According to current statistics, rising customer demand for sugar-free chocolates increases the confectioneries market demand with a CAGR of 4.6% from 2023 to 2033.
In 2023, the worldwide confectioneries industry is expected to be worth USD301bn. Confectionery sales are expected to reach USD474bn by 2033, growing at a CAGR of 4.6% during the next ten years, according to Fact.MR research.
Any type of sweet treat is a popular food product all around the world. Confectioneries are sweets with a high carbohydrate and sugar content. These include chocolates, cookies, candies, and mints.
People around the world consume various confectioneries on special occasions, including anniversaries, birthdays, and even festivals such as Christmas, Halloween, and others. Halloween is a one-of-a-kind occasion that is known for its tradition, in which children usually dress up in different costumes and go from one door to another to collect various types of candies.
High Demand for On-the-Go Snacks
Rising modernization along with a hectic combination of personal & professional obligations are some key factors that are likely to trigger demand for convenience snacks in daily diet. The busy lives of consumers do not allow them to spend a significant time cooking as well as dining out at the time of their working hours. These factors can lead people to look for quick-to-eat and easily-prepared food products.
Rapidly Rising Demand for Sugar-free Chocolates
Improvement in the lifestyle of people around the world is expected to bring noticeable changes in the health and diet of human beings. These changes can result in the proliferation of lifestyle diseases including blood pressure, diabetes, etc. Being overweight, obesity and other related diseases are some serious concerns that are likely to bring challenges to the sustainability of our healthcare system.
Fluctuation in Raw Material Prices Can Hamper Market Performance
Sugar and cocoa are the essential raw materials that are used to produce confectioneries around the world. The price of cocoa and sugar has experienced fluctuations due to variations in their demand and supply. Further, the yield of cocoa and sugar is impacted due to unfavorable weather conditions, stock ratio, labor availability, crop diseases, and other economic factors.
The Use of Organic Ingredients for Product Development can Generate Growth Opportunities
Confectionery products are used at an increased rate irrespective of geographical location. So, the manufacturers of confectionery products are incorporating various new innovative strategies for product development that include the use of natural and organic ingredients for product development.
Europe Leads Due to High Popularity and Demand for Chocolate Confectioneries
Among other regional areas, the market in Europe is likely to make the largest contribution to global industry. The regional market held more than 35% market share in 2022-end. These growth opportunities in the regional market are attributed to the rising popularity along with the demand for chocolate confectionery products.
People in recent years have given preference to value-added natural ingredients and organic products. Furthermore, constant changes in consumer lifestyles, as well as eating habits, are contributing to regional market growth.
Organic Chocolates a Hit in Germany
The growth in the market is attributed to the rising awareness related to the side effects of raw materials that are produced with the use of chemicals that have led to increased demand for organic chocolates. In addition, the highest per capita consumption of confectionery products is also contributing to market growth there.
Preference for Offline Distribution Channels for Confectionery Purchasing Owing to Easy Access
Based on distribution channels, the industry is bifurcated into offline and online platforms. Between these two, the offline channel held more than 75% of the market share in the year 2022. People in recent years have given preference to offline channels to purchase groceries, consumer goods, and confectionery products that include chocolate, and some other products.
Several suppliers and manufacturers are concentrating on logistic development. They are also focusing on strengthening their distribution channels to expand their business.
Key players in the confectioneries market are Lindt & Sprungli, Lotte Confectionery, Mars Wrigley, Mondelez International, Nestle SA, Perfetti Van MelleSpA, The Hershey Company, and Pladis.