Global sugar confectionery markets projected to increase over the next five years
Sales of sugar confectionery, including toffee, boiled sweets and marshmallow, are projected to reach $69.5 billion by 2026, according to new research published by Polaris Market Research.
As the organisation revealed to Confectionery Production, in 2017, the offline stores segment dominated the global sugar confectionery industry, in terms of revenue, with overall figures for the segment standing at $48.2 billion in sales, and producing annual growth rates of 4.3%.
However, as global organisations including the International Monetary Fund have warned, global economies face a period of recession surrounding the effects of the present coronavirus pandemic, so the scale of the impact upon the sector, and wider food and drink markets is as yet unknown.
According to the research from Polaris, Asia-Pacific is expected to grow at the highest rate during the forecast period, driven by a significant increase in population, changing eating habits, and rising disposable income.
Other factors influencing the global sugar confectionery industry include growing inclination towards gifting of confectionery products, and investments by market players in promotional activities, advertising campaigns, and social media marketing. Improvement in lifestyle due to rise in income level, especially in the developing countries of Asia-Pacific, further fuels the market growth.
Factors such as increase in per capita income, changes in consumer behaviour, and rising trend of e-commerce are expected to accelerate the growth of sugar confectionery industry in the coming years. However, increasing health awareness, rising cases of obesity related diseases, and shift in trend towards consumption of low calorie food are expected to restrict the growth of the sugar confectionery industry. Increasing demand from developing nations, rising demand for organic and premium chocolate products, and growing trend of gifting confectionery products are factors expected provide numerous growth opportunities to the market players during the forecast period.
Asia-Pacific is expected to grow at the highest rate during the forecast period. The increasing population in the region coupled with rising disposable income drives the market growth in the region. The increasing demand of Sugar Confectionery in the region is expected to be driven by growth in countries such as China, Japan, and India. The development in retail market, stable economic growth, and growing trend of using sugar confectionery as gifts supports the market growth in the region.
The well-known companies profiled in the sugar confectionery market analysis report include Nestle SA, Mondelez International, Perfetti Van Meller, Lindt & Sprungli, Hershey Food Corp, Ferrero Group, Mars Incorporated, Kraft Foods Co, WM Wrigley JR Company, and Haribo among others.
These companies are consistently launching new products to enhance their offerings in the global sugar confectionery industry. With change in lifestyles, companies are innovating and introducing new products to cater the growing needs of the customers. Leading companies are also acquiring other companies, and enhancing their product offerings to improve their market reach. Acquisitions enable key players to increase their market potential in terms of geographic expansion and expansion of customer base.