Global Confectionery Market - Segmented by Product Type, Distribution Channel and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global confectionery market was at USD 187.14 billion in 2017 and is expected to register a healthy growth during the forecast period. The global confectionery market includes chocolate, gums, sugar confectionery, and snack bar. Chocolate is the most popular category, which dominates the market owing to its increased consumption globally.
Rising demand for exotic varieties and premium chocolate products has driven the market. The market for confectionery sale varies from country to country. For example, sugar confectionery accounts for 60% of retail confectionery sale in China while it only holds 25% in Europe. Globally, Europe dominates the market holding a market share of 29.5%. Asia-pacific and Eastern Europe have recorded a high growth rate during the forecast period owing to developing economy and craving for healthy snacking.
Growing Demand for New Flavors, Sugar-free, and Functional Confectionery
High sugar content related to obesity is a severe concern among consumers. Consumers are looking for healthier options, such as low calorie, high cocoa, and functional ingredients based confectionery. Functional claim on the confectionery products label is growing rapidly. In recent years, there is a significant increase in the number of the product launch in sugar-free gums, energy chews, and candy. Healthier chocolate with low calorie has gained popularity among consumers. Nestle, Mars, Lindt, and Ferrero has achieved massive success with their introduction of low-calorie confectionery line. These players have targeted to keep calorie to 200 or below in half of their confectioneries by 2022. Mars has introduced various varieties of new flavor to low-calorie confectionery in 2016. The sale of the company grew ten times faster than the conventional confectionery category.
Convenience, on-the-go Snacking Accelerating Demand
Convenient packaging such as multi-packs, smaller size, and flexible packaging are growing in demand. Consumers like to snack in a lower portion at multiple occasions. Busy lifestyle and increased working women population in emerging countries have led to rising in skipping breakfast. Healthier options in snack such as breakfast and cereal bar have turned as an alternative to breakfast for consumers. In Asia, China, and India are the fastest growing markets for breakfast and cereal/granola bar. The global snack bar sale has surpassed a volume consumption of 816 million Kg in 2016 with cereal bar accounting for a major share. The global energy bar market size is estimated to reach 290 million Kg by 2023. Introduction of new healthier ingredients, such as yogurt, berries, and almonds in the snack bar in the convenient pack has driven the market.
Wealthier Markets Boosting Confectionery Sales
Saudi Arabia and UAE have observed a faster CAGR of 2% than the global average. The Middle East & Africa confectionery market has valued at USD 9 billion in 2016. Chocolate confectionery and gums are the more popular category in MNEA region as compared to sugar confectionery sale. The confectionery production industry in the Middle East has recorded a growth of 20% in annual turnover. Increased foreign working population, growing organized distribution channel and high per capita income is driving the confectionery market. Heavy price and discount offered at supermarkets/hypermarkets are another factor boosted the chocolate confectionery sale in the region. Countlines dominates the chocolate confectionery market with a volume share of 30.5% in 2016, which is followed by Softlines/Selflines. Boxed assortments sale is growing in developing region owing to seasonal chocolate gifting trend.