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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. One of the key factors driving market growth and trends is the rising purchasing power of individuals. Purchasing power, an indicator of the current market condition, is increasing notably in developing countries like India, China, Brazil, Indonesia, Russia, and South Africa, leading to expanded consumer expenditure. This shift is shaping consumer spending on food, particularly favoring at-home consumption. Despite the negative demand shock caused by strict lockdowns, there's a surge in demand for luxurious and premium chocolates.
Additionally, there's a notable shift from out-of-home consumption to private household spending on food, driven by consumers' inclination for affordability and indulgent buying behavior. Moreover, rapid urbanization in emerging economies is fostering market growth in the food industry through continuous development and attractive packaging. This trend is further supported by rising disposable income and major driving factors identified by in-house market research and data from national statistical offices and international institutions like the Statista platform.
The market shows an accelerated CAGR during the forecast period.
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The increasing urbanization will fuel the chocolate segment which in turn increases the market growth. The global chocolate market is mature, and to keep up with changing consumer preferences, companies are introducing new products with unusual flavors like hibiscus, lavender, ginger, and alcohol. In addition, premium-positioned organic chocolates are becoming increasingly popular. In addition, reduced sugar chocolate variants, such as dark chocolate, have seen a significant increase in demand as consumers become more aware of the health benefits. Moreover, the growth in the segment is expected to be driven by the growth in demand for organic, vegan, sugar-free, and gluten-free chocolates. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. The different types of offline channels are hypermarkets, supermarkets, and grocery and convenience stores. In addition, organized retailing, which includes hypermarkets and supermarkets as two of the major offline distribution channels of confectionery, eases the purchasing process for consumers. Furthermore, it enables them to choose from a diverse range of confectionery.
The offline segment was the largest segment and was valued at USD 145.55 billion in 2018.
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Moreover, Tesco Plc (Tesco), Carrefour Group, and Target Brands Corp. (Target) are some of the major hypermarkets and supermarkets that offer various brands of confectionery. In addition, one of the major factors expected to drive the growth of the segment is the expansion of hypermarkets and supermarkets worldwide. For instance, in 2022, Tesco, one of the leading supermarkets based in the UK, opened 650-750 convenience stores in Thailand. Furthermore, as these retailers have a global presence, they help improve the visibility of vendor products and increase the demand for such products. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Europe is estimated to contribute 30% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The UK, Germany, France, Italy, Switzerland, the Netherlands, and Spain are some of the prominent markets in the region. In addition, major confectionery manufacturers in Europe have undertaken strategic collaborations to achieve novel technological innovations and acquire a prominent position in the marketplace. For example, in 2018, Ferrero International S.A., an Italy-based manufacturer of branded chocolate and confectionery, announced that it had acquired Nestle SA confectionery business in the US, which includes more than 20 brands of confectionery products. Moreover, the purpose of this acquisition is to expand the geographical reach of Ferrero's premium confectioneries. In addition, the increased penetration of small family-run bakeries and restaurants has significantly contributed to the increased consumption of confectionery items in the region. Hence, such factors are driving the market growth in Europe during the forecast period.
The Confectionery Market experiences growth driven by the rising purchasing power of individuals, leading to increased consumption of luxurious and premium chocolates and gums. A notable trend in this market is the rising demand for organic chocolate, reflecting consumers' inclination towards healthier and sustainable options. However, the industry faces challenges such as fluctuations in the prices of confectionery raw materials, which may impact affordability and indulgent buying behavior.
Amidst the global economy facing negative demand shocks and strict lockdowns imposed by governments, both at-home and out-of-home consumption patterns undergo shifts, influencing consumer spending on food. To navigate these challenges, B2C enterprises in the food industry adopt a top-down approach, leveraging insights from platforms like Statista and in-house market research alongside data from national statistical offices and international institutions. With rising disposable income and rapid urbanization, the confectionery market continues to grow, driven by major driving factors, including changing consumer preferences and per capita consumption patterns.
One of the key factors driving the market growth is the rising purchasing power of individuals. Purchasing power can be referred to as the number of goods or services that a certain amount of money can buy and can be an indicator of the current market condition. In addition, rising consumer purchasing power in developing countries like India, China, Brazil, Indonesia, Russia, and South Africa has brought about an expansion of the middle-class population segment, coupled with a rise in consumer expenditure and a shift in preferences, particularly in terms of food choices.
Moreover, in line with this, consumers in these and other developing countries now have the financial capabilities to buy non-essential items, like convenience and RTE packaged food products, which include confectionery. In addition, the rising purchasing power of consumers in these developing economies is an encouraging sign for vendors in the global market. Furthermore, the infrastructure in these countries has significantly developed due to the rapid urbanization rate. Therefore, this has led to the emergence of various organized retailing outlets, which have made confectionery products easily accessible to consumers. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the rising demand for organic chocolate. Organic chocolate refers to chocolate that has been certified as organic. In addition, conventional chocolate uses cacao beans and sugar that are cultivated using chemical fertilizers, pesticides, herbicides, and others.
Moreover, the demand for healthy snacking has increased over the past few years because of rising health awareness among the global population. In addition, the demand for healthier snacking has led to the popularity of organic snacks and sugar and chocolate products. Furthermore, the increasing appeal of snacks that are healthier, tastier, and more convenient to eat will increase the consumption of organic chocolates. Hence, such factors are driving the market during the forecast period.
Fluctuations in prices of confectionery raw materials are one of the key challenges hindering market growth. Raw materials, including sugar, low-calorie sugar, cocoa liqueur, and other additives, are used in the production of confectionery products. However, volatility in the prices of these raw materials may also impact the profit margins of market vendors in a negative way.
Moreover, Cocoa, the main component in chocolate manufacturing, has witnessed fluctuations in prices during the past decade, which has made the cost of chocolate production volatile. In addition, as chocolate is the largest-selling confectionery product, accounting for nearly 55% of the global market, volatility in cocoa prices has slowed down the growth of the market. Furthermore, Cocoa prices largely depend on growing conditions and can, therefore, fluctuate significantly on a monthly basis. Hence, such factors are hindering the market during the forecast period.
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.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Barry Callebaut 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
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.
The Confectionery Market experienced a negative demand shock due to strict lockdowns during the pandemic, affecting both at-home and out-of-home consumption. Despite this, luxurious and premium chocolates maintained their appeal, especially dark premium chocolates, as consumers displayed indulgent buying behavior seeking affordable indulgences amidst uncertainties in the global economy.
Market growth analysis conducted through in-house market research and data from national statistical offices and international institutions revealed continuous development in the food industry, particularly in the confectionery sector. Consumers' inclination towards confectionery products is driven by rising disposable income and per capita consumption.
B2C enterprises capitalize on this trend by offering attractive packaging to enhance product appeal. The Statista platform facilitates top-down approaches to understanding market dynamics and major driving factors influencing consumer behavior. Emerging economies present significant opportunities for growth in the food and beverage industry, encouraging private household spending on food.
The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Confectionery 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, 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 |
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