Global Sugar Confectionery Market 2022-2028

Global Sugar Confectionery Market 2022-2028

Global Sugar Confectionery Market Research And Forecast 2021-2028 Market Size, Share & Trends Analysis Report By Product (Chocolate, Sugar-Based Food, Snack Bars ) And By Distribution Channel (Online And Offline) Forecast Period (2021-2028)

The global sugar confectionery market is estimated to grow at a modest CAGR of 3.5% during the forecast period. The market was valued at nearly $167.1 billion in 2021, which is expected to reach more than $208.3 billion in 2028. A number of factors are supporting the global sugar confectionery market's growth. Increasing disposable income, rapid urbanization, hectic lifestyles, and the rising trend of gifting sugar confectionery items are primarily driving global sugar confectionery market growth. Moreover, manufacturers are focusing on product innovation and packaging, which combined with aggressive marketing strategies will support sales growth over the forecast period.

Additionally, there have been several opportunities in the global sugar confectionery market as a significant increase in the demand for natural/organic food products, including sugar confectionery and snack bars, among consumers in recent years, has been observed. This can be primarily attributed to the increasing awareness among the consumers, concerning the adverse health effects associated with the consumption of various synthetic or artificial food ingredients, that are used in non-complying quantities in food products, as per the government standards. The natural and organic claim products witnessed a soaring demand in the European region during the forecast period, and the concept has been invading other markets as well. Increased consumer demand for nutritious products and the rising clean-label claims of products have accelerated the market growth. New confectionery launches with various label claims, such as “no artificial additive,” “non-GMO,” and “reduced sugar”, have been silently benefitting the customers over the years. Clean-label has moved on from being a trend, and it is now regarded as a standard in the food industry. The interest in identifying the ingredients present in snack bars and other products has triggered the growth of the sugar confectionery market

The key inputs in the sugar confectionery market are ingredients including sugar, cocoa beans, and their derivatives (cocoa butter, cocoa liquor, or cocoa powder). Suppliers to this market are cocoa farmers, along with producers of various other raw materials such as sugar, and the machinery required for production and packaging, among others. In Europe, as per Eurostat, Germany has been importing a large share of cocoa beans through its neighboring countries. Furthermore, only 40% of total German imports are directly sourced from producing countries. Most of the cocoa beans imported are used domestically for further processing, where the country is the second-largest grinder in Europe, after the Netherlands.

Further, the retail industry includes companies and individuals involved in the selling of finished products and goods to end-users. A wide range of sugar confectionery products is vented through various retail channels such as hypermarkets, supermarkets, convenience stores, grocery stores, and online channels. Internet retailing is the fastest-growing retailer in the sugar confectionery industry. These stores act as the global marketing tool, which assists in building an impressive premium image and increasing the brand exposure of a variety of confectionery products. Therefore, the retail market expansion is a significant factor that drives the sugar confectionery market. Tesco Plc (the UK), Aldi Stores Ltd. (Germany), Reliance Retail (India), Walmart (the U.S.) are a few of the top retailers of sugar confectionery products.

COVID-19 IMPACT ON SUGAR CONFECTIONERY INDUSTRY

The COVID-19 outbreak has not only significantly impacted the food & beverages industry but also, all stages of the supply chain and value chain of various industries. The pandemic has generated severe negative impacts on the economy as a whole, as well as the per capita income of individuals across the globe. According to the International Monetary Fund (IMF), the global growth is projected at -4.9% in 2021, with a drop of -8.0% in advanced economies and -3.0% in the emerging markets & developing economies.

Moreover, one of the major factors that affected the sugar confectionery industry during the lockdown was the sales decline, as a result of reduced gifting and impulse buying among consumers across the globe. However, the lockdown caused the shutting down of several restaurants, cafes, and eateries, which boosted the demand for sugar and sugar confectionery products. Due to which, a slowdown in growth was witnessed in 2021. In 2021, the sugar confectionery market had registered a growth of 1.5% YoY and had reached $169.6 billion from $167.1 billion in 2021. The growth in revenue in 2021 was mainly witnessed by the top confectionary companies including Mars, Inc., Ferrero Group, Meiji among others.

SEGMENT ANALYSIS

The report analyses the global sugar confectionery market based on type and distribution channel. Based on type, the market is categorized into chocolate, sugar-based food, and snack bars. Sugar-based food holds the largest market share and is expected to reach more than $1038 billion in 2028 from $84.6 billion in 2021 at a CAGR of 3.2% during the forecast period. Sugar-based food contains boiled sweets, caramels and toffees, mints, gums and jellies, and others.

Based on the distribution channel, the market is segmented into online and offline channels. The offline channel holds the largest market share of more than 90.0% during the forecast period. The offline market is expected to reach $182.9 billion in 2028 from $157.8 billion in 2021, at a CAGR of 2.8% during the forecast period. The offline channel is further segmented into supermarkets/hypermarkets, convenience stores, and others. Online channel is expected to witness the fastest growth rate of CAGR 9.7% during the forecast period. The segmental market is expected to reach $25.4 billion in 2028, from $13.4 billion in 2021. The establishment of online portals for confectionery products, especially in developing countries with a large population using the internet boosts the market growth. This platform offers a number of discounts on online purchases of confectionery to attract more customers. The emergence of advanced technology fosters the growth of the online business across the globe.

REGIONAL ANALYSIS

Geographically, the market is further segmented based on four major regions into North America, Europe, Asia-Pacific, and the Rest of the World. The Europe region accounts for the largest market share with predominance in the chocolate sugar confectionery segment. Added benefits, such as fortification with vitamins, the addition of natural extracts, dental health improvement, and breath-freshening effects, offered by confectioneries attract consumers in the region. In addition, innovation in terms of textures, flavors, shapes, and pack sizes supplements the market growth. Private label products continue to hold importance in the European Union and are purchased by families in larger pack sizes, which causes harm to the sales of mid-priced brands. The European market is expected to reach $86.3 billion in 2028, as compared to $69.8 billion in 2021 at a CAGR of 3.4% during the forecast period

Further, the Asia-Pacific region is expected to witness the fastest CAGR of 3.7% during the forecast period. It is majorly due to increasing disposable income, increasing population base, and new brand launches from established players. India and China will be the major contributors to the growth in the region with a CAGR of 5.0% and 3.6% respectively during the forecast period. Moreover, the US is expected to hold a major market share with a revenue of around $46.0 billion in 2028 from $36.8 billion in 2021 at a CAGR of 3.5% during the forecast period.

MARKET PLAYERS OUTLOOK

Major players of the global sugar confectionery market are indulging in strategies, such as product innovation, geographical and product expansions, and mergers and acquisitions, to establish a strong consumer base, and in turn, an esteemed position in the market. Mars, Inc. is the leading player in the global sugar confectionery market. Some of the other major sugar confectionery players include Mondelez, Nestle SA, Ferrero, among others.

The sugar confectionery market includes a wide range of product categories, with opportunities for manufacturers to diversify their products from competitors in each segment. Due to an increase in health awareness, snacks offering health benefits, for instance, with no artificial colors or the inclusion of additives such as vitamins, present new areas of expansion. Though, the sheer number of players and their dependence on the food market increases rivalry levels, established players are less likely to be affected due to strong branding and marketing. This is because consumer preferences pushed retailers to stock popular, well-known products.