Candy’s Organic Growth
In addition to the buzz around better-for-you products, convenience-store customers are also looking to satisfy their indulgent cravings. Because of this and other cross-channel candy consumerism, the global confectionery market, which was valued at $184 billion in 2015, is projected to reach $232 billion by 2022.
And that growth could be even better, according to Eswara Prasad, team lead of chemicals and materials for Allied Market Research, the Portland, Ore.-based firm behind the study Confectionery Market by Type: Global Opportunity Analysis and Industry Forecast.
While consumer health consciousness and the uctuation in cost and availability of raw ingredients are uphill battles that the industry continues to face, “the rise in demand for sugar-free, low-calorie and organic products boosts the market expansion,” Prasad said in the report.
Led by the chocolate segment, which dominated the market in 2015 with more than one-third revenue share, the global confectionery industry can credit several factors for the growth in revenue:
- Product innovation
- Rise in gifting trends
- Retail market expansion
- Strong marketing campaigns
- Economic growth
- The rise of disposable incomes
Manufacturers are diversifying their confectionery offerings with the addition of organic herbal fillings, exotic flavors and functional ingredients. Consumers on the hunt for better-for-you options, or “clean eating,” aren’t shying away from indulgent snacks. Rather, they’re simply more aware of what’s on the ingredient list of their indulgent treat. Many candy brands are manufacturing gluten-free and gelatin-free options to meet the growing need for cleaner candy labels.
Likewise, chocolate’s growth can also be attributed to the introduction of organic ingredients, alcohol flavors, nuts such as hazelnut and unusual fruits.
Other key findings include:
- Dark chocolate is expected to show the highest growth rate in the chocolate confectionery market with a compound annual growth rate (CAGR) of 4.3%.
- Mint sales are projected to increase with a CAGR of 3.6%.
- Europe and Asia-Pacific collectively contributed more than half of the share to the global confectionery market revenue in 2015.
Estimated value of the global confectionery market by 2022
Source: Allied Market Research