The global confectionery market was worth $184 billion in 2015, pushed on by chocolate confectionery, which dominated the sector, accounting for one-third of total revenues.
According to Allied Market Research, the worldwide confectionery market will grow at 3.4% per annum from 2016 to 2022, and is projected to reach $232.09 billion over the next seven years.
Product innovation and the rise in gifting trend, as well as retail market expansion and strong marketing campaigns, are the key factors that will drive the growth. Meanwhile, economic growth and the rise in disposable income in emerging economies will supplement this growth trend, with an increase the purchasing power of customers, according to the Alllied Market Research report authors.
India is expected to grow at a faster rate ahead of 2022, registering 4.6% growth per annum. Meanwhile, Europe and Asia-Pacific, which collectively accounted for more than half of the global confectionery market revenue in 2015, are expected to continue to lead the market: Europe at the top and APAC second, said report authors.
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However, manufacturers need to take into account health concerns surrounding confectionery, by offering calorie-reduced options, and the cost of raw materials.
“Growth in health awareness and the fluctuation in the cost and availability of raw materials such as cocoa products are some of the factors may hinder the growth of the confectionery market,” said Eswara Prasad, Team Lead, Chemicals & Materials at Allied Market Research.
“However, the rise in demand for sugar-free, low-calorie, and organic products could boost the market expansion.”
By 2022, dark chocolate will show the highest growth rate among confectionary up 4.3% per year. Mints will also increase, up 3.6% annually, said the report.
The confectionary market is currently segmented into sugar, chocolate, fine bakery wares, and others, which is made up of gums, snack products, brand ice creams, and raw pastes.
The prominent market players profiled for the report were Delfi (Singapore), Ezaki Glico Co. (Japan), Ferrero (Italy), Lindt & Sprüngli (Switzerland), Lotte Confectionery Co. (South Korea), Mars (U.S.), Mondelez International (U.S.), Nestlé (Switzerland), Hershey (U.S.), and Wrigley (U.S.).