to a wide range of consumer preferences, ensuring continuous interest and engagement. Additionally, German confectionery brands often emphasize sustainability and ethical sourcing, which further enhances their appeal in the current consumer market. This combination of quality, variety, and ethical practices solidifies Germany’s leading position in the confectionery industry.

Demand Outlook for Confectionery in United States

The ecosystem for Confectionery in the United States is projected to exhibit a CAGR of 3.1% during the assessment period. By 2034, revenue from the sales of Confectionery in the country is expected to reach USD 79.8 billion.

Major confectionery brands like Mondelez International, The Hershey Company, and Ferrero have dramatically expanded their market presence in the USA This expansion, linked with improved distribution channels and online availability, has made their products more accessible to a broader audience, driving market growth.

Further, confectionery products are integral to seasonal celebrations and gifting traditions. Post-pandemic, there’s been a resurgence in these activities as individuals are reconnecting with traditional festivities. This renewed enthusiasm for celebrations has boosted the demand for sweets and chocolates, making them popular choices for sharing and gifting during holidays and special occasions.

Innovative Flavors Boosting Confectionery Sales in China

Consumption of Confectionery in China is projected to increase at a value CAGR of 7.5% over the next ten years. By 2034, the segment size is forecasted to reach USD 38.8 billion, with China expected to account for a demand space share of 60.8% in East Asia.

The increasing exposure to Western culture through media, travel, and international trade has introduced Chinese consumers to a wide range of Western confectionery products. This includes popular chocolates, candies, and sweets that were previously less common in China. Because of this, these products have gained popularity, especially among younger generations who are more open to trying new flavors and brands.

To accommodate with local tastes, confectionery companies are developing innovative products that blend traditional Chinese flavors with Western confectionery styles. For instance, including green tea-flavored chocolates, red bean candies, and other unique combinations. This fusion of flavors appeals to Chinese consumers’ preferences while offering something new and exciting, further driving and amplifying consumption.

Category-Wise Insights

Impulse Buying and Wide Distribution: Retail’s Impact on Confectionery Sales

Segment	Retail/Household (Distribution Channel)
Value Share (2024)	49.9%

Sales from retail/ household segment is projected to register a CAGR of 6.4% from 2024 to 2034. Retail stores, including supermarkets, convenience stores, and gas stations, offers a broad range of confectionery products, which addresses to diverse tastes and preferences. This wide variety encourages consumers to explore and try new products.

The accessibility and convenience of these retail outlets play a significant role in driving confectionery sales. Shoppers often make impulse purchases of sweets and chocolates while buying other necessities, adding to the overall sales volume.

Moreover, major confectionery brands ensure their products are widely distributed across these retail channels, which makes it easy for consumers to find and purchase their favorite treats. This wide distribution network ensures that confectionery products are readily available, increasing their visibility and accessibility.

Retail stores also frequently run promotions and discounts, which attract consumers to buy confectionery items. This further make retail sales channels a dominant force in the confectionery market, driving higher sales and consumer engagement.

Competition Outlook

The Confectionery territory encompasses a diverse and dynamic competitive landscape. Leading Confectionery manufacturing companies are focusing on continuously developing new and unique flavors, including health-conscious options like sugar-free and organic sweets, to cater to evolving consumer preferences. And creating emotional connections with consumers through storytelling, brand heritage, and engaging marketing campaigns helps build brand loyalty.

For instance:

• The Greater Goods Snacking Co., a clean-label snack brand, introduced three new product lines to the USA marketplace in 2022. The cookie product line includes flavors including Cinnamon Snickerdoodle, Chocolate Chip, and Chai Spice, while the cracker options include Tangy Tomato & Basil, Caramelized Onion, and Sea Salt variety.
• Additionally, biscotti in flavors including Orange Cranberry, Dark Chocolate Sea Salt, and Double Dark Chocolate Pistachio will be launched by the brand.
• Established in the UK Moo Free, a plant-based vegan chocolate firm, introduced the "Jub-moo-lee Bar." The "Jub-moo-lee Bar," a limited edition product, includes a wrapper stuffed with wildflower seeds for consumers to plant, offering a supplementary keepsake of the momentous occasion to honor the monarch's seven decades on the throne. The special edition line is made with fine grade Hispaniola cocoa beans.

Leading Confectionery Brands

• Ferrero International S.A.
• Nestle SA
• The Hershey Company
• Lotte Confectionery Co. Ltd.
• Perfetti Van Melle Group B.V.
• Meiji Holdings Company, Ltd
• Mondelez International, Inc.
• Ezaki Glico Co. Ltd
• Chocoladefabriken Lindt & Sprüngli Ag
• Mars Inc.
• Kervan Gida Sanayi Ve Ticaret AS
• Yildiz Holding
• August Storck KG
• Others

Key Segments of the Report

By Product Type:

As per product type, the ecosystem has been categorized into Chocolate Confectionery, Sugar Confectionery, Gum & Mints, Bakery Confectionery/Baker’s Confectionery, and Functional/ Medicated Confectionery.

By Flavor:

This segment is further categorized into Fruits, Nuts, Chocolate, Vanilla, Coffee, Mint & Peppermint, and Other (Cola, Blends).

By Distribution Channel:

This segment is further categorized into Food Service, Airport Retail, Travel Retail (airplanes, Cruise ships), and Retail/Household.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.

Frequently Asked Questions

What is the current value of the Confectionery Industry?

The global Confectionery industry is estimated at a value of USD 305,673.6 million in 2024.

At what rate did the revenue stream for Confectionery grow between 2019 and 2023?

Sales of Confectionery increased at 5.1% CAGR between 2019 and 2023.

Who are the leading manufacturers of Confectionery ?

Ferrero International S.A., Nestle SA, The Hershey Company, Lotte Confectionery Co. Ltd., Perfetti Van Melle Group B.V., Mondelez International, Inc., Mars Inc., and Chocoladefabriken Lindt & Sprüngli Ag are some of the leading players in this industry.

Which region will garner a significant value share by 2034?

The Europe sales domain is projected to hold a revenue share of 41.2% over the forecast period.

What share does North America account for in the global Confectionery demand space in 2024?

North America holds 18.7% share of the global demand space for Confectionery.