Global Confectionary Market - 2021-2028
Confectionery is a category of food products made with sugar or carbohydrates. These are majorly divided into three categories: chocolate confectionery, sugar confectionery, and bakers' confectionery. The Global Confectionary market is expected to grow at a CAGR of 4.2% during the forecast period.
Confectionary products have undergone an evolution with many of these coming with extra nutritional benefits that might attract people to increase consumption of certain products which were earlier termed unhealthy. Consider dark chocolates, they are regarded as a healthy snack due to the rich nutrient content and potential to reduce the risk of heart disease. Epidemiologists all over the world recommend dark and milk chocolate consumption for heart health, citing clinically proven and study-based data. According to data, in 2015, the global dark chocolate market was valued at approximately 34 billion U.S. dollars, and reached around 52 billion U.S. dollars in 2019, and this value is expected to grow during the forecast period. According to a study conducted by Harvard Medical School on 21,000 English residents in 2019, consumption of up to 3.5 ounces of chocolate per day reduced the risk of heart disease in adults. Yogurts are also a type of confectionary product that comes with various health benefits. Because yoghurt is made from milk, it contains calcium and vitamin D, which are the two most important nutrients for bone health, according to the National Osteoporosis Foundation. An 8-ounce serving of plain, low-fat yoghurt contains 415 milligrams of calcium, which is 42% of an adult's daily requirement. According to data, probiotic yogurts held over 90% of the global yoghurt market share in 2019, and it is expected to rise during the forecast period.
Confectionary products come off as attractive, nutritious and tasty, which persuades more and more people to buy these products. For instance, in 2020, according to data, nearly 30% of Canadians said they bought chocolate a few times a month, making it the most popular purchase in the country. According to data, the global chocolate market grew by approximately 29 billion US Dollars in 2020 from 2019, with an increase predicted during the forecast period. Consider the case of Yoghurts, due to a rise in digital advertisements all over the world, companies manufacturing these products have successfully communicated the health benefits of yoghurt consumption to a global audience. According to data, the global yoghurt market was worth around approximately 41 billion US Dollars in 2019, with this number expected to grow during the forecast period. Confectionary spending in the UK increased by over 50% in the past decade, with the market value being approximately 13.5 billion British pounds in 2019.
The factors restraining the Global Confectionary market are the growing awareness against consumption of excess sugar and other health problems that are caused due to excess consumption of confectionary products.
COVID-19 pandemic has impacted countries all over the world, including the confectionary market, on a global scale. As more and more people are adjusting towards the Work from home life, the consumption of food products has increased. Since staying home all day yields no real physical work, consumers all over the world are looking towards food items with nutritional values, such as dark chocolates, yoghurt, to maximize the consumption along with a few health benefits. According to data, the Global chocolate confectionary market has observed an increase in market value. In 2019, it was valued at approximately 178 billion US Dollars, and increased to over 208 billion US dollars in 2020. The market value is expected to grow during the forecast period.
The Global Confectionary market is segmented into Product Type, Distribution Channel and Region.
The Global Confectionary market based on Product type is segmented into Sugar Confectionary, Bakers' Confectionary and Chocolate Confectionary.
Sugar confectionery became the largest segment of the global confectionery market due to the large market for hard candies around the world. Sugar confectionery is widely accepted and preferred by almost all demographics, and this segment is expected to maintain its market dominance over the forecast period. However, due to the growing demand for chocolate products due to their low sugar content and health benefits, chocolate confectionery has emerged as the fastest-growing segment. During the forecast period, chocolate confectionery is expected to grow at a lucrative CAGR of more than 6 percent. Chocolate consumption was the highest in Russia in 2020, which held approximately 11% of the total market share. For instance, chocolate sales in the UK in 2019 were almost over 146500 thousand kilograms, which was a significant increase from the 125000 thousand kilograms that was manufactured and sold in 2017.
The Global Confectionary market based on Distribution Channel is segmented into Supermarkets & Hypermarkets, Bakeries, Convenience Stores, Online and Others.
The Global Confectionary market based on Region is segmented into North America, Europe, South America, Asia-Pacific, Middle East & Africa.
Confectionery has been a well-established market in most American and European countries for decades. According to data, in 2020, the top 10 importers of cocoa beans were as follows: USA imported cocoa beans worth 1000 million US Dollars followed by Germany with 780 million dollars' worth imports followed by France, UK, Italy. Because cocoa and other confectionery ingredients were readily available, they were early adopters of sugar and chocolate confectionery products. Europe had the largest confectionery market, with a share of more than 35% in 2018. The high per capita consumption of chocolate in countries such as Switzerland, the United Kingdom, Sweden, Germany, and Ireland is fueling the expansion of Europe's confectionery market. The North American market for confectionaries is expected to grow at the highest CAGR during the forecast period, majorly due to growing consumption of confectionaries specially chocolates in USA and Canada. According to data, the United States of America was the highest consumer of all kinds of confectionary products in 2020, with market value amounting to approximately 10 billion US dollars. Research shown by Statista states that over 10 kilograms of chocolates were consumed per person by a United States consumer, an increase of 6 kilograms from 2019. According to data, in 2020, sales of chocolate items weighing less than 3.5oz generated approximately 5 billion US dollars in the United States. Snack-size chocolate item sales totaled approximately 1 billion US dollars. According to data, in 2020, the top 10 importers of cocoa beans were as follows: USA imported cocoa beans worth 1000 million US Dollars followed by Germany with 780 million dollars' worth imports followed by France, UK, Italy.
The global confectionery market is highly fragmented, with a large number of players producing a diverse range of confectionery products. Key players in the market include, Ferrero SpA, Nestle, Parle Product Pvt. Ltd, Mars, Lotte Confectionary, Delfi Limited, Grupo Arcor and many more. To increase their market share and maintain competitiveness, key market players are leveraging acquisitions, mergers, and new product launches. For example, in 2019, the diversified group ITC launched the world's most expensive chocolate under its Fabelle brand, priced at Rs 4.3 lakh per kilogram For example, in April 2018, Ferrero SpA, an Italian chocolate and confectionery products manufacturer, acquired Nestle's confectionery business in the United States, thereby expanding its confectionery product portfolio in the North American market.
Company Overview: Nestle is a multinational food and beverage corporation. It is present in 187 countries worldwide, and its 291,000 employees are dedicated to Nestle's mission of unleashing the power of food to improve quality. The company was founded in 1959 and is headquartered in Gurgaon, Haryana.
Product Portfolio: The company specializes in manufacturing products such as baby foods, chocolate and confectionaries, ice creams, Dairy, coffee and much more.
Recent Developments: 1) Nestle announced in July 2021 that it has joined more than 50 other companies and industry bodies in a European initiative to make food more sustainable. The EU Code of Conduct for Responsible Business and Marketing Practices outlines actions that food producers, food service providers, retailers, and others can take to facilitate healthy and sustainable food choices.
2) Nestle brand Nespresso will begin expanding its production centre in Romont, Switzerland, in June 2021. The CHF 160 million investment in this new structure will help meet rising consumer demand for Nespresso's high-quality premium coffees while also supporting international growth in the coming years.