Sweet tooth and confectionery items have remained a staple for many households. It is also an increasingly popular category for innovation and growth, mainly as it tends to be an aisle consumers lean towards for snacking, which has generally increased over recent months.
According to new research, the global confectionery market is anticipated to reach a value of USD 237 million in 2023, with a projected CAGR (compound annual growth rate) of 7.3 percent, which will propel the market to a value of USD 483 million by 2033. This growth is driven by the increased advancement of the food and beverage sector, where there was a recorded CAGR of 2.6 percent for confectionery between 2018 to 2022 compared to the forecast period ahead.
Confectionery is a culmination of various recognisable products, including chocolates, candies, caramels, toffees, cookies, lollipops, and many others, rich in sugar and sweet content. With confectionery, the growing health-conscious consumer has driven the growth of sugar-free confections.
Further included in the confectionery categories are ingredients and food items such as cocoa, honey, nuts, fruits, milk, sugar, and many more consumed globally in developed and developing countries.
The confectionery market is expected to witness significant growth in the Asia Pacific, especially in the South East Asia countries, with consistent growth in the past few years.
Factors for this region's growth can be attributed to the rise in demand for confectionery items like chewing gum and consumers' increased buying power within the region, with India and China being two countries with lucrative growth opportunities.
Secondly, the expanding westernisation and increased knowledge about the health benefits of dark chocolates have also propelled the growth of the Asia-Pacific confectionery market.
Confectionery, such as sugar-free candies or chocolates, is anticipated to significantly influence the growth of the confectionery market over the forecast period, again due to increased consumer awareness of the health benefits associated with the consumption of low-calorie content. To create sugar-free alternatives, manufacturers have begun turning to sweeteners, as health trends have fostered an environment where ingredients are being interchanged for lower calorie options while also influencing how manufacturers package products.
Consumers' busier lifestyles have boosted demand for confectionery, with those with more hectic lifestyles turning to confectionery products as they are convenient and can be consumed quickly and efficiently.
However, the global confectionery market will decline in growth due to the health-conscious consumer. Also, diversity in consumer spending habits will decrease the industry's growth as consumers' brand loyalty and cost of living have altered under current economic conditions, with value taking precedence.
The fluctuation in the prices of raw materials needed for producing confectionery items is another factor that will stunt growth, as well as the awareness of the increase in fat and calories and the increased risk of obesity and diabetes.