Confectionery Market Overview:
Global Confectionery Market size was valued at $184,056 million in 2015, and is expected to reach $232,085 million by 2022, supported by a CAGR of 3.4% during the forecast period 2016 - 2022. Confectionery market comprises array of food products such as chocolates, raw pastes, and various sugar-based products. In addition, it includes therapeutic and dietetic confectioneries that differ in formulations from traditional confections. The preferred type of confectioneries often differ according to the geographical regions due to difference in regulatory norms and other factors such as economy and taste & preference of customers. The global confectionery market is growing at a steady pace owing to high demand from middle-class consumers.
Product innovation in terms of formulations, processing, and packaging is the major factor that drives the growth of the confectionery industry. Moreover, retail market expansion and economic growth in advanced & emerging economies supplement the market growth. Asia-Pacific confectionery market showed the highest growth rate in 2015. Product portfolio extensions and new brand launches from established players are significant factors that fuel the market growth in Asia-Pacific. Key players in the region largely invest on advertising campaigns and marketing to enhance their brand recognition and influence in the confectionery industry. Ferrero China Ltd., a confectionery company promotes its products as gifts for weddings and other occasions. Fluctuation in prices of raw materials, growth in health awareness among consumers about sugar intake, and diverse consumer spending habits limit the confectionery market growth. Rise in demand for low-calorie, organic, sugar-free and functional products provide lucrative growth opportunities to the confectionery industry.
Confectionery market is segmented on the basis of type and region. Based on type, the market is categorized into sugar, chocolate, fine bakery wares, and others. In terms of sugar confectionery, the market is divided into hard-boiled sweets, caramel & toffees, gums & jellies, medicated confectionery, mints, and others. Chocolate confectionery is subsegmented into white, milk, and dark chocolate. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
In January 2016, International Monetory Fund (IMF) estimated that the economic growth rates of advanced and emerging economies are expected to rise from 1.9% and 4.0% in 2015 to 2.1% and 4.7% in 2017, respectively. This is attributed to increase purchasing power of the customers.
Global Economic Growth Rate, by Area, 2015-2017
Confectionery Industry: Patent Analysis by Company
The highest number of patents related to confectionery products were registered by Nestle S.A. during 2012‐2016. The company’s strategic expansion in overseas countries and high overseas sales ratio has encouraged it to invest in R&D and file patents in foreign countries.
Patent Analysis, by Company, 2012-2016
- Product innovation
Introduction of odor sensations, combination of liquid & solid flavors, and energy boosts in confectionery products drive the growth and development of the confectionery market globally. In January 2017, Sanders & Morley Candy Makers Inc. launched miniature dark chocolate peppermint patties and chocolate covered gummi bears to cater to the demands of customers preferring snacking options that contain high-quality ingredients such as invert sugar, peppermint oil, and egg whites.
- Retail Market Expansion
Wide range of confectionery products are vended through various retail channels such as hypermarkets, supermarkets, convenience stores, discounters, forecourt retailers, and grocery stores. These stores act as global marketing tool, which assists in building an impressive premium image and increase brand exposure of wide variety of confectionery products.
- Growth in Health Awareness
Sugar is considered as the major ingredient responsible for prevalence of obesity and diabetes. Credit Suisse Equity Research conducted a survey and found that 86% of medical professionals link obesity with high sugar intake.
- Fluctuation in cost & availability of raw materials
Primary raw materials utilized in confectionery production are cocoa and sugar. Cocoa prices are volatile and can be influenced by a series of factors, including extreme weather, political instability, and pests & disease. In addition, rise in supply demand gap in chocolate industry has accelerated the prices of cocoa beans. Sugar prices increased due to less production and more demand.
- Growth in demand for sugar-free, organic, and low-calorie products
Consumers have become more conscious about sugar intake and are shifting toward products that offer high nutrition value, thus increasing the demand for sugar-free, organic, and low-calorie products. According to Hudson Institute, Inc., 82% of the sales growth amid Healthy Weight Commitment Foundation member companies such as Kraft Foods and Nestle U.S. was due to lower calorie food products in 2013.
Country Level Analysis
Brazil accounted for the highest share in the LAMEA confectionery market. New product developments, capacity expansions, and flavor differentiation are the key strategies used by Brazil manufacturers to increase their market share. However, growth in awareness among customers toward diet & health relationship, inflation rates, increase in water & electricity tariffs, and high raw material costs hinder the market growth.
Brazil Confectionery Market Revenue, 2014-2022 ($Million)
Key leading players that operate in confectionery industry include Delfi Limited (Singapore), Ezaki Glico Co., Ltd. (Japan), Ferrero SpA (Italy), Lindt & Sprüngli AG (Switzerland), Lotte Confectionery Co. Ltd. (South Korea), Mars, Incorporated (U.S.), Mondelez International, Inc. (U.S.), Nestlé S.A. (Switzerland), The Hershey Company (U.S.), and Wm. Wrigley Jr. Company (U.S.).
Other key market players in the confectionery industry value chain include Arcor Group (Argentina), Brookside Foods Ltd. (Canada), Candy Tops (Pty) Ltd. (South Africa), Cloetta AB (Sweden), Crown Confectionery Co., Ltd. (South Korea), Dongguan Hsu-Fu-Chi Food Co. Ltd. (China), DS Group (India), Grupo Bimbo S.A.B. de C.V (Mexico), HARIBO Dunhills (Pontefract) PLC (UK), Intercontinental Great Brands LLC (U.S.), ITC Limited (India), Kerr Bros. Ltd. (Canada), Meiji Co., Ltd. (Japan), Morinaga & Co., Ltd. (Japan), Orion International Euro, LLC (Russia), Parle Products Pvt. Ltd. (India), Perfetti Van Melle (India), Specialty Food Association, Inc. (U.S.), The Natural Confectionery Co. Pty Ltd. (Australia), and Unilever Plc (UK).
CONFECTIONERY MARKET KEY BENEFITS:
This report provides quantitative and qualitative analyses of the current market trends and estimations from 2014 to 2022, which assist to identify the prevailing market opportunities in different product and application segments.
Confectionery market trends of major countries in each region are mapped according to the estimated revenue.
Top investment pockets which showcase the opportunity in the most lucrative product segment is part of the study.
Focused study of the factors that drive and restrict the growth of confectionery market is provided.
An in-depth analysis of different regulations within the market is provided.
Key manufactures of confectionery products are profiled and their recent developments are listed.
CONFECTIONERY MARKET KEY SEGMENTS:
- Hard-Boiled Sweets
- Caramels & Toffees
- Gums & Jellies
- Medicated Confectionery
- Others (Marshmallows, Nougat, Lollipops, and Liquorice)
- Fine Bakery Wares
- Others (Gums, Snack Products, Brand Ice Creams, and Raw Pastes)
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA