The global confectionery market was valued at $210.3 billion in 2019, and is projected to reach $270.5 billion by 2027, registering a CAGR of 3.6%. In 2019, the chocolate segment accounted for the highest confectionery market share. Confections refer to food items that are rich in sugar and carbohydrates. It includes a wide range of products such as chocolates, cookies, bars, gummies, mints, and others.
Consumer habits, tastes, and preferences are constantly evolving. This has led to innovation in the field of confectionery that drives the market growth. Manufacturers are increasing their product range by including functional ingredients, organic herbal fillings, tropical fruit, and nut-based & exotic flavors in product formulations to meet changing consumer demands. Furthermore, the trend of gifting confectionery products, such as cookies, chocolates, bakery items, and others, has enabled to propel the market growth in the recent years. Brands are constantly establishing unique engaging techniques to seek consumer attention as confectionery products are significantly purchased as a result of impulse buying. These factors have cumulatively enabled to drive the market for confectionery products. However, the volatile nature of raw material prices of sugar and cocoa can hamper the growth of the market.
The outbreak of COVID-19 has caused a severe impact on the confectionery market. The stringent rules and lockdown during the course of 2020 have led to repercussions in the confectionery business, which caused differential impact on raw material supply (agricultural produce, food ingredients, and intermediate food products), trade & logistics, demand-supply volatility, uncertain consumer demand, and affected the workforce at industrial level. One of the major factors that affected the confectionery industry during the lockdown was sales decline as a result of reduced gifting and impulse buying among consumers across the globe.
By Product Type
The medicated confectionery segment would witness the fastest growth, registering a CAGR of 4.10% during the forecast period.
According to the confectionery market analysis, the market is segmented on the basis of product type, age group, price point, distribution channel, and region. Based on product type, the market is categorized into hard-boiled sweets, mints, gums & jellies, chocolate, caramels & toffees, medicated confectionery, fine bakery wares, and others. By age group, the market is classified into children, adults, and geriatric. Based on price point, the market is distributed into economy, mid-range, and luxury. By distribution channel, the market is divided into supermarket/hypermarket, convenience stores, pharmaceutical & drug stores, food services, duty-free outlets, e-commerce and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of product type, the chocolate category was the dominant segment in 2019 with 35.2% market share. Consumers of all age groups consume chocolate confectionery to satisfy their taste buds. The growth in economic prosperity, especially in emerging countries has driven the market for the chocolate segment. Furthermore, chocolate is the highest per capita (kg) consumed confectionery product across several countries. However, the medicated confectionery segment is anticipated to grow at a faster rate during the forecast period. The increase in prevalence of minor ailments and over-the-counter medications or dietary supplements requires active ingredients such as antacids, vitamins, and herbal extracts. These products majorly propel the growth of the medicated confectionery segment. Furthermore, the rapid growth in geriatric population in the next 10 years is anticipated to boost the market growth for the medicated confectionery segment.
By Age Group
Geriatric segment would witness the fastest growth, registering a CAGR of 4.50% during the forecast period.
On the basis of age group, the adult category was the dominant segment in 2019 with 58.1% market share. Majority of the population consuming confectionery products globally falls in the adult age range, constituting (16 to 60 years). It is especially driven by the millennials as they are the highest consumers of chocolate products. Furthermore, brands are targeting their products specifically to this demographic group by adopting trends such as unusual colors, popping candy, hot & spicy options, cooling effects, and more interactive & personalized packaging. However, the geriatric segment is expected to grow at a higher CAGR during the forecast period. By the next decade, majority of the population, especially in developed economies, will be aged 60 years and above. Furthermore, the demand for confectionery products is predicted to differ from the existing pattern. This shift in demographics is anticipated to create widespread confectionery market opportunities that are targeted to the geriatric segment during the forecast period.
On the basis of price point, the economy category was the dominant segment in 2019 with 44.6% market share. Confectionery products in the economy category are targeted for mass consumption. It comprises the least priced items, and is generally affordable by consumers across all economies. Consumers look for good value, especially when choosing chocolates. However, the mid-range segment is expected to grow at a higher CAGR during the forecast period. The rise in disposable income and factors, such as product innovation, changing consumer tastes/lifestyles, and marketing/promotion activities, are expected to propel the confectionery market growth for the mid-range products segment.
By Price Point
Mid-range segment woud witness the fastest growth, registering a CAGR of 3.70% during the forecast period.
On the basis of distribution channel, the supermarket/hypermarket category was the dominant segment in 2019 with 37.9% market share. The growth of the supermarket/hypermarket segment in the confectionery market is attributed to increase in adoption of supermarket/hypermarket in the mature and emerging markets. The one-stop solution provided by these retail formats makes it a very popular option for shopping among consumers. However, the e-commerce segment is expected to grow at a higher CAGR during the forecast period. The establishment of online portals for confectionery products especially in developing countries with large population using the internet boosts the market growth. This platform offers a number of discounts on online purchase of confectionery to attract more customers. Emergence of advanced technology fosters the growth of online business across the globe.
By Distribution Channel
The e-commerce segment would witness the fastest growth, registering a CAGR of 5.70% during the forecast period.
On the basis of region, Europe accounts for a major share in the confectionery market with predominance in the chocolate confectionery segment. However, the Asia-Pacific region is expected to witness significant CAGR during the confectionery market forecast period as a result of growing disposable income, increasing population, and new brand launches from established players.
The key players operating in the global confectionery market include Mars, Incorporated, Mondelez International, Inc., Nestlé S.A., Ferrero Group, Meiji Co., Ltd., The Hershey Company, Chocoladefabriken Lindt & Sprüngli AG, Ezaki Glico Co., Ltd., Haribo GmbH & Co. K.G., and Pladis.
By Region
Asia-Pacific region woud witness the fastest growth, registering a CAGR of 4.50% during the forecast period.
Key benefits for stakeholders
- The report provides a quantitative analysis of the current confectionery market trends, estimations, and dynamics of the market size from 2021 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the confectionery market size & segmentation assist to determine the prevailing opportunities.
- The major countries in each region are mapped according to their revenue contribution to the market.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the confectionery industry.
Confectionery Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Age Group |
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 By Price Point |
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 By Distribution Channel |
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 By Region |
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 Key Market Players | UNILEVER PLC, MONDELEZ INTERNATIONAL, INC., NESTLE S.A., EZAKI GLICO CO., LTD., CROWN CONFECTIONERY, DELFI LIMITED, MARS, INCORPORATED, CHOCOLADEFABRIKEN LINDT & SPRUNGLI AG, THE HERSHEY COMPANY, FERRERO INTERNATIONAL S.A. |
Analyst Review
The confectionery industry is mature and countercyclical in nature as confectionery products are perceived as affordable luxuries. The industry is growing globally as multinational confectionery companies are offering sophisticated yet affordable products for middle-class consumers. Product innovation, strong marketing campaigns, and the retail market expansion drive the development of the confectionery market. Health awareness & consciousness among customers and diverse consumer eating habits & tastes further fuel the market growth. Consumer preferences in the sugar confectionary market are shifting toward soft mouthfeel in comparison to harder varieties. New gum and mint hybrid products, such as Ice Breakers Cool Blasts Chews, dissolve rapidly in mouth, and subsequently does not require customers to deal with waste disposal. Manufacturers focus on the development of functional gums, organic products, and sugar-free variants to boost the value sales and deliver products that support health and wellness.
Economic growth and rise in disposable income drive the growth of the confectionery market in emerging economies such as India and China. Increase in penetration of wide range of confectionery products in rural areas, diverse product range offered by established manufacturers, and rise in population are the major factors that drive the confectionery market in India.
The growth rate of the Confectionery Market during the forecast period is 3.6%.
The Confectionery Market be worth $270,514.0 million in the future.
The Confectionery Market projected to grow at 3.6% in the forecast period (2021-2027).
The base year calculated in the Confectionery Market report is 2019.
The top companies holding market share in the confectionery market include Mars, Incorporated, Mondelez International, Inc., Nestlé S.A., Ferrero Group, Meiji Co., Ltd., The Hershey Company, Chocoladefabriken Lindt & Sprüngli AG and others.
The most influencing segment growing in the Confectionery Market report is the medicated confectionery segment.
The key trends in the Confectionery Market report include growing demand for organically sourced raw materials, unique flavour confectionery products and functional ingredients, organic herbal fillings, tropical fruit, nut-based and exotic flavours in product formulations.
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