North America Confectionery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North America Confectionery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North American confectionery market is projected at a CAGR of 4.34% during the forecast period, 2022 - 2027.

The outbreak of COVID-19 has had a severe impact on the confectionery market. The stringent rules and lockdown during the course of 2020 have led to repercussions in the confectionery business, which caused a differential impact on raw material supply (agricultural produce, food ingredients, and intermediate food products), trade & logistics, demand-supply volatility, uncertain consumer demand, and affected the workforce at industrial level. One of the major factors that affected the confectionery industry during the lockdown was sales decline as a result of reduced gifting and impulse buying among consumers across the Region.

High sugar content related to obesity is a severe concern among North American consumers. Consumers are looking for healthier options, such as low-calorie, high cocoa, and functional ingredient-based confectionery. Functional claim on confectionery product labels is growing rapidly.

Increasing health awareness and obesity instances in North America have led to dramatic growth in the sales of low calories and sugar-free confectionery products. Consumers do not mind spending extra on high-quality products that meet their requirements.

Healthier snacking, along with convenience and taste, is the rising trend among consumers, which is the major strategy adopted by giant companies owing to the rising demand for healthy snacks. The demand for organic chocolate is rising nowadays as it does not consist of any added chemicals which can cause severe health issues. Consumers are now preferring vegan, organic, gluten-free, and sugar-free chocolates as they are conscious about their health and wellness. Thus, various giant confectionery companies are introducing the latest innovative flavored chocolates with innovative packaging that lets consumers consume in small portions and preserve the rest for later. The increase in exports of organic chocolates is also expected to drive the demand for the organic-based confectionery market.

Major companies are expanding their range of product by concluding functional ingredients, tropical fruit, and various flavor fillings, nut-based and exotic flavors in organic chocolates to fulfill changing customer demands, and this consecutively accelerate the confectionery market globally.

The market has witnessed significant growth, as premium chocolate is popular in United States. People in the country prefer treating themselves with bite-sized chocolates to limit their confectionary consumption. Furthermore, chocolate fits pleasantly with the ‘clean eating’ trend in the country. Since dark chocolate was found to have numerous health benefits, consumers are opting for premium dark chocolates to have a guilt-free experience. Hershey’s and Mars are among few of those brands that are continuously expanding their offerings in the dark chocolate category. The Cocoa Exchange brand of Mars offers the ‘Dove Signature Collection’ and ‘Pure Dark’ range of premium chocolates in the country.

The North American confectionery market is fragmented among multinational players accounting for the dominant share. Nestle, Hershey, Ferrero, Mars Inc., Mondelez International, Grupo Bimbo S.A.B. de C.V., Meiji Holdings, Pladis Global, Ferrero Group, Lotte Confectionery Co. Ltd are the leading players in the confectionery market. Companies are implementing numerous strategies such as new product development, partnerships, merger, and acquisitions to provide innovative products and expand their product portfolio to meet the growing demand.

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