Asia Pacific Sugar Confectionery Market Outlook, 2027

Asia Pacific Sugar Confectionery Market Outlook, 2027

The sugar confectionery market in the Asia-Pacific region is driven by a shift in consumer preferences due to rising disposable income and emerging economies in the region. China leads the sugar confectionery market in the region and India is the fastest growing market owing to thriving food and beverage industry and rising disposable incomes. Population growth also adds to the healthy growth prospects in these countries. Nowadays, many confections are enriched with vitamins, and the sector is also focusing on producing sugar-free or low-sugar versions of the products. Confectionery products, rather than being used as gifts, are also used as ready-to-go snacks between meals. Chinese consumers prefer small packages of confectionery products for less sugar consumption. In Asia Pacific, consumers are getting more health-conscious day by day, which has resulted in the demand for low-calorie and sugar-free food products. Asians have diversified tastes and preferences and are fond of experimenting with new flavours. Manufacturers are constantly innovating and widening their product portfolios to meet dynamic consumer demands.

According to the research report, ""Asia-Pacific Sugar Confectionery Market Outlook, 2027,"" by Bonafide Research, it is projected to grow at a steady CAGR of 4.25% over the forecast period ending in 2027. Small pack size and low cost is the most preferred strategies in the Asia-Pacific region adopted by key players. An emerging trend of confectionery gifts has superseded traditional sweets owing to their longer shelf life. Mints are gaining popularity over gums among young consumers, as they instantly refresh the mouth and have a soothing mental effect. One of the major restricting factors is the importance of traditional sweets in Asian cultures, which is hard to replace due to customs and beliefs. However, only last minute buying needs for gifting on occasions add to the market's growth. In the region, the growth is recorded at a steady pace, which is backed by the inclining demand from middle-income consumers.

The chewy confectionery segment leads the sugar confectionery market in the region, with a market value of USD 5.49 billion by the end of 2021. The market is highly competitive, mostly with the presence of a high number of local confectionery manufacturers. Nevertheless, the improved lifestyle that has allowed people to spend more has been profitable for international brands, capturing a considerable market. In order to establish their dominance, many brands are now focusing on embedding the flavours of traditional sweets within their confectioneries. Unlike the global trend, the liquorice segment is expected to be the fastest-growing segment, with an anticipated CAGR of 5.72%.

The region’s focus on confections enriched with vitamins has inclined and is also focusing on producing sugar-free or low-sugar versions of the products. This indirectly helped the segment of the geriatric age group to gain more popularity and thus reach a value of USD 2.13 billion by the end of the forecasted period. Even though the geriatric population contributes the least, this segment accounted for considerably more in Japan than in other markets.

In terms of sales channel, supermarkets/hypermarkets and convenience stores are closely related, with a small market share difference. These segments are expected to account for nearly 65% of the market in 2027. Aside from these, the introduction of new product lines, innovation in flavours extracted from healthy ingredients, and investments in retail space displays are expected to be major driving factors in market growth.

The key local players are keenly interested in investing in offline advertising campaigns and are also working hard on enhancing their online brand recognition. The overall regional market is hampered by the rise in instances of diabetes. The leading companies are focusing on improving their global position by enhancing their product lines and through mergers and acquisitions. Understanding the changes in lifestyles, companies are now innovating and introducing new products to cater to the customers' growing needs.

Companies Mentioned:
Mars Wrigley Confectionery, div. of Mars Inc., Ferrero Group, Haribo GmbH & Co. K.G., Perfetti Van Melle, Meiji Co. Ltd., Nestle SA, Hershey Co., Lotte Confectionery Co., Ltd., Mondelez International, Lindt & Sprungli AG

Considered in this report
• Geography: Asia-Pacific
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Countries covered in the report:
• China
• India
• Japan
• Australia
• South Korea

Aspects Covered in the report:
• Asia-pacific Market Size By Value for the time period (2015-2026F)
• Country Wise Market Size By Value for the time period (2015-2026F)
• Market Share by Product Type (Hard Boiled Sweets, Plain Mints, Caramel/ Toffee, Chewy, Novelty, Licorice, Sugar-free, Others) By Value
• Market Share by Age Group (Children(1-20 Age), Adult (20-55) & Geriatric(55 and above)) By Value
• Market Share by Sales Channel (Supermarket/Hypermarket, Convenience Stores, Pharmaceutical & Drug Stores, E-commerce & Others) By Value

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to sugar confectionery industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.