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Sugar Confectionery Market size is anticipated to expand significantly through 2023-2032, due to an upsurge in demand for convenience foods and snacks. Since the onset of the coronavirus pandemic, consumer propensity toward packaged foods has considerably increased. Likewise, the growing global population and rising per capita incomes will boost the consumption of sugar confectionery items.
As per data from Eurostat, between 2013 and 2021, household per capita disposable incomes rose by 14% rise in the European Union. Moreover, the changing lifestyles and gradual shift away from traditional sweets are also serving as pivotal factors bolstering the development of sugar confectionery brands across the globe. Confections refer to a class of foods or sweets that include chocolates, gummies, marshmallows, lollipops, and pastries. Sugar confectioneries mainly consist of natural or artificial sugar as key ingredients.
With the growing preference for plant-based food among consumers and the strong presence of food manufacturers offering natural confectionery solutions, the industry will witness appreciable gains over the foreseeable future. The high obesity burden may, however, assert a negative impact on sugar confectionery sales. Based on the WHO’s data, nearly 167 million children and adults will be obese or overweight by 2025, thereby limiting sugar consumption and product sales.
Sugar confectionery market size from the hard-boiled sweets segment is projected to depict a sizeable growth rate over 2023-2032, on account of the rising emphasis on addressing the challenges of creating on-trend confections. Food companies have been developing low-sugar, hard-boiled candies that are hard-shine and exceptionally shelf-stable. With the burgeoning consumer demand for low-sugar products, the intake of hard-boiled confectioneries such as caramel, toffee, hard gums, and fruit drops will further rise worldwide.
The store-based distribution channel segment will hold a considerable share of the sugar confectionery market over the years ahead, due to the expansion of convenience store chains. According to a Retail Tenant Expansion Report from Stan Johnson Company, these stores have been reaping the benefits of the COVID-19 pandemic-induced shift in consumer behavior. In the U.S., several chains have been targeting expansions to meet the growing demand for snack foods. Such factors are likely to improve consumer access to stores and amplify the sales of sugar-boiled confectionery products.
North America is set to emerge as a prominent revenue hub for the sugar confectionery industry between 2023 and 2032, owing to the rising disposable income and expanding youth population. As per the U.S. Census Bureau estimates, in 2021, there were over 43 million youth aged 10 to 19 years, representing 13% of the total population in the country. These factors, along with the strong focus on retail chain expansion projects, will escalate the manufacturing of sugar confectioneries to cater to regional consumers.
The competitive landscape of the global sugar confectionery market consists of companies such as HARIBO of America, Inc., Lindt & Sprüngli AG, Jelly Belly Candy Company, The Kraft Heinz Company, Nestlé S.A, Specialty Food Association, Inc., The Hershey Company (Hershey Trust Company), Lotte Confectionery, Perfetti Van Melle, and Ferrero SpA, among others. These market players are incorporating strategies such as business expansions and product launches to reinforce their market presence.
For instance, in June 2021, Haribo invested over USD 30.9 million to install new technology at its confectionery manufacturing site in West Yorkshire, in the UK. This initiative was taken to boost capacity, reduce costs, improve efficiency, and reformulate its existing products.
Also, in February 2022, Lindt unveiled three vegan chocolate bars in Canada and the UK, replacing dairy milk with almond paste and gluten-free oat milk powder. This product range expansion strategy will enable the company to establish a strong footprint in the global market.
The increasing trend of low-calorie food consumption is encouraging food companies to introduce products with low cholesterol and fat content. In May 2022, for example, Mars announced the launch of a range of chocolate bars that comprised more than 75% fruits and nuts to reduce the calorie of sugar-laden snacks. The increased development of products with low-calorie value to address changing consumer preferences will present growth prospects for the sugar confectionery market over the estimated timeline.