Global confectionery sector set for growth to $421 billion, despite market disruption

The global confectionery market is projected to deliver a renewed upturn in growth into the next decade, reaching $421 billion by 2031, after reaching $298bn in 2022, despite a number of supply chain challenges, writes Neill Barston.

Studies from the Straits Research group have asserted that several key factors are behind the anticipated surge in market value including levels of innovation, processing capacity and packaging advances that have enriched the overall category.

According to the international organisation’s findings, growth is projected to be at a CAGR rate of 3.9% during its forecast period of 2023 to 2031 – which comes in spite of much publicised analysis of tests within the market – including the ongoing cost of living crisis denting consumer confidence, as well as inflation impacting significantly on ingredients costs, including sugar and cocoa.

As recently reported by Confectionery Production, the US confectionery sector, which continues to set the pace for many markets around the world, posted increased financial fortunes, clocking in at $48 billion for the region alone in the past year, which was largely attributed to inflationary pressures.

However, the new research has observed that consumer health awareness and diverse consumer eating habits and preferences, are all critical to driving innovation.

Furthermore, the research group noted that manufacturers expand their product ranges through novel means including delivering functional ingredients, tropical fruit, organic herbal fillings, and nut-based and exotic flavours into product formulations.

In addition, innovative packaging techniques, such as appealing jars, family-sized packs, resalable packaging, and bags & tubs, also increase product sales, as well as noting the development of new ranges such as Tic Tac Gum as being instrumental, plus innovations within confectionery such as Barry Callebaut’s creation of ruby, the ‘fourth type of chocolate’ within the past six years that has increasingly found a market foothold across categories.

Furthermore, the report noted the emergence of better-for-you options, as well as blending of liquid and solid flavours, olfactory sensations, and energy boosts in confectionery goods support the growth and expansion of the worldwide market.

Significantly, the organisation’s study also noted that the¬†¬†organic and premium candy megatrend has attracted a broader spectrum of consumers.

According to Straits findings, most consumers are ready to pay a premium for organic chocolates, believing they offer additional benefits, in addition to organic chocolates gaining widespread consumer appreciation due to their high antioxidant content.

Moreover, the organisation noted that dark and organic sweets market is expanding rapidly owing to perceived health benefits of dark chocolate and its natural ingredients. For instance, YumEarth’s USDA-certified Organic Candy Corn was one of the most popular candies due to consumers’ strong demand.

There is also another factor in the mix, notably that younger generations, namely millennial consumers driving demand for organic sweets because they are worried about the health impacts of pesticides, hormones, and antibiotics and are knowledgeable about food.

 

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