Seattle, WA -- (SBWIRE) -- 11/12/2019 -- Confectionary is the art of making products that are rich in sugar and carbohydrates. Although there is overlapping, confectionary is divided into two categories namely bakers' confections and sugar confections. Confectionery products are typically low in nutrients and high in calorie content. However, rise in awareness regarding healthcare has led confectionary market players to opt for sugar substitutes such as sorbitol, mannitol, lactitol, and maltitol.
Market Dynamics
Increasing demand for sugar-free, low-calorie, and organic products are expected to drive the global confectionary market during the forecast period. Chocoladefabriken Lindt & Sprüngli A.G. and The Hershey Company are some of the players offering sugar free chocolates, mints, toffees, candies, and jellies.
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However, rise in cost of raw material is expected to hamper the global confectionary market during the forecast period. For instance, cocoa prices have been fluctuating in the recent past due to erratic production and supply demand imbalance. According to the International Cocoa Organization (ICCO), prices have fluctuated between US$ 2000/ton and US$ 3000/ton since 2014. The ICCO recommends that producers either reduce the volume of chocolate products or raise prices to achieve profitability in such market conditions.
Global Confectionery Market Taxonomy:
On the basis of product type, global confectionery market is segmented into:
Sugar Confectionery
Chocolate Confectionery
Gum
On the basis of distribution channel, global confectionery market is segmented into:
Supermarkets
Hypermarkets
Online
Convenience Stores
Specialty Stores
Others
Market Outlook
On the basis of product type, chocolate confectionery segment is expected to hold dominant position in the global confectionary market during forecast period. According to Coherent Market Insights' analysis, the global chocolate market was valued at US$ 99.60 billion in 2016 and is expected to grow at a CAGR of 6.6% over the forecast period.
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On the basis of distribution channel, hypermarkets and supermarkets segments are projected to be the two largest segments over the forecast period. This is owing to broad product display and tactile buying experience. Moreover, food & beverages sales, which are inclusive of confectionery have not witnessed much growth in the online distribution channel segment due to issues such as customers being unable to gauge product quality and freshness.
Global Confectionery Market- Regional Insights
Among regions, North America accounts for the largest share in the global confectionary market, with the U.S. being the major contributor. Growing seasonal demand for confectioneries along with high demand for candies and chocolates is expected to drive the market in the region. The consumption of chocolate and other confectionery treats is associated with many events and holidays throughout the year such as Valentine's Day, Halloween, Easter, Thanksgiving, and Christmas. The sales of confectionery products in the U.S. are observed to be high during such festivals. Moreover, the urban population is more inclined towards consumption of confectionery compared to its rural counterparts. According to the U.S. Census Bureau, over 80% of the population resided in urban settings in 2017. According to UN sources, 82.3% of the population is urban in Canada. These factors are expected to contribute to the market growth in the region. Furthermore, artisanal chocolates, which are manufactured by local manufacturers are in high demand due to perception of ethical sourcing of ingredients and healthier alternative to products from major market players.
Europe is also expected to significant market growth as it is among the leading consumers and producers of confectionery products. In Switzerland, sales of premium chocolate continued to rise in 2017. Swiss consumers were more inclined towards high quality confectionery products, which incorporate organic, fair-trade chocolate and/or chocolate with a high cocoa content. Leading players such as Chocolat Bernrain A.G. and Max Felchlin A.G are offering organic chocolates in the market. In 2016, the total quantity of Swiss chocolate sold in the domestic and international market increased by 2.3% to 185,639 tons from the previous year. According to Coherent Market Insights, chocolate confectionery segment was the largest segment in France in 2017. In 2016, a thriving tourism industry, which hosted over 80 million tourists according to French government sources coupled with high local demand is expected to further bolster the market for chocolate confectionery in the country. Market players operating in France such as Chocoladefabriken Lindt & Sprüngli AG (Lindt), Nestle S.A., and Mondelez International have reaped the benefits of the tourism industry. Lindt reported a sales growth of 4.8% in 2017 over the previous year and plans to invest US$ 32.3 to expand manufacturing of chocolates in Switzerland.
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Key players in the market are involved in various growth strategies such as acquisitions, mergers, new product developments, capacity expansions, and flavor differentiation, which is expected to drive the market growth. For instance, in 2017, Hershey's acquired Amplify Snack Brands to create a broader portfolio of brands by merging Hershey's snack mix and meat snacks products with Amplify's products such as Skinny Pop, Tyrrells, Oatmega, and Paqui.
Key players operating in the global confectionary market include Nestlé S.A., Mars Inc., Ferrero Group, Meiji Co. Ltd, Candyrific, Elmer Chocolate, Mondelez International, Grupo Arcor, and The Hershey Company.
Key Developments:
1. In Oct' 2019, an American Licorice Company partnered with a Cambodian confectionery manufacturer - Aprati Foods, to develop a line of coffee and fruit-flavored hard candies in the US market. This non-GMO candies will be sold online under two names – Mocati (offers caramel macchiato, espresso and mocha mint) and Frutati (offers dual fruit flavors including blueberry yuzu, green apple mango, and pineapple passionfruit).
2. In Sep' 2019, the U.K.-based luxury department store chain Harvey Nichols, added new confectionery range to its own label range. The new range offers mints, boiled sweets, fudge, jellies, toffies and brittles.
3. In August 2019, the alcoholic cocktail gummy manufacturer, Smith & Sinclair announced to launch its products in Germany, France, Spain, and Italy and in the US following its strategy to expand globally.
4. In April 2018, The Hershey Company, one of the largest chocolate company in the world, is planning to invest approximately US$ 500 Mn over 2030 to grow its Cocoa for Good program, which is primarily focusing on refining sustainable practices in the production of cocoa.
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