The global sugar confectionery market is expected to be valued at USD 53.21 billion in 2023 and is expected to reach USD 81.07 billion by 2033, registering a CAGR of 4.3% from 2023 to 2033.
Nearly all socioeconomic categories enjoy sugar confectioneries. Numerous foods, including boiled sweets, toffees, marshmallows, and fondant, are included in the category of sugar confectionery. A concentrated sugar solution is warmed and then cooled to produce a firm substance with less than 2% moisture, a process by which boiled sweets are manufactured.
These sugar confectionery goods come in a wide variety, from individually wrapped sweets to cheap items in beautiful wrapping. The chosen type of confectioneries frequently varies by geographic location owing to differences in regulatory standards and other considerations including economics, flavor, and consumer desire.
The expansion of the sector is fueled by increased disposable income, a growing population, and the rising demand from middle-class customers. Growing urbanization and shifting customer behavior both contribute to the sugar confectionery industry's expansion.
During the forecast period, large investments by manufacturers in promotion strategy, marketing campaigns, and social media promotion are anticipated to drive demand for sugar confectionery items. The demand is also estimated to be driven by the development of new products with distinctive tastes and nutritious components.
The expansion of the sugar confectionery sector is also supported by the expanding retail sector and the growing e-commerce industry. The growth of online sales channels is one of the key influences on the sugar confectionery industry.
Supermarkets, pharmacy stores, convenience stores, specialty shops, and hypermarkets are all significant direct sales channels. Increased accessibility to items in the sugar confectionery sector has been made possible by retailers' and manufacturers' ongoing attempts to lengthen their supply and distribution chains.
The success of e-commerce in the sugar confectionery business is mostly due to the ease of making payments through online channels as well as the broad selection of sugar flavors and textures. The development of the global sugar confectionery market is also attributed to the rising usage of sugar confectionery in the formulation of a broad range of sweets and drinks, including cakes, milkshakes, croissants, and hot sugar.
The expanding trend of low-fat convenience foods in emerging nations and the increased demand for low-fat food items have prompted market participants in the sugar products business to introduce novel goods to suit local customer tastes.
Market opportunities are anticipated to be created by factors including expanding demand from developing countries, the trend of giving confectionery items as gifts, and rising consumer desire for luxury and organic confectionery products. The sector is anticipated to experience significant growth soon due to customer preferences for plant-based foods expanding and the prominence of food producers supplying natural confectionery alternatives. However, the expansion is anticipated to be constrained by increasing health consciousness, rising diabetes cases, increasing obesity-related disorders, and a change in the trend toward low-calorie food intake.
The sugar confectionery market's opportunity for expansion is also expected to be restrained by the ease with which product alternatives are readily available and strict government laws governing quality standardization. The significant expansion of the sugar confectionery business also is likely to be hampered by the high cost of research and development activities in addition to the erratic pricing of raw materials.
| Attributes | Details |
|---|---|
| Sugar Confectionery Market Value (2023) | USD 53.21 billion |
| Sugar Confectionery Market Expected Value (2033) | USD 81.07 billion |
| Sugar Confectionery Market Projected CAGR (2023 to 2033) | 4.3% |
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The sugar confectionery market was worth USD 39.63 billion in 2016 and USD 51.02 billion in 2022. Therefore, during the historical period, the market experienced substantial growth. This can be attributed to several factors, including increasing disposable income, changing consumer lifestyles, and the availability of a wide range of products. Additionally, the rise of e-commerce platforms made it easy for consumers to purchase confectionery products, thereby driving the market growth.
Despite this growth, the sugar confectionery industry faced certain challenges as well. The rise in health consciousness among consumers led to increasing concerns about sugar intake and its impact on health, leading to a slowdown in demand for a few sugar confectionery products. The Covid-19 pandemic in 2020 also had a significant impact on the market, with lockdowns and supply chain disruption leading to a decline in production and sales.
According to FMI's analysis of global demand for sugar confectioneries, the market is estimated to be worth USD 53.21 billion in 2023. Therefore, given the industry's growth, it makes sense to predict that the market may experience a wide variety of possibilities during the forecast period.
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These factors are anticipated to support a 1.5X increase in the sugar confectionery market between 2023 and 2033. According to FMI analysts, the market is projected to be worth USD 81.07 billion by 2033.
Given the increasing focus on overcoming the difficulties of producing on-trend confections, the sugar confectionery market size from the hard-boiled sweets segment is anticipated to exhibit a substantial growth rate throughout the forecast period. The hard-boiled sweets segment dominates the market due to a combination of factors, including affordability, long shelf life, variety of flavors, and convenient packaging.
These sweets are relatively inexpensive to produce, allowing a wide range of consumers to enjoy a sweet treat. Their long shelf life, lasting several months without losing quality or flavor, makes them an ideal option for manufacturers and retailers.
Hard-boiled sweets come in a variety of fruit, mint, and floral flavors, appealing to different taste preferences. The convenience of individual packaging, making them easy to carry and consumer on the go, also makes them a popular choice for busy consumers.
Food businesses have begun creating hard-shine, extremely shelf-stable, low-sugar hard-boiled chocolates. Consumption of hard-boiled treats like caramel, toffee, hard gums, and fruit drops may increase globally as a result of the growing consumer desire for low-sugar items. Overall, these factors have contributed to the dominance of the hard-boiled sweets segment. By 2033, the hard-boiled sweets segment is predicted to expand at a 4.9% CAGR and reach USD 25.58 billion.
The sugar confectionery market is dominated by the offline stores segment due to several reasons, including the widespread availability of these products and the tangible shopping experience they offer. Consumers can physically inspect and purchase the products. They can also benefit from the advice and recommendation of store employees. On the other hand, the online platforms segment is growing at a fast pace due to the increasing popularity of online shopping and the convenience that it offers.
Consumers can easily brow and purchase products from the comfort of their own homes, and online platforms also offer a wide selection of products compared to brick-and-mortar stores.
Online platforms can provide competitive prices and promotions, which can further drive consumer demand. Despite the growth of the online platforms segment, the offline stores segment is expected to continue to play a dominant role in the market.
Principal Consultant
The market in the United States is a highly competitive and dynamic industry. The market is driven by consumer demand for sweet treats and snacks as well as increasing interest in premium and artisanal confectionery products. Modern consumers seek delicious confections in various flavors that are of exceptional quality.
Over the forecast period, this factor is predicted to fuel the expansion of the United States sugar confectionery market. Sales of candies increased by 11% in 2021 over 2020, according to the NCA's third-annual State of Treating review, which was published in 2022. This increase was attributed to consumers' increased attention to holiday festivities, gifting, and emotional comfort.
About 47% of consumers love buying confectionery items they believe to possess a ‘better-for-you’ identity, however, how that judgment is formed varies immensely across socioeconomic groups. Confectionery makers are spending more on the production of products with less sugar or no sugar as customers become more health conscious, particularly as a result of the rise in obesity and diabetes cases.
Modifications in confectionery products have mainly aimed to treat diabetes and other health issues connected to candy consumption. To appeal to health-conscious consumers, key market participants are producing sugar-free, GMO-free, gluten-free, and vegan confectionery products. For example, Original Gourmet introduced their line of United States FDA-certified Organic Lollipops in February 2022. These popsicles are not just GMO-free, but also vegan, gluten-free, peanut-free, and produced entirely with natural ingredients.
As the demand for healthy confectionery in North America has increased, many businesses have begun introducing products to cater to customer demands. For example, Hu Organic Grass-Fed Milk Chocolate was introduced by Mondelez in August 2022. Coconut sugar that is organic and unrefined is used to sweeten the product.
The market in the United States is a highly competitive and dynamic industry. The market is driven by consumer demand for sweet treats and snacks as well as increasing interest in premium and artisanal confectionery products. Modern consumers seek delicious confections in various flavors that are of exceptional quality.
Over the forecast period, this factor is predicted to fuel the expansion of the United States sugar confectionery market. Sales of candies increased by 11% in 2021 over 2020, according to the NCA's third-annual State of Treating review, which was published in 2022. This increase was attributed to consumers' increased attention to holiday festivities, gifting, and emotional comfort.
About 47% of consumers love buying confectionery items they believe to possess a 'better-for-you' identity. However, how that judgment is formed varies immensely across socioeconomic groups. Confectionery makers are spending more on the production of products with less sugar or no sugar as customers become more health conscious, particularly as a result of the rise in obesity and diabetes cases.
Modifications in confectionery products have mainly aimed to treat diabetes and other health issues connected to candy consumption. To appeal to health-conscious consumers, key market participants are producing sugar-free, GMO-free, gluten-free, and vegan confectionery products. For example, Original Gourmet introduced their line of United States FDA-certified Organic Lollipops in February 2022. These popsicles are not just GMO-free but also vegan, gluten-free, peanut-free, and produced entirely with natural ingredients.
As the demand for healthy confectionery in North America has increased, many businesses have begun introducing products to cater to customer demands. For example, Hu Organic Grass-Fed Milk Chocolate was introduced by Mondelez in August 2022. Coconut sugar that is organic and unrefined is used to sweeten the product.
In the wholesale and specialty divisions, Germany has one of the leading confectionery markets. The premium candy section of the confectionery business, however, has been gaining steam because the wholesale market has already exceeded the rate. The enormous market for organic and sustainably produced confectionery is supporting this with rising demand. Therefore, the Germany sugar confectionery market is projected to showcase a CAGR of 3% during the forecast period.
As a result of advancements in the retail sector, the industry is seeing significant sales via online sales channels. Since they provide huge discounts, people prefer to buy products from online retailers. Therefore, through channels like Amazon, eBay, Otto, Tchibo, and Weltbild, which are also among the markets leading online participants, sugar confectionery product sales are increasing in Germany at an effective rate. The online food industry in Germany, including sales of confectionery, acquired a market share of 2.7% in 2021, according to Handelsverband Deutschland (German Retail Association).
Sales of confectionery products are rising in China primarily as a result of customers' increased use of confectionery products as a snack, along with their rising spending power. China has emerged as the world's leading confectionery market owing to the introduction of several novel confectionery products. In addition to being consumed as ready-to-eat snacks in between meals, sugar confectionery items are frequently given as presents. In order to ingest less sugar, customers in China favor compact confectionery product containers. Additionally, customers consume confectionery products to relieve tension.
In recent years, there has been a growing trend towards healthy and more natural confectionery products, such as sugar-free or low-calorie options, which provides new opportunities for market growth. In addition, e-commerce and online sales channels are becoming increasingly popular in China, providing new opportunities for the marketing and distribution of sugar confectionery products. Therefore, China sugar confectionery market is anticipated to expand at a CAGR of 7.3% from 2023 to 2033, reaching a projected value of USD 19.08 billion.
Japan sugar confectionery market is known for its diverse range of products, high quality, and unique flavors. The market is dominated by domestic companies, such as Meiji, Morinaga, and Lotte, which offer a wide variety of candy products. The market in Japan also has a strong tradition of seasonal and regional specialities, such as mocha (sweet rice cake) and ningyo yaki (sweet bean paste-filled pancakes).
In recent years, the market in Japan has seen steady growth, driven by a combination of factors such as a growing population, an increase in disposable income, and a growing demand for premium and health-conscious products. In addition, the market has also benefited from a rise in domestic tourism and an increase in foreign visitors to Japan. The market in Japan is projected to expand, exhibiting a CAGR of 2.3% during the forecast period.
Sugar confectionery producers are constantly innovating and adapting to changing consumer preferences, such as increasing demand for healthy options and reducing sugar content in products. They are also expanding their product ranges and exploring new markets. Companies are also using digital platforms to improve their reach and customer engagement.
Several start-ups in the market are focused on offering traditional sugar confectionery products with a twist. On the other hand, certain start-ups are experimenting with new ingredients and flavors to cater to changing consumer preferences.
Top Start-ups in the Sugar Confectionery Market
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Recent Developments:
The market is estimated to secure a valuation of USD 53.21 billion in 2023.
The growth potential of the market is 4.3% through 2033.
The global market size is estimated to reach USD 81.07 billion by 2033.
Ferrero SpA., Lindt, and Sprungli are the key market players.
China’s market expanded at a CAGR of 7.3% from 2023 to 2033.
1. Executive Summary | Sugar Confectionery Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Caramel & Toffees 5.2. Pastilles & Jellies 5.3. Nougat 5.4. Gummy 5.5. Mints 5.6. Hard Boiled Sweets 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 6.1. Supermarkets/Hypermarkets 6.2. Convenience Stores 6.3. Online Retail 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Barry Callebaut 15.2. Olam Group 15.3. The Hershey Company 15.4. Kerry Group plc 15.5. Blommer Chocolate Company 15.6. Mars, Inc. 15.7. Haribo GmbH & Co. KG 15.8. Ferrero Group 15.9. August Storck KG 15.10. Perfetti SPA 16. Assumptions & Acronyms Used 17. Research Methodology
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Sugar Confectionery Market
