CANDY MARKET ANALYSIS

Global candy market is projected to reach around US$ 113.67 Billion by the end of 2030, in terms of revenue, growing at CAGR of 4.5% during the forecast period (2023-2030).

Global Candy Market: Drivers

Increase in demand for chocolate candies

The growing demand for chocolate candies is expected to drive growth of the candy market. Chocolate candies play an important role as deserts during various festivals globally right from Halloween to Diwali, Eid, etc. Thus, increasing use of chocolate candies for various festivals and occasions have been estimated to contribute to the growth and expansion of the candy market, globally. Moreover, the launch of new products of chocolate candy has further accelerated the demand for candies, globally. New product launches such as chocolate candies with fruits and nuts has also been a contributing factor for the growth and expansion of the candy market, across the globe. For instance, in August 2021,  Snickers, brand owned and operated under the Mars Incorporation, announced to launch almond brownie flavor chocolate candy.

Rapid rise in demand for candies during festive occasions

The global market for confectionery is largely driven by the practice of gifting sweets at special occasions and festivals around the world. Popular holidays like Halloween, Christmas, Valentine's Day, and Easter are among the most common occasions for consumers to buy confectionery as a gift or as a treat. The cultural and festive importance of these events drives consumers to purchase confectionery in large quantities, resulting in seasonal fluctuations in the candy market. Candy manufacturers capitalize on these events by offering themed packaging, limited edition flavors, and promotional campaigns to stimulate market growth.

Global Candy Market: Restraint

Health issues caused by candies

 The consumption of chocolate and its associated candies has been linked to a variety of health issues, including obesity and oral infection. Chocolates are particularly prone to tooth infections in children, and should be consumed in moderation. Among adults, the excessive consumption of chocolate and other candies has been identified as a contributing factor to obesity. The high consumption of chocolate is one of the primary causes of weight gain among consumers, and its high content of sugar, fat and calories has been linked to an increase in weight.

Global Candy Market: Opportunity

Increasing demand for chew candies

With the increasing number of smokers in the UAE (United Arab Emirates) region, the consumption of chew candies is expected to rise in the near future. According to the World Bank, 18.2% of UAE adults contribute to the global prevalence of current tobacco use. The chew gums are known to reduce the tobacco smell after smoking and hence, has led to an increasing demand for chew gums. With the introduction of smokeless cigarettes in the UAE region, the number of smokers are estimated to increase and favor the consumption of chew candies. The presence of numerous hypermarkets/supermarkets have contributed to the rise and expansion of the candy market globally. Some of the major supermarkets/ hypermarkets such as Walmart, Carrefour, and others have been known to favor the revenue and sales of the candy market globally.

Global Candy Market: Trends

Rapid adoption of organic food culture and sugar-free candies

 The international market for sugar-free confectionery is growing rapidly due to the recent advancements in flavor, look, and mouth feel. Most manufacturers are focusing on product innovation in accordance with the organic food culture around the world. Furthermore, a variety of ingredients are being incorporated into the production of sugar-free confections, including organic confectionery, vegan confectionery, confectionery that is GMO-free and kosher, as well as sweeteners and other ingredients. This is likely to continue to drive growth in the category as more focus is placed on clean-labelled products and more stringent government regulations are being implemented on the level of sugar in food products. For instance, in 2021, Nestle introduced sugar-free chocolate bars containing dates for the first time.

Global Candy Market: Recent Developments

In January 2023, Bazooka's new candy brand, Juicy Drop, will be available for purchase in retail stores across Europe. The candy is available in a variety of sweet and sour flavors, including raspberry and strawberry.

In June 2023, Dharampal Satyapal Group (DS Group), a multi-business company and top FMCG conglomerate, has acquired The Good Stuff Pvt Ltd (previously known as Global CP Pvt Ltd), brand owner of LuvIt Chocolate and confectionery, which was formerly owned by Goldman Sachs and Mitsui Ventures. This acquisition is a calculated strategic move to strengthen and grow the Group's portfolio of confections while expanding distribution across grocery and other retail outlets.

In August 2021, Ferrara, a subsidiary of the Ferrero Group, launched Famous Amos Wonders, a range of globally inspired variations on the classic chocolate chip cookie made with ingredients sourced from all over the world.

In March 2023, The Hershey Company, one of the largest chocolate manufacturer, is introducing two delectable plant-based options to satisfy the growing demand for milk chocolate alternatives. The renowned chocolatier has announced the introduction of Reese's Plant Based and the launch of Hershey's Plant Based across the country.

Global Candy Market: Regional Analysis

North America is predicted to hold the largest share of the global candy market due to the existence of key companies in the region and the region's primary candy consumer base. The demand produced annually in the U.S. is merely 7.8 billion pounds. The Asia Pacific is anticipated to see the fastest revenue growth because of changes in dietary preferences and lifestyles in the region's nations, including China and India.

Figure 1. Candy Market Share (%), By Region, 2022

On the basis of region, North America dominates the global candy market with the 39% market share in terms of revenue, followed by Europe and Asia Pacific, respectively.

Global Candy Market: Segmentation

The global candy market is divided into three segments: type and distribution channel. The candy market on the basis of type is further divided into two types: chocolate candy and non-chocolate candy. The non-chocolate candy market is divided into hard-boiled candies, pastilles, gums, jellies, chews, toffees, caramels, nougat, mints, and other non-chocolate candies. The other non-chocolate candy varieties are licorice, lollipops, and candy with medicinal purposes. Markets are divided based on distribution channels into supermarkets and hypermarkets, convenience stores, specialty retailers, online retailers, and other distribution channels.

Figure 2. Candy Market Share (%), By Distribution Channel, 2022

On the basis of distribution channel, in 2022, convenience segment accounted for 36% of the revenue share followed by supermarkets & hypermarkets and specialist retailers segments.

Global Candy Market: Impact of Coronavirus (COVID-19) Pandemic

The spread of Covid-19 led to lockdown all across the globe affecting the food and beverages market. Though chocolate consumption wasn’t hampered, the candies market did face a few irregularities in its consumption. Most of the candies are sold majorly through hypermarkets/supermarkets globally. With the implementation of lockdown, the hypermarkets/supermarkets were closed for a long period of time, which has ultimately hampered the sales of candies. During the lockdown period, consumers were concerned about stock piling of essential commodities to get through the pandemic. Though chocolate do not fall under the category of essential commodity, it did experience some sales for the children consumption and also as a source of comfort and indulgence for the adults in the lockdown period.

Global Candy Market: Key Companies

Key Companies operating in global candy market are August Stork, Candy Me, CartoonCandy, Cloetta Ab, DeMet, Ferrero Group, Ferrara Candy Company, Grupo Arcor, Haribo GmbH & Co. KG, Mars, Incorporated, Mondelez International, Inc., Naeemfoods, Perfetti Van Melle, Purebred Confectionery, Rock Candy, and The Hershey Company.

Definition

Candy is a type of confection, and sugar is its main component. While children and young people are the primary target market for candies. People of all ages around the world take pleasure in it. Modernization, westernization, and rising personal disposable income are the main drivers of the candy market's expansion.