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The confectionery market size is forecast to increase by USD 64.69 billion at a CAGR of 4.94% between 2023 and 2028. The market is witnessing significant growth, driven by the availability of innovative candies and snack bars in inventive flavors. The rising prominence of online retailing is also a major trend, as consumers increasingly prefer the convenience of ordering from the comfort of their homes. However, the confectionery sector faces supply chain challenges, including maintaining consistency in product quality and ensuring timely delivery. The market is seeing increased competition from key giants and B2C enterprises, leading to a top-down approach to market research using platforms like in-house market research from national statistical offices. Both at-home consumption and out-of-home consumption are on the rise, with supermarkets and hypermarkets, as well as mass merchandisers, offering a convenient buying experience for the working population and children.
Foot-counts in these retail outlets remain a crucial metric for market success.
The market has experienced significant shifts due to various factors. The negative demand shock caused by strict lockdowns and governments' measures to contain the spread of the virus led to a decline in out-of-home consumption. However, the affordability of gums and other confectionery products drove an increase in at-home consumption. Indulgent buying behavior, particularly in the segment of dark premium chocolates, remained strong. B2C enterprises adopted a top-down approach to understand consumer trends through in-house market research and the platform. National statistical offices and international institutions provided valuable data on per capita consumption, consumers' inclination towards confectionery products, and the impact of rising disposable income and rapid urbanization.
Moreover, the continuous development in attractive packaging and the emergence of new markets in emerging economies are expected to drive the growth of the market in the long term. The affordability and accessibility of confectionery products in these markets, coupled with the rising trend of indulgent buying behavior, make them attractive investment opportunities.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the introduction of innovative candies and snack bars, catering to both children and the working population. Organized retailing, including hypermarkets and supermarkets, plays a pivotal role in the distribution of confectionery products. Key players such as Tesco Plc (Tesco), Carrefour Group, and Target Brands Corp. (Target) are expanding their footprint in overseas markets, opening new stores and increasing their product offerings. This top-down approach enables consumers to enjoy a convenient buying experience, with easy access to a wide range of confectionery items. According to the platform, The market size was valued at USD 182.4 billion in 2020 and is projected to grow at a steady pace. In-house market research by national statistical offices and B2C enterprises indicates that both at-home and out-of-home consumption patterns are driving market growth. Consumers prefer the ease and convenience of purchasing confectionery items from supermarkets and hypermarkets, making these channels crucial for market expansion.
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The offline segment was valued at USD 145.55 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European market emerged as the largest global market in 2023, with significant growth anticipated throughout the forecast period. Major European countries, including the UK, Germany, France, Italy, Switzerland, and the Netherlands, are significant contributors to this market's expansion. Key confectionery manufacturers in Europe, such as Ferrero International S.A. And Nestle SA, are spearheading innovation by entering strategic collaborations to develop novel technologies and expand their market presence. For instance, Ferrero International's acquisition of Nestle SA's US confectionery business in 2018 added over 20 renowned confectionery brands to its portfolio. This top-down approach is a common trend among confectionery manufacturers to cater to the evolving preferences of consumers, both children and the working population, in Europe and overseas markets.
Moreover, supermarkets, hypermarkets, and mass merchandisers are key distribution channels, offering a convenient buying experience for consumers. In-house market research and data from national statistical offices, as well as platforms, provide valuable insights into the market trends and consumer behavior. B2C enterprises are focusing on both at-home and out-of-home consumption, creating inventive stuff like snack bars and innovative candies to cater to diverse consumer needs.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Availability of diverse range of products in new flavors is the key driver of the market. The market is significantly influenced by lifestyle diseases such as diabetes, high blood pressure, obesity, and overweight. In response to this trend, there has been a growing demand for reduced sugar intake and sugar-free chocolates. Cocoa, a key raw material in confectionery production, is also experiencing price fluctuations due to surplus or understock situations in the global marketplace. The chocolate confectionery segment, in particular, is witnessing notable growth, especially in developing economies where disposable income is on the rise. Consumers' preference for packaged food items, including confectionery products, is driven by the wide range of options available in the market.
Moreover, children are particularly attracted to the diverse shapes, flavors, and packaging used in the industry. The availability of sugar-free and low-sugar alternatives caters to the health-conscious population while maintaining the appeal of traditional chocolate items.
The rising prominence of online retailing is the upcoming trend in the market. The market is experiencing significant growth in the digital era, with e-commerce sales expanding at a compound annual growth rate (CAGR) of 9% from 2022 to 2027, according to industry reports. This growth is driven by the increasing preference for online shopping and the convenience it offers. Lifestyle diseases such as diabetes, high blood pressure, obesity, and overweight have led consumers to seek reduced sugar intake and sugar-free alternatives, propelling the demand for sugar-free chocolates and other confectioneries. Cocoa, a key raw material, is sourced from developing economies, leading to price fluctuations and potential surplus or understock situations.
Moreover, the chocolate confectionery remains a significant segment, with manufacturers in the global marketplace continually innovating to cater to health-conscious consumers while maintaining the indulgent appeal of chocolate items. Online and e-commerce channels support both business-to-consumer (B2C) and business-to-business (B2B) operations, with the number of transactions and average transaction values continuing to rise. The Westernized food trend, driven by disposable income and changing consumer preferences, further fuels the growth of the market.
Supply chain challenges in confectionery sector is a key challenge affecting the market growth. The market faces distribution challenges in the upcoming years due to various factors. With an increasing awareness of lifestyle diseases such as diabetes, blood pressure, obesity, and overweight, consumers are opting for reduced sugar intake or sugar-free alternatives. This trend is particularly prominent in developing economies where disposable income is on the rise, and Westernized food is becoming more popular. Manufacturers of confectionery items, including chocolate, are responding by producing sugar-free chocolates and using raw materials like cocoa to create healthier options. However, retail stores, such as supermarkets and large chains of discount or convenience stores, which are crucial distribution channels, operate at lower profit margins.
However, this puts pressure on manufacturers regarding prices and margins. Moreover, retailers demand frequent and smaller product deliveries to minimize warehousing costs. Innovative merchandising units, such as movable shelves, are also expected to reduce replenishment costs for stores. Price fluctuations in the global marketplace due to surplus or understock situations in certain regions can further complicate distribution. The chocolate confectionery segment, in particular, is expected to be significantly impacted by these challenges.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
Crown Confectionery Co. Ltd: The company offers confectionery products under its brands Ghirardelli, Lindt, Russell Stover, and Caffarel.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market is experiencing a hectic combination of factors that are shaping its current situation. Indulgent buying behavior, driven by consumers' lifestyles and the growing demand for comfort food, continues to fuel the market. However, negative demand shocks, such as strict lockdowns, restricted public mobility, and workforce shortages, have led to supply chain disruptions and commodity production challenges. Governments' regulations and trade restrictions have added to the complexity, with quarantine periods and price fluctuations causing surplus or understock situations for market players. The retail confectionery sector, including manufacturing facilities, has been significantly impacted. Affordability and healthier snacking trends, driven by lifestyle diseases like diabetes, blood pressure, obesity, and overweight, have led to the growing demand for sugar-free chocolates, organic snacks, and healthier alternatives.
Moreover, the youngsters and working populations are increasingly opting for convenience snacks, daily diet essentials, and chocolate snacks. The chocolate confectionery segment, including chocolate bars, dark chocolate, and innovative candies, is witnessing continuous development, with key giants and B2C enterprises investing in attractive packaging, promotional activity, and social media marketing. The global marketplace is witnessing major driving factors like rising disposable income, rapid urbanization, and consumer behavior influenced by dietary habits and natural ingredients. The sugar confectionery segment, including gums, sweets, toffee, marshmallow, cookies, and ice cream, is also evolving, with consumers' inclination towards organic chocolate, sugar-free confectionery products, and other inventive stuff.
Similarly, the market situation is further influenced by age groups, lifestyle, middle-class population, offline channel, internet penetration rate, and the growing e-commerce sector. In conclusion, the market is undergoing a transformative phase, shaped by various factors, including consumer behavior, dietary habits, government guidelines, and raw material availability. Market players must navigate this hectic combination of factors to maintain quality of products, manage price fluctuations, and cater to the evolving demands of consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.94% |
Market growth 2024-2028 |
USD 64.69 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.2 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 30% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Barry Callebaut AG, Arcor Group, Crown Confectionery Co. Ltd, Chocoladefabriken Lindt and Sprungli AG, Delfi Ltd., Ezaki Glico Co. Ltd., Ferrero International S.A., Foleys Candies LP, Fuji Oil Co. Ltd., HARIBO GmbH and Co. KG, Mars Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Nestle SA, Parle Products Pvt. Ltd., Perfetti Van Melle Group BV, The Hershey Co., Unilever PLC, United Confectionery Sdn Bhd, and Yildiz Holding AS |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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