Candy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Candy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The candy market is projected to register a CAGR of 3.99% during the forecast period, 2021-2026.

Over the last year, the coronavirus had impacted every industry, and that includes the confectionery and candy industry as well, although only for the short term. Early sales data of the candy market across the globe registered a steep decline in the gums and mint category as a result of COVID-19, while chocolate candy, as well as non-chocolate candy, continues to attain strong growth.

The growing availability of different varieties of candies, both chocolate and non-chocolate candies, has led to the high demand for candies, fueled by the impulsive purchase behavior of consumers. Consumers in New England and the Midwest tend to eat the most candy. Nationwide consumption peaks around Halloween, Christmas, Valentine’s Day, and Easter.

COVID-19 also brought massive changes to the retail side of the candy industry. More consumers started using online ordering for groceries, ranging from click-and-collect to home delivery. The Hershey Company stated that its e-commerce sales were up significantly, with growth over 120% in March 2020, versus 60% in January 2020 and February 2020.

Candy products have acquired a prominent place in households across the globe due to COVID-19 lockdown implementations and lockdown extensions. The preference for sweet indulgence has increased due to more consumers working from home. Furthermore, the change in traditional patterns of food consumption may also open a pathway for innovation across the candy market across the globe as countries are recovering from the impact of the global pandemic.

Key Market TrendsThe Non-chocolate Segment Holds the Largest Share of the Market

Non-chocolate candies are observing high growth in the global market, owing to the recent developments in the candy flavors, their appearance, and mouth-feel. The majority of the manufacturers are focusing on product development in line with the organic food culture across the world. Further, due to constant emphasis on clean-labeled products and stricter government regulations on the amount of sugar content in food products, organic, vegan, GMO-free, sugar-free, and kosher food colors, sweeteners, and other ingredients are being used to manufacture non-chocolate candies, which is likely to contribute to the growth of the category.

Emerging Economies are Driving the Candy Sales

Asia-Pacific leads the global candy sales, followed by North America. The target populations for the candy market are primarily children and the young population. The growing population in emerging economies has led to the high demand for candies, fueled by the impulsive purchase behavior of consumers. In developing economies, such as Asia, Africa, and South America, the per capita candy consumption, which was very low compared to their western counterparts, is slowly increasing. Many countries are witnessing campaigns and media advertisements related to innovative candy products, which are directly impacting the sales rate of sugar-based confectionery. Companies are increasingly launching products with innovative flavors such as raw mango, tamarind, strawberry, etc., to attract consumers in these emerging markets.

Competitive Landscape

Based on the nature of the market and with virtually no entry barriers, the candy market globally is very competitive with a huge number of domestic companies capturing minimal share in the market. Some of the prominent players include Perfetti Van Melle Group BV, Mondelez International Inc., Mars Incorporated, The Hershey Company, and others. Owing to the rapidly developing nature of the market, launching a new product has become the most important strategy, among all. Companies have adopted expansion as the key strategy, followed by mergers and acquisitions. This attempt of global players has proven successful in making their presence stronger with high market shares.

Additional Benefits:

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

Companies Mentioned

Perfetti Van Melle Group BV
Mondelez International Inc.
Mars Incorporated
Haribo GmbH & Co. KG
Nestle SA
The Hershey Company
Ferrero Group
Cloetta Ab
Grupo Arcor
The Topps Company Inc.

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