US Confectionery Market by Distribution Channel, Product and Type - Forecast and Analysis 2024-2028

US Confectionery Market Forecast 2024-2028

The US Confectionery Market size is forecast to increase by USD 11.78 billion, at a CAGR of 4.81% between 2023 and 2028. 

The growth of the market is fueled by an increasing number of stores, providing convenience to residential areas and ensuring swift transaction processing. American Licorice Co., a global confectionery player, offers a diverse range of products under various brands such as Frutati, Mecati, RedVines, Sour Punch, and Super Ropes. The company strategically aligns its offerings with consumer trends and consumption forecasts, ensuring that its products cater to evolving preferences and market demands. This proactive approach positions American Licorice Co. to capitalize on emerging opportunities in the confectionery market, enhancing its competitive edge and driving further growth in both offline and online retail channels.

Market: Overview

The market shows an accelerated CAGR during the forecast period.

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 Market Growth Analysis Driver 

Seasonal demand for confectioneries is notably driving the market. There is a growing demand for candies and chocolates in the US, making them staple items during festivals and regular shopping trips for many consumers. These treats are often associated with various events and holidays throughout the year, including Valentine's Day, Halloween, Easter, Thanksgiving, and Christmas, where they play a significant role in celebrations and gifting.

For instance, Halloween's Trick or Treat tradition sees a surge in confectionery sales as kids go door-to-door in search of treats. Some of the seasonal confectionary items include dark premium chocolates as well as luxurious chocolates. With a growing emphasis on healthier snacking, there's an increasing demand for organic chocolate segment and chewing gum, appealing to health-conscious consumers concerned about lifestyle diseases like diabetes and obesity. Manufacturers leverage holiday consumerism by offering seasonal chocolate products and creating enticing packaging to attract consumers during these festive periods, capitalizing on the confectionery items market Hence, such factors are driving the market during the forecast period.

 Market Growth and Trends 

Increasing demand for medicated confectionery is an emerging trend in the market. There has been a sudden surge in consumers opting for supplements in confectionery form. In addition, in the US, many consumers prefer chewable vitamin supplements instead of regular vitamin supplements. Furthermore, in the last few years, consumers have preferred gummies as it is an easier and more palatable method of taking vitamins.

Moreover, chewable medicines are one of the great innovations done in collaboration with sugar confectionery and the healthcare industry. In addition, chewable medicines are convenient for children and adults alike. It is not cumbersome like hard tablets and capsules. In addition, this method of medication is a win-win for children, as they enjoy candies and get their health in order. Hence, such factors are driving the market during the forecast period.

Market Challenge 

Stringent rules and regulations for confectionery products are a major challenge hindering the market. Stringent rules and regulations pose significant challenges for the market in the US, negatively affecting different aspects of production, labeling, and marketing. For example, the Food and Drug Administration (FDA) imposes strict guidelines on ingredients, food additives, and manufacturing processes to ensure consumer safety and product quality.

Moreover, this includes regulations on permissible ingredients, maximum levels of certain additives such as colors and flavors, and labeling requirements for allergens and nutritional information. In addition, the Federal Trade Commission (FTC) oversees advertising and marketing practices, enforcing rules to prevent deceptive or misleading claims about confectionery products. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.

Market Segmentation by Product

The shifting consumer preferences will fuel the chocolate segment which in turn will increase the market. The demand for chocolate confectionery is majorly fuelled by the consumer inclination toward splurging on luxury gourmet chocolates. In addition, a large number of manufacturers in the US offer a variety of luxury chocolates. Moreover, as these chocolates are optimally priced, they are an easy and affordable indulgence for consumers. In addition, along with luxury chocolates, the demand for artisanal chocolates is also increasing. Furthermore, the easy availability of artisanal chocolates has made consumers purchase them more often than before. Chocolate manufacturers across the US are coming up with newer product varieties. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation by Distribution Channel

The offline segment is estimated to witness significant growth during the forecast period. The offline segment comprises hypermarkets, supermarkets, convenience stores, and drug stores. In addition, supermarkets and hypermarkets constitute the most important distribution channel for confectionery in the US. Furthermore, hypermarkets and supermarkets are the main distribution channels for confectionery products in the US, mainly due to the growth of the organized retail sector.

The offline segment was the largest segment and was valued at USD 27.55 billion in 2018.

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Moreover, hypermarkets and supermarkets increasingly stock various chocolates and sugar confectioneries. For instance, Target, Walmart, Sam's Club, Party City, and others stock new varieties of confectioneries. In addition, confectionery products are also purchased from convenience stores, giving in to impulsivity for immediate consumption. Furthermore, the number of convenience stores across the country is on the rise. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering -  Anthony Thomas Candy Co: The company offers confectionery products such as peanut butter egg, maple walnut fudge egg, fruit and nut egg, black jelly beans, pectin jelly beans and others.
• Key Offering - Ashers Chocolate Co: The company offers confectionery products such as Ashers sugar free vanilla caramels, peanut caramel patties, Ashers peanut butter smoothie and others.

The  market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Candyrific, Chocoladefabriken Lindt and Sprungli AG, Elmer Chocolate, Ferrero International S.A., Ford Gum Inc., Georgia NUT CO. Inc., Hormel Foods Corp., Jelly Belly Candy Co., Mars Inc., Mondelez International Inc., Nestle SA, Simply Gum Inc., The Hershey Co., The Kraft Heinz Co., The Madelaine Chocolate Co., Tootsie Roll Industries Inc., Unreal Brands Inc., YumEarth, and Zachary Confections Inc

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Distribution Channel Outlook
  • Offline
  • Online
• Product Outlook
  • Chocolate
  • Sugar confectionery
  • Gums

Market Analyst Overview

The United States (US) confectionery market is witnessing a surge in demand for Chocolate countlines, Boxed chocolate, and Craft chocolates. Consumers are increasingly turning to online channels, with a rise in internet users accessing products through E-retailers, Drug stores & pharmacies, and Food & drinks specialists. The market is also seeing growth in Private-label brands and innovative flavors, catering to the growing Health consciousness among American consumers. Brands like Katjes, SkinnyDipped, and Russell Stover Chocolates are introducing Plant-based confectionery and Fairtrade chocolate bars to meet the demand for sustainable and ethical products.

Moreover, the digital Transformation and Advertising Revenue are key drivers for companies like Walgreens, Kroger, and Tesco, who are leveraging Social media and online channels to promote products like Kinder Bueno Mini and Candy bars. These companies are also focusing on marketing strategies to enhance brand loyalty and boost sales, especially during seasonal peaks such as Valentine's Day, Halloween, Easter, and Christmas. Sustainable practices in ingredient sourcing and cocoa production are also becoming increasingly important, with a focus on Fairtrade certification and cocoa sustainability.

Similarly, Cash & carries and warehouse clubs offer a wide range of products, including flexible packaging and rigid plastics. Paper & board and rigid metal are also commonly found. In the North American confectionery market, countries like Canada and Mexico play significant roles. Almonds are popular, along with immune-boosting and mood-enhancing products. Chocolate & candies and jellies are favorites among American customers, with a rising demand for vegan chocolate confectioneries. Katjes USA and Target Brands, Inc. are key players. Nougat is a sought-after confectionery. Sales promotion often focuses on seasonal products, highlighting innovative product packaging and product labeling. The industry also considers the welfare of cocoa farmers and tracks chocolate consumption trends closely.

Market Scope
Report Coverage	Details
Page number	148
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.81%
Market Growth 2024-2028	USD 11.78 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.07
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	American Licorice Co., Anthony Thomas Candy Co., Ashers Chocolate Co., Candyrific, Chocoladefabriken Lindt and Sprungli AG, Elmer Chocolate, Ferrero International S.A., Ford Gum Inc., Georgia NUT CO. Inc., Hormel Foods Corp., Jelly Belly Candy Co., Mars Inc., Mondelez International Inc., Nestle SA, Simply Gum Inc., The Hershey Co., The Kraft Heinz Co., The Madelaine Chocolate Co., Tootsie Roll Industries Inc., Unreal Brands Inc., YumEarth, and Zachary Confections Inc
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market across US
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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