Bangladesh Candy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Bangladesh Candy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Bangladesh's candy market is expected to register a CAGR of 8.53% during the forecast period.

• COVID-19 impacted the candy industry, although only for the short term, as the governments imposed multiple measures intended to slow down the spread of the virus. COVID-19 also brought massive changes to the retail side of the candy industry in Bangladesh as more consumers started using online ordering for groceries, ranging from click-and-collect to home delivery. Due to more consumers working from home, there has been a rise in the appetite for sweet indulgence. The shift in traditional patterns of food consumption may also open a pathway for innovation across the candy market across the country as the nation.
• The inclusion of ingredients that provide functional benefits, such as improving digestion systems and increasing consumer awareness about the benefits of consuming natural fruit extracts, is driving the market. With the high acceptance among the Bangladeshi population of new flavors, such as coffee, caramel, etc., the key players in the market are trying to come up with new flavors, which is also expected to drive the market over the forecast period. Moreover, additional functional benefits include mouth-freshening elements such as mint and other ingredients that attract consumers in the market for their taste and freshness imparting nature.
• High sugar content related to obesity is a severe concern among consumers. Consumers are looking for healthier options, such as low-calorie, high-cocoa, and functional ingredient-based confectionery. Unit packaging and bulk offerings of candies tend to attract consumers. Players tend to distribute these products in local convenience stores, grocery stores, supermarkets, and other mediums where the penetration of these products is high. Moreover, these stores tend to display these products on their cash counters to encourage consumers to make impulse unit purchases. This penetration plays an important role in the market and contributes to the majority of sales of candies across the country.

• The market's growth is attributed to the widespread impression that sugar-free candies are healthier than their conventional counterparts. The rising sugar consumption trends recorded in past years have been highlighted by the Bangladeshi government, further raising concerns as well as leading to the propagation of awareness programs to encourage consumers to alter sugar intake in their diet.
• Additionally, the rising number of diabetics in the country is fuelling concerns among the population, leading consumers to limit sugar and adopt sugar-free products in their diets. This factor has helped drive the growth of sugar-free candies in Bangladesh. Acknowledging the market prospects, several confectioners are coming up with sugar free-candy offerings. This, in turn, differentiates their offerings and broadens the customer base​.

• Fruit candies are gaining prominence among Bangladeshi consumers, especially among children, as these products are available in bright colors packaging and comprise various forms, such as hard-boiled candy, soft chewing candy, lollipops, center-filled candy, and deposited candy.
• For instance, Pulse, a hard-boiled center-filled spiced candy, gained a significant population, especially children and youth. Originally, it was launched in raw mango flavor in Bangladesh, and later to tap on the opportunity posed by consumer appeal, it was launched in various flavors.
• In addition, soft chew/jelly candies, which come in different flavors, such as strawberry, banana, mango, and orange, are easy to chew and are growing in popularity among Bangladeshi consumers.

Bangladesh's candy market is consolidated, and global brands, such as Perfetti Van Melle, dominate the market. However, domestic players such as PRAN Rfl Group, Olympic Industries Ltd, and ACI also have a considerable share in the market. To tap the growing demand in the market, the companies have set up their own production units in Bangladesh to meet the domestic demand more efficiently and reduce the cost of manufacturing and supplying. Companies are introducing innovative products to their already existing product portfolio by introducing new flavors, especially to attract the youth in the country.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support