Global Candy Market Growing Massively: Expected to Reach USD 278.9 Billion by 2027
Published | May 2021
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that the global candy market was worth USD 209.8 billion in 2020. According to the study, the market is expected to grow at the CAGR of 4.2% during 2021-2027 (forecast period), earning revenue of around USD 278.9 billion by the end of 2027. The change in traditional patterns of food consumption, working from home, innovation in candies and rising demand for dark chocolates are some of the factors propelling the global candy market forward. According to National Confectioners Association (NCA) data, between mid-March and August 2020, candy sales increased by 3.8%, while chocolate sales increased by 5.5% with premium chocolate sales increasing by 12.5%. Furthermore, over the same time span, candy sales increased by 17%, chocolate sales increased by 18%, and premium chocolate sales increased by nearly 21% in grocery stores.
Product Innovation and New Offerings by manufacturers are Propelling the market growth
The new product innovations from candy manufacturers are driving the growth of the global candy market. For instance, in August 2020, Laffy Taffy®, the iconic candy brand known for its delightfully fruity flavor introduced its innovative poppable candies—Laffy Taffy LAFF BITES. Also in March 2021, Thinful, a low-sugar snack mix of 2 grams of sugar and 60 calories per half-cup portion, was launched by Piedmont Candy. Moreover, The growing demand for health-conscious products has also resulted in the development of gummies for hair growth and protein bars. Such innovations are playing a primary role in driving the growth of the global candy market.
Rising Demand Among Young Population And Children Fueling the Market Growth
Children typically enjoy the various flavors of candies. Also, chocolate cravings are particularly prevalent among the young population. Festivals such as Halloween, Children's Day, Christmas, and others are also significant contributors to the purchasing of chocolates designed specifically for children. Candies designed specifically for children may contain an addictive amount of sugar, which ends up triggering craving.
Furthermore, the marketing strategy for candies is designed to entice children. Aside from that, ads are planned and created with children as the target audience. Furthermore, the price of candies is quite affordable, making it simple for children to purchase without any financial constraint. According to World Bank, in the year 2019, population aged between 0-14 years reached 1.98 billion population. Moreover, the population woud further increase in the upcoming years. Thus, gives immense opportunities to the manufacturers in the global candy market.
Non-Chocolate Segment Accounts for the Largest Share in Global Candy Market on the basis of type Segment
Based on type the global candy market is bifurcated into chocolate candy, non-chocolate candy, hard rolled candy, breath sweeteners, caramels, gummies, dietic candy, marshmallows, licorice, lollipop,sours, chewing gums, cotton candy and others. The non-chocolate segment dominates the overall market due to rising health concerns, increased awareness of diseases such as diabetes and obesity, the wide variety of flavors available in non-chocolate candies, and collaborative and innovative initiatives taken by non-chocolate companies to encourage consumerism.The non-chocolate segment also focuses on clean-labelled production due to the stringent rules of government over the sugar content in chocolates, coupled with certifications. Such as vegan, organic, GMO-free, sugar-free, and kosher certified sweeteners, food colours, among other ingredients creates opportunities for the manufacturers of non-chocolate candy.
Global Candy Market: Regional Insights
Based on region, the global candy market is segmented into North America, Europe, the Asia-Pacific, Latin America and the Middle East and Africa. Among these regions, The Asia-Pacific region accounts for the majority of these, owing to increased candy consumption and shifting customer preferences for exotic or luxury candy products marketed and manufactured in the region. Moreover, companies such as Derby India and Perfetti Van Melle India launched new candies that are filled with vitamin c and fruit juices. The importance of vitamin C has been highlighted in the current scenario as a result of the COVID-19 outbreak. Vitamin C is thought to be an immunity booster for fighting the novel coronavirus. As a result, the stock value will rise.
Because of the high consumption of candies, North America is the world's second-largest candy market. The demand of North American consumers for quality and premium candies is rapidly growing. This is due to their change in taste and eating habits, which offers immense opportunities to candy manufacturers for new product development. Moreover, in this region, consumers spend more on premium candy products like artisanal. Artisanal candies not only have an appealing appearance but also has increased palatability. Furthermore, intensified manufacturer efforts, the advent of new technology, and emerging production facilitation have been fueling the candy market in the region.
Impact of COVID-19 Outbreak on the Global Candy Market
Due to the COVID-19 outbreak, the global candy market was also impacted for a short term. Candy manufacturers suffered significant losses and challenges as a result of the national lockdown as the candy manufacturing operations were suspended temporarily. However, work-from-home patterns during the lockdown phase have increased people's desire for sweet treats. As a result, both chocolate and non-chocolate candies saw significant growth during the lockdown. COVID-19 has ushered in significant improvements in the candy market's retail sector too. The pandemic ended up changing consumer’s purchasing patterns as more and more consumers started opting for online purchase of candies. Thus, candy products have gained prominence in households as a result of COVID-19 lockout implementations and extensions, thereby propelling the growth of the global candy market. Furthermore, as countries recover from the effects of the global pandemic, changes in traditional food consumption habits have created immense opportunities for innovation across the candy market worldwide.
Key Market Players: The global candy market is highly fragmented. It has a wide scope for new entrants as the demand from consumers are endless in terms of taste. Companies are coming up with several new launches (such as different flavour candies) to create the new demand in the market. Some of the key market players in the global candy market are Perfetti Van Melle Group, Mondelez International, Inc., The Hershey Company, Mars, Incorporated, Nestlé S.A., Crown Confectionery Co., Ltd., Kellogg Company, Grupo Arcor S.A., Lotte Confectionery Co., Ltd., Meiji Holdings Co., Ltd., Arcor, August Storck KG, Yildiz Holding, Chocoladefabriken Lindt & Sprungli AG, United Confectionary Manufacturers, Ezaki Glico Co. Ltd., Ferrara Candy Co., Ferrero Group, General Mills, and, other prominent players.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global candy market size & forecast. The report promises to provide recent technology trends of the global candy market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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