CAGR: 5%Current Market Size: USD 300 BillionFastest Growing Region: APAC
Largest Market: EuropeProjection Time: 2022-2029Base Year: 2021
The Global Confectionery market is expected to grow from USD 300 billion in 2021 to USD 443.23 billion by 2029, at a CAGR of 5% during the Projection period 2022-2029. The growth of this market is mainly driven owing to the developing food and beverage industry.
Making confections, which are foods high in sugar and carbs, is the craft of confectionery. Definitions are hard to be precise. Bakers' confections and sugar confections are the two main and broadly overlapping categories into which confectionery is often separated. The job of confectioner includes the types of cuisine that are done by both the confiseur and the French patissier (sugar worker). The main components of bakers' confectionery, often known as flour confections, are sweet pastries, cakes, and similar baked items. Baker's sweets is a subset of goods created by a baker that does not include regular breads. Candy (also known as sweets, which is short for sweetmeats in many English-speaking nations), candied nuts, chocolates, chewing gum, bubble gum, pastillage, and other confections largely made of sugar are examples of sugar confectionery. In some circumstances, sugar-free variations of sugar confections as well as chocolate confections (confections composed of chocolate) are classified as independent categories. For some of the most well-known types of sugar confectionery, the words candy (in Canada and the US), sweets (in the UK, Ireland, and other countries), and lollies (in Australia and New Zealand), are frequently used. Additionally, there are rich historical records and specialized training programs in the confectionery industry. Traditional sweets have been consumed from ancient times and have persisted into the contemporary period via the Middle Ages.
Sample Request: - Global Confectionery Market
Market Dynamics:
Drivers:
Due to growing awareness of the advantages of consuming low-calorie foods, food items including sugar-free candies and chocolates are predicted to significantly boost the growth of the confectionery market throughout the Projection period. Additionally, people are increasingly choosing to consume sugar-free goods. Sweeteners may be used to create chocolates, candies, or gums without added sugar. Global producers will need to start employing sweeteners instead of sugars in their new products. The global market for confectionery has changed its ingredients as a result of the health trend, and the sector has also adopted new pack sizing techniques.
Restraints:
Due to growing knowledge of the negative effects of ingesting foods with high sugar content, the global confectionery market will experience a reduction in growth. Additionally, the industry's growth throughout the anticipated term would be hampered by consumer buying habits that are diverse. The rise in calories and fat content, as well as the danger of obesity and diabetes, could limit market expansion throughout the Projection period.
Opportunities:
Due to the growing customer trend for healthier snacking, along with convenience and flavor, large corporations have changed their key business strategies. Since organic chocolate contains no additional chemicals that can have serious health effects, demand for it is on the rise right now. As consumers become more concerned with their health and wellness, they are choosing chocolates that are vegan, organic, gluten-free, and sugar-free. As a result, numerous large confectionery firms are producing the newest, most inventively flavored chocolates in packaging that enables consumers to taste a tiny amount while saving the remainder for later. The demand for sweets made with organic ingredients is anticipated to rise along with the exports of organic chocolate.
Challenges:
Sugar and cocoa are two crucial ingredients that are mostly used in the production of confections all over the world. Since their production and demand are cyclical in nature, sugar and cocoa prices have fluctuated during the past few years. Unfavorable weather conditions, crop diseases, labor availability, stock ratios, and other economic factors that impede the smooth flow of their demand and supply in the market have an impact on cocoa and sugar yields. Because of this, the average annual price of raw materials ranges from low to high, resulting in excess or understock when producing sugar and chocolate items for the market. Therefore, it is anticipated that overall demand in the next years will be muted by changes in raw material prices.
Segmentation Analysis:
The global confectionery market has been segmented based on product type, distribution channel, and regions.
By Product Type
The product type segment is chocolate, cookies, ice cream, and sugar confectionery. The chocolate segment led the largest share of the confectionery market with a market share of around 40% in 2021. Market expansion is accelerated by growing consumer demand for the consumption of chocolate goods across all age groups in order to satiate their taste buds. In addition, compared to other items sold worldwide, chocolate is the confectionary that people consume the most of per capita. Furthermore, the market is expected to rise throughout the Projection period due to rising consumer demand for organic and premium chocolate products.
By Distribution channel
The distribution channel segment includes offline and online. The offline channels segment led the confectionery market with a market share of around 66% in 2021. For the purchase of consumer goods, groceries, confectionary items like chocolate, and other things where they can physically inspect the product quality, consumers are increasingly choosing offline channels. Furthermore, the segment's expansion is projected to be fueled by consumers' ease of access to and browsing of a variety of confectionery products in stores. Due to increased consumer demand for chocolate, producers are also opening new stores in malls, which will help the offline segment develop over the coming years.
Global Confectionery Market- Sales Analysis.
The sale of the confectionary market expanded at a CAGR of 3.4% from 2015 to 2021.
Market expansion is anticipated to be aided by the expanding food and beverage sector globally and the rising per capita consumption of these goods. Additionally, the industry is primarily driven by customers' propensity to present these products, as well as increased disposable income and global urbanization. Additionally, the market for confectionary items in emerging nations is growing due to attractive packaging and ongoing development. The market is expanding as a result of consumers' constantly changing eating habits and consumer behavior. In recent years, there has been an increase in the popularity of consumer buying patterns for confectionary items created with natural ingredients. Döhler estimates that about 50% of confectionary product requests from consumers are for healthier alternatives with at least 60% natural ingredients.
Additionally, during the course of the projected period, there will be a large increase in demand for sugar-free confectionary items due to their rising popularity and demand in developed nations. Confectionery product makers provide a variety of goods including chocolate, chewing gum, candies, toffee, marshmallows, cookies, ice cream, and other items. Additionally, market expansion is being accelerated by the leading players' increasing investments in advertising campaigns, promotional activities, and social media marketing.
Thus, owing to the aforementioned factors, the global Confectionery Market is expected to grow at a CAGR of 5% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analyzed for the confectionery market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Europe region dominated the confectionery market and held a 40% share of the market revenue in 2021.
Global Confectionery Market- Country Analysis:
Germany's confectionery market size was valued at USD 31.92 billion in 2021 and is expected to reach USD 44.36 billion by 2029, at a CAGR of 4.2% from 2022 to 2029. White chocolates and dark chocolates are among the items available on the German chocolate market. Growing consumer knowledge of the health advantages of ingredients used to flavor chocolate, due to the presence of flavonoids, is a significant factor driving the German chocolate market. Additionally, the many chocolate kinds include large amounts of fiber, iron, magnesium, copper, and manganese. Additionally, the business of German chocolate has benefited greatly from the growing popularity of pancakes, doughnuts, and chocolate cookies.
China’s confectionery market size was valued at USD 28.29 billion in 2021 and is expected to reach USD 38.12 billion by 2029, at a CAGR of 3.8% from 2022 to 2029. The demand for the product is also being driven by the increasing popularity of sugar-free confections due to the growing health concerns around cardiovascular illnesses, obesity, diabetes, etc. In addition, the development of confectionary items with clean labels, no animal testing, veganism, organic farming, and sustainably produced ingredients is boosting the market's expansion. Over the foreseeable period, the China confectionery market is anticipated to be driven by a number of additional factors, including ongoing improvements in ambient storage conditions and the introduction of anti-microbial packaging solutions.
India's confectionery market size was valued at USD 23.52 billion in 2021 and is expected to reach USD 30.26 billion by 2029, at a CAGR of 3.2% from 2022 to 2029. The Indian confectionery industry is primarily being driven by the new practice of giving confectionary products as gifts, particularly during holidays or special occasions like birthdays, anniversaries, social gatherings, etc. Other significant factors boosting the sales of confectionery goods in the nation include rising rates of urbanization, rising consumer living standards, and rising demand of imported chocolates and sweets. In addition, a number of significant businesses are launching limited-edition, high-end confectionary items that are enriched with superior nuts, grains, and cereals. A bright outlook for the local market is being created by this along with rising consumer spending per capita.
Key Industry Players Analysis:
To increase their market position in the global confectionery business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
5% |
Market Size |
300 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By Distribution Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Mondelez International, Inc., Nestlé S.A., Perfetti Van Melle, Meiji Co., Ltd., The Hershey Company, Ferrero Group, Mars, Incorporated, Pladis, Chocoladefabriken Lindt & Sprüngli AG, Ezaki Glico Co., Ltd., Haribo GmbH & Co. K.G., and Grupo Arcor. |
By Product Type |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Confectionery Market by Product Type:
Global Confectionery Market by Distribution Channel:
Global Confectionery Market by Region:
Global confectionery market’s size in 2021 was USD USD 300 billion in 2021.
The Germany Confectionery market is likely to expand at a CAGR of 4.2%.
The market is being driven as more flavors in chocolates, pastries, and more are coming.
Fluctuations in the price of raw materials, growing health concerns, and others are some of the factors hampering the market growth.
Political Factors- Business organizations need political stability because it affects investor and customer trust, which has a significant impact on the economy. High levels of political unrest have detrimental effects on consumer spending, company investment, and economic expansion. Political instability is currently evident in the region where the Confectionery has an active presence as a result of internal and external conflicts. The corporation may be unable to meet its growth goals if management is unable to comprehend and manage the current political upheaval, and it may be reluctant to spend additional funds.
Economical Factors- High financial market efficiency facilitates capital accumulation and the production of goods and services by sharing a strong positive relationship with overall economic growth. Confectionery must therefore pick nations with extremely effective financial markets so that it may quickly amass financial and human resources. Confectionery may effectively stay one step ahead of the competition by keeping an eye on the efficiency of the financial market. When deciding whether to expand internationally, confectionery should consider the economic growth rates of the various nations. More options to pursue long-term growth goals exist in nations with high economic growth rates. Consumer spending becomes more cautious when the economy is growing slowly, which has a direct impact on the expansion of the Confectionery's revenue.
Social Factor- Consumption patterns and economic issues are closely related. Confectionery benefits from exciting growth opportunities when consumers have more disposable income and are willing to spend more on goods and services to improve their lifestyles. This is because it is simpler to introduce new goods and services to these customers, and the likelihood of revenue growth is also higher. Confectionery must closely examine the consumption/spending trends and tastes of modern consumers, who are increasingly demanding, in order to modify its marketing mix methods. Understanding whether consumption is motivated by hedonic or utilitarian goals is also crucial for Confectionery. The degree of ethnocentrism is a significant customer behavior factor that might impact the Confectionery's performance.
Technological Factors- The velocity and progress of technological innovation can have an impact on the market and industry as a whole. Confectionery will be able to comprehend the rate of new product creation, the length of the product life cycle, and the unique characteristics that consumers choose by researching the upcoming technological innovation trends. Confectionery can determine whether switching to e-commerce will be more advantageous than establishing a physical location by doing research on consumers' sentiments toward cutting-edge digital technology. Confectionery may be forced to switch from manual to automated processes if competitors engage in automation technology to cut costs, especially if the general populace of that society is tech-savvy. Confectionery can improve user experience, achieve operational efficiencies, and establish itself as an innovative company by making the correct technical investments.
Environmental Factors- Businesses are under pressure to lessen environmental harm due to strict environmental legislation in many different countries. In response, Confectionery should adopt ethical production methods, promote ethical consumption among its target market, work to enhance its brand's sustainability reputation, and ensure complete adherence to local and international environmental regulations because failure to do so may result in severe, reputation-damaging criticism from relevant stakeholders. The development of renewable technology to lessen reliance on natural resources has become a strong trend in many industries. To capitalise on this environmental trend, Confectionery should assess how well a nation's technology infrastructure supports the usage of renewable technologies. Governments in certain parts of the world provide enticing incentives for the use of renewable energy sources.
Legal Factors- A broad category of laws protecting employees' rights, including those to a fair salary, equality, equity, inclusion, fairness, and their physical and mental safety, is known as employment law. While some nations lack efficient enforcement of employment laws, others have harsh penalties for violating any of the specified rights of employees. Confectionery should make sure that the working environment is safe when entering or operating in certain nations. There must be appropriate systems in place to prevent both direct and indirect discrimination. In the continuous competition for talent, Confectionery can benefit from effective compliance with employment rules by improving its employer brand image, which is crucial for luring and keeping top talent in the market.
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