Functional Confectionery Market - 2023-2030

Functional Confectionery Market - 2023-2030

Global Functional Confectionery Market reached US$ 2.30 billion in 2022 and is expected to reach US$ 3.98 billion by 2030, growing with a CAGR of 7.1% during the forecast period 2023-2030.

Functional confectionery products are enhanced with various nutritive ingredients to provide additional health benefits to the consumer. Functional confectionery is claimed to improve the overall health of a person by helping enhance the performance and cognitive wellness of the person. The product is accepted and can be consumed by various age groups by producing different products addressing different age groups.

The product is induced with essential nutrition such as proteins, vitamins & minerals, probiotics, and omega acids that add value to the existing products and help in improving health or dealing with certain health problems. With the increasing health and environmental concerns, consumers are accepting products that help enrich health and have little to no environmental impact. The availability of products in organic and natural forms increases market expansion.

North America has various major players in the region that help in the high product development and easy product promotions that help in the expansion of the market highly in the region; countries. For instance, in January 2021, Mars, Incorporated an American multinational manufacturer of confectionery, launched two new vegan functional bars in the market to satisfy the increasing vegan population in the region.

Dynamics

Increasing Demand for Functional Food Products

Functional food products are produced to provide additional nutrients and health benefits. The product is loaded with various essential nutrients such as vitamins, minerals, probiotics, and other components that support the overall health and well-being of a person. Functional food products act as an essential vehicle that can contribute to health-promoting properties by providing specific benefits to the human body's function.

With the increasing consumer awareness regarding the health benefits associated with the consumption of functional food products, the demand for functional foods in every sector of the food category including confectionery is increasing rapidly. The increasing prevalence of various health issues related to performance and wellness of consumer health due to unhealthy lifestyles is motivating consumers to take up healthy alternatives to daily food habits to improve health.

Availability and Accessibility of Product Consumption For Every Age Group

With busy schedules and hectic lifestyles, global consumers are missing the proper food consumption that helps in meeting the required nutritional benefits. In addition, the rapidly increasing snacking habit has become an easy mode of incorporating nutrition into the body. Parents are trying to provide essential nutrition to consumers in a fun and tasty way for child growth and development. Few of these products are even consumed by the adult population.

To meet the rising demand for such products manufacturers are introducing innovative products increasing the market scope. For instance, in September 2020, Lil Goodness, a Bengaluru-based company unveiled the launch of its first prebiotic chocolate in India. These chocolates are incorporated with prebiotic fibres, which activate healthy bacteria in the gut and improve the absorption of essential vitamins and minerals, therefore promoting better immunity and good health.

High Cost of the Functional Confectionery

The high productional cost of functional confectionery results in its increased final price, negatively impacting the market growth. The raw materials such as fruits, nuts and grains used in the production of these products along with the other essential ingredients result in a high range of manufacturing costs. In addition, the nutritional value addition to the products with essential nutrition adds up to more costs for the manufacturer causing price-sensitive consumers to alternative products.

Segment Analysisn

The global functional confectionery market is segmented based on ingredients, type, nature, function, age group, distribution channel and region.

High Demand for Chocolate among All Age Groups

The global functional confectionery market is segmented based on type into sugar, bakery and chocolate confectionery. The chocolate segment accounted for the largest share in the global functional confectionery segmentation with a high demand for chocolates among every age group. The segment is subdivided into daily bars, fudges and other forms of chocolate confectionery.

The new product launches in this segment help in the wide expansion of chocolate confectionery on the global market and positively impact the market size. For instance, in Jue 2021, The Functional Chocolate Co. introduced new products in their product offering with the launch of new chocolate bars that help in providing energy and improve quality of the sleep of consumers. The products namely, Espresso Crunch Energy Chocolate and Sleepy Chocolate are produced with powerful botanicals and health-promoting ingredients.

Geographical Penetration

Increasing Health Consciousness among North American Consumers

North America dominated the global functional confectionery market. With the increased consumer focus on health-promoting food products, the demand for functional food has increased immensely in this region. The increasing number of lifestyle disorders and other health issues in countries such as U.S. and Canada motivated consumers to reduce the consumption of related to unhealthy food habits and focus on the adoption of health-promoting on-to-go food products.

The increasing consumer interest in health and wellness added to the rising awareness of the benefits of functional foods accounts for the greater expansion of the market in this region. The region has increasing snacking habits fueled by the high acceptance of various confectionery products by every age group positively helping the market with new and innovative product launches.

Competitive Landscape

The major global players in the market include Swan Sweets Pvt. Ltd., Sourse, Vitrich, Mars, Incorporated, Nestle, Kellanova, Barry Callebaut, Blommer Chocolate Company, Alax Bioresearch Pvt. Ltd. and LiL Goodness.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a moderate impact on the functional confectionery market. Just like all other industries in the food and beverage sector, the functional confectionery market also faced challenges during the pandemic situation. The massive attack of the pandemic and sudden lockdown conditions caused the functional confectionery industry to witness a lot of drawbacks with interrupted processing and industrial activities.

The pandemic increased consumer focus on immunity and overall health resulting in the high demand for functional foods that are claimed to to support the overall health of a person. The products were fortified with vitamins, minerals, antioxidants, and probiotics that help in building immunity and dealing with unhealthy conditions. With the change in the consumers' preference towards health-promoting products, the market has incurred sales during COVID-19.

By Ingredients
• Protein
• Omega 3 and Omega 6
• Vitamins and Minerals
• Probiotics
• Others

By Type
• Sugar Confectionery
Hard candy
Boiled candy
Chewing Gums
Other
• Bakery Confectionery
Pastries
Doughnuts
Cookies
• Chocolate Confectionery
Dairy bars
Fudge
Other

By Nature
• Organic
• Conventional

By Function
• Cognitive Wellness
• Performance Enhancers
• Wellness Enhancers
• Oral Care
• Others

By Age-Group
• Children
• Middle Age
• Senior

By Distribution Channel
• Supermarket & Hypermarket
• Convenience Stores
• Specialty Stores
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In July 2023, Dr Reddy’s Laboratories announced the launch of a new product to improve kids' health. The product, CeleHealth Kidz Immuno Plus Gummies claims to provide nutritional requirements for the child's growing concerns and maintain better child immunity.
• In April 2023, Centrum expanded its product offering with the introduction of various range of products into the Indian market. The company laucnhed different flavorful gummies that support the growth, sleep, digestive and immune health of the kids. Centrum Immune Defence Gummy, Centrum Sleep and Refresh Gummy, Centrum Digestive Balance Gummy for adults Centrum Kids Immune Fuel, and Centrum Kids Growth Fuel for kids are the products introduced by the company.
• In December 2022, Perfetti Van Melle, an Italian-Dutch multinational company announced the launch of functional benefit variants of its Mentos Gum and Smint. Mentos Citrus Vitamin Gum is a sugar-free product and contains 25% of recommended daily vitamins B6, C and B12 helping consumers to meet nutritional requirements.

Why Purchase the Report?
• To visualize the global functional confectionery market segmentation based on ingredients, type, nature, function, age group, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of functional confectionery market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global functional confectionery market report would provide approximately 86 tables, 87 figures and 254 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies