The candy market is estimated to be valued at US$ 83.37 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Candy refers to sweet food products made from milk, fruits, nuts and other ingredients. It includes chocolates, gums, and suckers. The market offers variety of candies in different flavors, textures, shapes and packaging catering to different demography. The rising awareness regarding health benefits of dark chocolates and sugar-free candies is fueling the market growth.
Market key trends:
One of the key trends fueling the candy market growth is the increasing demand for healthier options. Consumers are increasingly looking for candies with natural ingredients and lower sugar content. To cater to this demand, market players are introducing sugar-free, low-calorie and protein-enriched candies made from natural sweeteners like honey and fruits. For instance, vegan gummy candies produced from plant-based gelatin are gaining popularity. Similarly, dark chocolates with high cocoa content and nuts are considered healthier than milk chocolates. Companies are also offering candies in smaller pack sizes for portion control. The rising health-consciousness is a major driver augmenting the demand for healthier candy options.
Threat of new entrants: The candy market requires high set up costs for machinery and production facilities which poses significant entry barriers. However, the market is growing steadily attracting new players.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of alternatives and brands in the market. However, customer loyalty towards established brands provides some stability to players.
Bargaining power of suppliers: The supply side is dominated by few raw material suppliers for sugar, cocoa and nuts which gives them significant influence on pricing. However, players can offset this by sourcing from multiple geographies.
Threat of new substitutes: Alternative snacks pose a threat, though candy enjoys customer preference for certain occasions and is relatively affordable. Product innovation helps players protect against new substitutes.
Competitive rivalry: The global market is fragmented with numerous international and local players competing on factors like brand, taste, packaging and pricing leading to intense competition.
Strengths: Strong brand portfolio, innovative product lines, global distribution and economies of scale provide major players an edge.
Weaknesses: Seasonal demand and reliance on few raw materials expose players to supply and demand fluctuations. High advertising and customer acquisition costs reduce margins.
Opportunities: Emerging markets offer high growth potential. Increasing health-consciousness opens opportunities for natural ingredient based products.
Threats: Regulatory changes relating to ingredients and packaging increase compliance costs. Economic slowdowns lower discretionary consumer spending on confectionery.
The Global Candy Market Size is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing disposable incomes and demand for indulgence products globally. The Asia Pacific region dominated over 40% of the market share in 2023 due to high consumption countries like China and India.
Regional analysis: North America followed Asia Pacific as the second largest region supported by strong consumption patterns in the US. Europe held over 20% share led by countries such as Germany and UK. However, Asia Pacific is expected to be the fastest growing region during the forecast period with China, India and Southeast nations propelling growth.
Key players operating in the candy market are August Stork, Candy Me, CartoonCandy, Cloetta Ab, DeMet, Ferrero Group, Ferrara Candy Company, Grupo Arcor, Haribo GmbH & Co. KG, Mars Incorporated, Mondelez International, Inc., Naeemfoods, Purebred Confectionery, Rock Candy, and The Hershey Company. Major players are investing in capacity expansions, acquisitions and new product innovations to consolidate their positions.