Global Confectionery Ingredients Market - 2023-2030

Global Confectionery Ingredients Market - 2023-2030

Global Confectionery Ingredients Market reached US$ 80.22 billion in 2022 and is expected to reach US$ 120.33 billion by 2030 growing with a CAGR of 5.2% during the forecast period 2023-2030. The increased awareness among people regarding the various health benefits of chocolates is driving health-conscious people towards confectionery products driving the global confectionery ingredients market growth.

The various innovations in the product developments produced with confectionery ingredients drive market expansion. For instance, in January 2022, Cadbury, a brand of Mondelez International, introduced the twist wrap packaging solution for its Duos range. This innovative packaging allows consumers to snack in small portions by twisting and sealing the package after consuming half of the cocoa-based bar.

Increasing foodservice outlets increase the scope for the confectionery products, thereby, driving the global confectionery ingredients market. The increased demand for convenience foods and the growing importance of confectionery products in all age groups of consumers boost the market expansion. The growing health and environmental concerns are increasing the need for natural and organic confectionery ingredients, driving the market expansion.

Dynamics

The Increasing Applications of Confectionery Ingredients

The confectionery ingredients as various applications in different sectors. Multiple ingredients such as sweeteners, flavours, emulsifiers, and others are appointed for the texture, flavour, and mouthfeel improvements of a product. They are utilised in sugar, chocolate, and bakery confectionery. The rising demand for confectionary ingredients for coatings and spreads boosts the market expansion. Growing industrial expenditure on bakery and confectionery products drives market growth. They also have increased applications in beverages, cosmetics, pharmaceuticals, and other sectors.

The increasing health consciousness among people is driving the demand for healthy confectionery ingredients that produce low-calorie, sugar-free products. The rising demand for clean-label ingredients increases the demand for vegan, organic and natural confectionery ingredients. For instance, a UK-based independent producer of CBD products launched the CBD Milk Chocolate bar in September 2020. This particular chocolate bar is infused with CBD oil and is a 43% single-origin artisan milk chocolate bar.

New Product Launches

The increased demand for various flavored confectioneries drives the market growth. People are willing to try and accept various flavors in various confectionery products. Flavours like chocolate, strawberry, and others have increased demand due to their unique taste. The taste, texture, appearance, and flavor of the product are given uttermost importance for the product.

The new product launches by the key market players are driving the market growth. For instance, In March 2023, The Hershey Company announced the release of its new Hershey's Kisses Milklicious candies. This product is featuring with a rich, creamy chocolate milk filling. In the same way, Dove Chocolate, a brand of Mars, announced the launch of its DOVE Milk Chocolate Molten Lava Caramel PROMISES, in March 2023.

Price Fluctuations and Strict FDA Regulations

The volatile prices of cocoa and sugar are a major retrain for the confectionery ingredients market. The poor weather conditions and crop diseases of cocoa affect the yield. This may affect the stock availability ratio and cause economic difficulties. The price fluctuations and quality standards and norms for confectionery raw materials are the major restring factors.

The strict FDA regulations on private labels hinder market expansion. FDA-certified color additives needed to be labelled in the product labelling information. The strict regulations by the FDA on the use of synthetic food ingredients are restraining the market growth, and only approved food ingredients are allowed to be used. In addition, maintaining international quality standards is another restraining factor for this market.

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Segment Analysis

The global confectionery ingredients market is segmented based on type, source, form, category, application, distribution channel, and region.

In the Confectionery Ingredients Market, the Cocoa & Chocolate Segment Holds the Largest Market Share.

The global confectionery ingredients market has been segmented by type into cocoa & chocolate, dairy ingredients, hydrocolloids, emulsifiers, malts, oils & shortenings, starch & derivatives, sweeteners, flavours, and others. The cocoa & chocolate segment held the largest confectionery ingredients market share of 20.8% in 2022 in the confectionery ingredients market analysis report. The broad use of cocoa and chocolate is driving the segment’s share in this market.

Cocoa and chocolate as a greater demand in the market, not only from the manufacturers but also from the consumers as well. Cocoa and chocolate are widely available and as incredible applications in the confectionery and baking industries. The health benefits of these products are highlighted its use in product production. Various brands are launching cocoa-based products. For instance, in February 2022, Hershey's launched Celebrate SHE, a cocoa-based limited edition bar.

Geographical Penetration

North America Held the Largest Share of the Global Confectionery Ingredients Market.

The global confectionery ingredients market is segmented into five parts based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The North American confectionery ingredients market has the largest market share of 38.6% in 2022 in the confectionery ingredients market analysis. The increased demand for confectionery products is driving the market growth in this region.

Countries like US and Canada have increased demand for various confectionery products. The increased production and consumption of these products resulted in increased product sales. According to National Confectioners Association, the total confectionery sales reached around $ 42.6 B in United States. Chocolate sales are recorded to be around $23.9B.

Competitive Landscape

The major global players in the market include Kerry Group, Archer Daniels Midland Company, Ingredion Incorporated, Tate & Lyle Plc, Cargill Incorporated, Sensient Technologies Corporation, McCormick & Company, Barry Callebaut, Koninklijke DSM N.V., and Concord Foods.

COVID-19 Impact Analysis

COVID Impact

The COVID-19 pandemic had a positive impact on the confectionery ingredients market. The increased health consciousness among consumers increased the shift in preferences for clean and organic food products. The increased consumer demand for natural food ingredients, motivated manufacturers to increase their natural ingredients, such as naturally derived confectionery ingredients product production levels.

Russia- Ukraine War Impact

The Russia-Ukraine war badly impacted the food service sectors around the world. There was a disruption in the production and processing of several food and beverage products. The decline in food product production decreased the demand for food ingredients. The war also resulted in increased product prices. The supply chain disruption and decreased economic conditions negatively affected the confectionery ingredients market.

By Type
• Cocoa & Chocolate
• Dairy Ingredients
• Hydrocolloids
• Emulsifiers
• Malts
• Oils & Shortenings
• Starch & Derivatives
• Sweeteners
• Flavors
• Others

By Source
• Natural
• Synthetic

By Form
• Dry Form
• Liquid Form

By Category
• Organic
• Conventional

By Application
• Filling
• Coating
• Chocolate Confectionery
• Bakery Confectionery
• Sugar Confectionery
• Caramels and Chewies
• Gum
• Others

By Distribution Channel
• Business to Business
• Business to Consumers
Supermarkets/Hypermarkets
Convenience Stores
Online Retailing
Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
U.K.
France
Italy
Spain
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 January 2023, Kerry, a confectionery ingredient manufacturer, began exclusive discussions to sell its sweet ingredients segment to IRCA for €500 million as part of its portfolio consolidation efforts.
• In February 2023, Michroma announced its developmental thoughts in novel technology for food colorings and flavorings that use precision fermentation to scale fungal food colors.
• In February 2023, Tate & Lyle Ingredients Solutions made a major brand refresh. In confectionery production, the company made a makeover by developing a new logo, typeface, and iconography. This attempt is made to expand companies' business operations and to develop new products for the confectionery sector.

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

The global confectionery ingredients Market report would provide approximately 85 tables, 94 figures and 181 Pages.

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