(Food-Beverage-News.Com, November 19, 2021 ) Confectionery Market size is estimated at $217 billion in 2020, projected to grow at a CAGR of 3.8% during the forecast period 2021-2026. Confectionery are the products used in making items like hard candies, chocolates, cookies, and chewing gum. Cocoa powder, dairy ingredients, emulsifiers, stabilizers and thickeners (EST), malts, oils & shortenings, sweeteners, starch & derivatives, and flavors are among the most popular confectionery ingredients. Confectionery industry has witnessed huge demand owing to the increasing demand for ready-to-eat food in the market. Moreover, in order to improve the texture, mouthfeel and stability of the product hydrocolloids are used as the gelling agent, thickening agent and stabilizers in confectionery. Increased demand for sugar-free products as a result of rising consumer health consciousness has compelled confectionery manufacturers to research and develop new confectionery products, which has aided the confectionery industry's development. Furthermore, the increasing preference for natural ingredients among confectionery manufacturers has provided an advantageous demand for confectionery suppliers thereby driving the Confectionery Industry.
Confectionery Market Segment Analysis – By Ingredient Type:
Based on Ingredient Type, Cocoa powder & Chocolate segment accounted for the largest revenue market share in 2020. This is majorly attributed to its diverse applications, not just on confectionery but also in baking like cookies, food processing and food technology. Moreover, the antioxidant property of cocoa helps in controlling cholesterol and sugar levels. As cocoa is rich in polyphenols, it helps in improving blood pressure, minimizing the risk of heart strokes and therefore appeal to customers who prefer wholesome foods. Sweeteners are predicted to grow with the fastest CAGR of 3.9% in the forecast period 2021-2026. Sweeteners are food additives used to enhance the flavor of a number of foods. Many natural sweeteners add to the benefit of sugar. Aware calorie consumers tend to eat without weight loss. As they add sweetness without adding a lot of extra calories. Almost no calories are present in many of these. The use of sugar alternatives helps to avoid tooth decay as well thereby, driving the Confectionery Market
Confectionery Market Segment Analysis – By Application:
Based on Application, Chocolate segment has accounted for largest revenue market share in the year 2020. Chocolates contain high levels of antioxidants Some studies have indicated that chocolate can decrease cholesterol and prevent deterioration in memory. Sugar confectionery is anticipated to grow with the fastest CAGR of 4.2% in the forecast period 2021-2026. This is mainly attributed to the rising demand for various forms and colors of candies globally. In developing countries like Brazil and India and in countries with historically low sugar consumption, like China and Japan, confectionery consumption is increasing. Chocolate and cookies consumption is rising as more wealthy societies emerge. Sweets consumption in more developed countries has remained relatively flat year over year, and in some cases has decreased, assisting the Confectionery Industry's growth.
Confectionery Market Segment Analysis – By Geography:
Based on Geography, Europe Confectionery Market accounted for the 36% revenue share in 2020. This is majorly attributed to the established industries in this region, moreover it offers top quality confectionery globally. According to the Ministry of Foreign Affairs, Europe is a very diverse market for cocoa, which makes it very interesting. It has a thriving chocolate processing and manufacturing industry that needs large quantities of cocoa beans. Although the industry processes a lot of bulk cocoa, demand for specialty cocoa is on the rise. For the European cocoa industry and European chocolate consumers, sustainability is a critical problem. Since manufacturers in this region are focusing on developing benchmark items, Asia-Pacific is expected to be the fastest expanding market throughout the projected period 2021-2026. Owing to the steady increase in demand for candy products and cookies as a result of increased disposable income, procurement power, and industrialization in China and India, the range of confectionery has significantly expanded. Further, owing to the appropriate weather and operating benefits regional demand is anticipated to expand. Ease of business and wide range of application are also prominent factors in the Asia-Pacific economy which drive demand for confectionery Industry.
The global confectionery market is expected to be driven be the rising demand for sugar free products such as obese and diabetic cakes, the industrialisation, increased purchasing power per capita and the use of color naturally derived from specific color emulsion technology. Moreover, the growth of the world's cakes market will be fuelled by increased health awareness, evolving eating habits, lifestyle and innovation in products. Moreover, diabetic cases have also provided a huge chance for sugar-free products like dark chocolate & cookies. The U.S. Department of Health and Human Services reported that in 2018, in the United States 34.2 million people had diabetes. It was also found that the proportion of diabetes adults is increasing with age. Unlike 26.8% of the population aged 65 years or over, 21.4% of all US adults 18 years old or older suffered from diabetes. All these factors aids to the overall confectionery Industry growth. Also, owing to the complicated issues that the food supply chain faces, food retailers are requesting certificates from their suppliers, according to the Global Food Safety Initiative (GFSI).
Confectionery Market - Challenges
Fluctuating Cocoa Prices:
Fluctuations in the price of cocoa, as well as quality standards and norms for confectionery raw materials, are major market constraints. As people strive for a healthy lifestyle, the market for low-calorie foods is expected to rise. This pattern could stifle the market's expansion. For instance, honey's popularity as a primary component in confections among health-conscious consumers, owing to its natural sweetness, is impeding the market's growth.
Confectionery Market - Landscape:
The Confectionery Market's main strategies include product launches, mergers and acquisitions, joint ventures, and regional expansion. Confectionery Market top 10 companies are Arla Foods, Cargill, Inc., Archer Daniels Midland Company, Olam International, Ingredion Inc., E.I. du Pont de Nemours and Co, Kerry Group plc, Barry Callebaut, Tate & Lyle plc and Koninklijke DSM N.V.
In November 2019, Olam International has acquired Dangote Flour Mills Plc, a pasta manufacturing company. This has aided in the growing demand for chemical-free and organic goods among consumers
In January2019, Barry Callebaut, one of the world’s leading manufacturer of the high quality cocoa products has acquired Inforum, one of the leading Russian B2B manufacturer of chocolate, fillings, compound coatings.
Confectionery Market growth is being driven by an increase in demand for non-carbonated drinks owing to the increasing demand for gluten-free, clean, low-calorie, and low-carbon drinks.
Geographically, Europe Confectionery Market held the largest revenue share of 36% in 2020 owing to the growing customer preference for various applications in the region. The scope of the Confectionery Market for various regions will be provided in the final report.
The increasing demand for sugar free products, ready-to-eat products are driving the Confectionery Industry.
The demand for items such as bread, cake, and cookies is rising rapidly, and the confectionery market is expected to rise as a result.
However, regulations for the use of confectionery products in order to maintain international quality standards, volatile cocoa costs, and uncertainty about use due to health concerns are all holding the industry back.
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