Confectionery Market Size, Share, Regional Growth & Industry Outlook, 2032

Market Overview

The global confectionery market size was valued at USD 206.97 billion in 2023 and is projected to grow from USD 213.74 billion in 2024 to USD 278.36 billion by 2032, exhibiting a CAGR of 3.36% during the forecast period. Europe dominated the confectionery market with a market share of 38.38% in 2023. The market has been significantly impacted by the COVID-19 pandemic, which caused a decline in 2020 but is now returning to pre-pandemic growth levels. A key driver for the market is the increasing consumer demand for premium and artisanal products, particularly in developed regions. This trend is also growing rapidly in developing regions due to rising disposable incomes and western influence.

List of Key Market Players:

• Barry Callebaut (Zürich, Switzerland)

• Ferrero SpA (Alba, Italy)

• Nestle S.A. (Vevey, Switzerland)

• Mondelez International, Inc. (Illinois, U.S.)

• Meiji Holdings Co., Ltd. (Tokyo, Japan)

• The Hershey Company (Pennsylvania, U.S.)

• Chocoladefabriken Lindt & Sprungli AG (Zürich, Switzerland)

• Ezaki Glico Co., Ltd. (Osaka, Japan)

• HARIBO GmbH & Co. KG (Bonn, Germany)

• Pladis Global (London, U.K.)

Segmentation

By Type, Chocolate Confectionery to be the Leading SegmentOn the basis of type, the market is divided into chocolate, sugar, and gums. The chocolate confectionery segment is the global leader and shows immense growth potential, particularly in developing economies, driven by rising disposable income and westernization. The sugar and gums segment also holds a major share, propelled by innovations in candies and snack bars that appeal to children, young adults, and the working population.

By Product Range, Premium Variant to be Leading SegmentThe premium product range is showing significant growth and is a key driver for the market. This trend is driven by consumers in developed regions demanding high-quality, artisanal products and is rapidly growing in developing regions due to rising incomes and international trade. Manufacturers are launching premium lines with different flavors and ingredients to meet this demand.

By Distribution Channel, Mass Merchandisers to be the Major Distribution ChannelMass merchandisers, such as supermarkets and hypermarkets, are the leading sales channel and are anticipated to dominate the market share. These channels offer consumers a wide product range, freedom of selection, and the convenience of one-stop shopping. However, manufacturers are also focusing on smaller, convenient packs to promote sales through other channels like convenience stores, departmental stores, and online retail.

Source: https://www.fortunebusinessinsights.com/industry-reports/confectionery-market-100542

Report Coverage

The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all the segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key confectionery market trends.

Drivers & Restraints

Market Growth is driven by Demand for Convenient and Healthier OptionsOne of the primary drivers is the rising emergence of on-the-go snacking due to consumers' hectic lifestyles. Chocolate bars and convenient packs offer a quick and easy food option. Additionally, there is a growing consumer inclination towards healthier choices, fueling demand for organic, low-calorie, and sugar-free chocolates and candies. The perceived health benefits of dark chocolate, such as its antioxidant properties, are also propelling market growth.

Fluctuations in Raw Material Prices May Impede GrowthThe market's performance is restrained by the price volatility of essential raw materials like cocoa and sugar. Production yields can be affected by unfavorable weather, crop diseases, and economic factors, leading to fluctuations in supply and demand. This price instability can hamper production and dampen overall market growth.

Regional Insights

Europe Held the Dominant Position in the MarketEurope holds the largest market share, valued at USD 73.41 billion in 2020. This dominance is due to strong consumer preference for premium and quality chocolates, driven by taste preferences and permissive eating habits. Countries like the U.K., Germany, and Austria have consumption rates up to five times the global average.

Asia Pacific is the second-largest market and holds immense growth potential. The market is fueled by rapid urbanization, rising disposable incomes, and the popularity of convenient consumer packs among a young and dynamic population.

North America is witnessing significant growth, with consumers increasingly viewing confectionery as a comfort food. The trend of between-meal snacking and a willingness to spend on artisanal products, especially in the U.S., supports market expansion.

South America is expected to experience slower growth due to economic constraints and health concerns. However, chocolate is still preferred over sugar confectionery in the region due to its perception as a premium product.

Competitive Landscape

Companies Focus on Strengthening Distribution to Remain CompetitiveThe market is highly consolidated, with a few key players like Barry Callebaut, Ferrero SpA, and Nestle S.A. dominating. These prominent companies are focusing on reinforcing their distribution networks, implementing cost-reduction strategies, and ensuring strategic product placement in the global marketplace to maintain their competitive edge.

Notable Industry Development

• May 2023: Ferrero North America announced new products and seasonal lines, including Kinder Chocolate, at the Sweets & Snacks Expo in Chicago.

• March 2023: The Hershey Company launched a new plant-based product under its Reese's brand to cater to the growing vegan consumer base.

• November 2022: Barry Callebaut announced the launch of a new factory in India, intended to be its largest chocolate production facility in the Asia Pacific region.