Candy Market Size, Competitive Landscape and Market Forecast - 2029

SKU: DMFB2970 | Last Updated On: Jun 22 2022 | Available Formats

> Global Candy Market Expected to reach a high CAGR of 3.6% during the forecast period 2022-2029: DataM Intelligence

Global Candy Market is segmented By Type (Chocolate Candy, Non-Chocolate Candy (Hard Boiled Candies, Pastilles, Gums, Jellies and Chews, Toffees, Caramels, and Nougat, Mints, Others)), By Distribution Channel (Supermarket/Hypermarket, Convenience Stores, Specialty Stores, Online Retailers, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Market Overview

The Global Candy Market is expected to grow at a CAGR of 3.6% during the forecasting period (2022-2029).

The food and beverages industry identifies candy as a part of the confectionery industry and uses the terms confectionery and candy interchangeably. This preferably includes preserves, pastries, and ice creams.  The global candy market is anticipated to grow at a CAGR of over 3.8%, during the forecast period owing to increasing innovation in existing products and rising demand for chocolate products globally. However, rising health concerns about diseases like obesity and diabetes are somewhat inhibiting the growth of the global candy market. To tackle this situation, sugar-free and low-calorie candies are being manufactured by the companies. Major challenges faced by the industry include rising government regulations, changing end-user preferences, and health issues, which might hamper the growth of the market through 2029.

 

Market Dynamics

New candy flavors unveiling in the market is expected to drive the market growth

Increasing disposable income of people, along with the rising popularity of dark chocolate will drive the growth of the global candy market. Additionally, the strong demand for candies among children and the young population will further support the market growth of candy across the globe. The lucrative target population for the candy market is the children and the young population.  According to the U.S. Census Bureau, in the year 2016, children aged 0-17 years accounted for 73.6 million populations. Moreover, the growing availability of the various type of candies has increased the demand for candies worldwide. Rapid innovation in existing products driven by the growing demand for chocolate products will increase the demand for candy globally. Key players are focusing on introducing low calorie and sugar-free candies due to the increasing health concerns among the population which will create more opportunities in coming years. For instance, Big Red is a cinnamon-flavoured gum manufactured by Mars Incorporated. Furthermore, changing consumer taste and preference in developed and developing economies will further propel the growth of the global candy market.

However, the increasing concern related to obesity and diabetes among consumers and growing health awareness among individuals may hinder the growth of the global candy market.

Market Segmentation: non-chocolate candy segment is expected to be the largest segment with a share of XX% during the forecast period

The global candy market has been segmented by type into chocolate candy and non-chocolate candy. The non-chocolate candy segment held the largest share as of 2020 due to the variety of flavors available in the form of hard candies, chewing gums, lollipops, gummies, caramel candies, jelly candies, and many others. Toffees, caramels and nougat segment held a significant market revenue share of XX% in the year 2020. According to CalorieKing.com, caramel candies contain around 7.8g of carbohydrates and 0.5g of protein, which provides energy to the body. Based on The American Heart Association, saturated fats block the arteries and are recommended to be a maximum of 7% of the overall daily calories. A caramel candy contains 0.3g of saturated fat. Thus, this segment generated significant revenue in the year 2020.

On the other hand, chocolate candies are highly preferred by all age groups. Chocolate flavor has many health benefits, such as helping in reducing mortality rates and also aids in treating diseases like bronchitis and depression. In addition, dark chocolates possess huge health benefits due to their cocoa content. It aids in proper blood flow in the body and facilitates overall blood vessel functionality.

Geographical Penetration: the Asia Pacific is expected to dominate the global Candy market

By geography, Asia Pacific is expected to dominate the global candy market in the year 2020, growing with a CAGR of xx% during the forecast period. The growing population in emerging economies has led to the high demand for candies, fueled by the impulsive purchase behaviour of consumers. Developing economies, where per capita candy consumption is very low compared to their western counterparts is slowly increasing. Many countries are witnessing campaigns and media advertisements related to innovative candy products which are directly impacting the sales rate of sugar-based confectionery. Companies are increasingly launching products with innovative flavours such as raw mango, Tamarind and Strawberry to win the attention of consumers.

 

Competitive Landscape:

The global candy market is highly competitive with a huge number of domestic companies capturing minimal share in the market. Some of the key companies of the market include The Hershey Company, Ferrara Candy Co., Mars Incorporated, and Nestlé SA among others. With a wide portfolio of well-known brands, these companies are dominating the candy market. Owing to the rapidly developing nature of the market, launching a new product has become the most important strategy, among all. Moreover, the key players are focusing on strategic initiatives such as collaborations/partnerships, and geographic expansions. For instance, in January 2021, Mondelez International Inc. announced the launch of Cadbury Dairy Milk Silk Mousse India under its premium chocolate segment. In 2020, Perfetti Van Melle USA Inc. launched its first soft gummy product in the United States under the Fruit-tella brand, which has strong roots in Europe. Fruit-Tella Soft Gummies have real fruit puree and are made with pectin instead of gelatin. Available in Strawberry and Raspberry and Peach and Mango varieties, each gummy has a playful fruit character shape. In 2019, following the success of M&M’S Block in the United States and Australia, Mars Wrigley United Kingdom announced its plan to expand its four brand-new M&M’S block variants to the UK market – Chocolate, Crispy, Hazelnut, and Peanut.

COVID-19 Impact: Increase in demand for candies due to work from home situation

Candy products have acquired a prominent place in households across the globe due to COVID-19 lockdown implementations and lockdown extensions. The preference for sweet indulgence has increased due to more consumers working from home. Early sales data of the candy market across the globe registered a steep decline in the gums and mint category as a result of COVID-19, white chocolate candy, as well as non-chocolate candy, continues to attain strong growth. COVID-19 also brought massive changes to the retail side of the candy industry.

However, the imports and exports of various products have been paused due to the pandemic situation. The exports of raw materials required for chocolates have declined from the previous year, which will impact the overall market. The majority of the confectionery manufacturers have shut down which also reduces the requirement of the imported raw materials. Partial lockdown in other cities and states includes access to all the shops with restricted timings. These regulations vary from one country to another and it negatively impacts the candy market as there is less/no manpower for production. For instance, in the U.S., The Hershey Company has temporarily closed all the facilities effective from March 15th 2020. The company also closed its branches around the world, owing to lockdown.

However, with the manufacturing facilities re-opening in various economies and the market players working towards reinstating the supply chain disruptions, it is anticipated to improve the market situation. As sugar and chocolate items are considered comfort food and consumers find unique ways to celebrate with more at-home activities such as baking, it is expected to impact the market positively. More consumers started using online ordering for groceries, ranging from click-and-collect to home delivery. The Hershey Company stated that its e-commerce sales were up significantly, with growth over 120% in March 2020, versus 60% in January 2020 and February 2020.

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