Confectionery Market By Product Type (Sugar Confectionery {Candies, Jellies, Lollipops, Others} Chocolate Confectionery {Milk Chocolate, Dark Chocolate, White Chocolate, Others} Gum Confectionery {Chewing Gum, Bubble Gum, Others} Bakery Confectionery {Cookies and Biscuits, Cakes and Pastries, Donuts, Others} Others), By Flavour (Sweet, Sour, Salty, Mint, Spicy, Others), By Distribution Channel (Online, Offline, Direct Sale), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Confectionery market accounted for USD 210.6 Billion in 2024 and is expected to reach USD 317.4 Billion by 2035, growing at a CAGR of around 3.8% between 2025 and 2035.  The confectionery industry refers to the production and retail sale of sweets and other confectionery such as chocolates, candies, gums, biscuits, and other sugar products. This is a colorful business since almost every consumer has different preferences, from traditional products such as chocolate bars and gummies to more specific ones like sugar-free, vegan, and organic confections.

Drivers of the market include changes in consumer preferences, rising demand for healthier options, and product development about flavors and packaging. Confectionery products are generally sold through retail outlets, supermarkets, convenience stores, and more recently through e-commerce. Seasonal occasions, gifting, and premium offerings also elevate the market. Trends that will evolve the industry in the future are as follows Sustainability-conscious trends, Health-conscious trends, Clean-label and allergen-free.

Report Scope:

Market Dynamics

• Rising Demand for Premium and Gourmet Confectionery Driven by Consumer Preferences for Quality and Ethical Sourcing

Premium and gourmet products are driven due to growing consumer interest in quality, artisanal foods, with a particular drive in the confectionery sector. The U.S. National Confectioners Association (NCA) reports that gourmet chocolate continues to grow at a rate of 6-8% annually within the U.S., and premium chocolates are selling higher than their previous levels. Consumers want indulgent treats, made with superior-quality ingredients and unique flavors, often as gifts or luxury items. Further, more and more consumers have higher disposable incomes and a desire for more sophisticated food experiences.

Governments have listened to these trends enacted initiatives and provided funds that support small-batch and artisanal food producers. More and more, consumers seek ethically sourced and sustainable products, with many favoring those who support fair trade practices and who pay serious attention to sustainable production methods.

• Boosting Confectionery Sales Through Seasonal and Gifting Demand

Confectionery products experience seasonal and gifting demand during Valentine's Day, Christmas, Easter, etc., and special occasions are the periods when most consumers are likely to purchase gifts for others, usually candies and chocolates.

NRF estimates show that U.S. consumers spent almost $25.9 billion on Valentine's Day in 2023, thus putting holiday events under the limelight in terms of what drives confectionery item sales. Similarly, Easter is another significant influencer, as the NRF reported over $3 billion to be spent on candies alone every year.

These increases in expenditure are symbolic of cultural and consumer habits to gift confectionery items during these celebrations. With these festivals gaining more importance, confectionery brands are also adjusting their offerings as well as promotion techniques by the seasonal demand. The trends include limited-time promotions and themed packaging, which might encourage consumers to make impulse purchases by driving overall sales for a period during the key gifting seasons.

• Impact of Raw Material Price Volatility on Confectionery Market Demand and Production

Market performance is likely to be influenced by variations in the prices of mainly raw materials, such as cocoa and sugar. Both ingredients are extremely important in most confectionery production all over the world. however, their prices have not been stable of late. Production can be affected by weather, crop diseases, labor shortage, and by market-related imbalances of supply and demand.

For instance, the price of cocoa beans and sugar tends to be highly volatile, sometimes resulting in too much of one item and a shortage of another. The volatility in raw material cost would likely cause this whole market to see a dent in demand over the next couple of years. It would increase the cost for the producers. That could make them pass it on to the customers and the customers will decrease their volume of consumption as well. These uncertain prices may bring about a change in consumer preference and production strategies within confectionery.

• Rising Demand for Allergen Free Confectioneries as a Growing Market Opportunity

High demand for allergen-free foods is one of the critical market opportunities in confectioneries. According to the FARE (Food Allergy Research & Education) organization, around 32 million Americans suffer from food allergies and 1 child suffers from this illness out of 13 children. Gluten sensitivity and the rate of lactose intolerance are also growing, around 3 million people are suffering from celiac disease in America while millions of others avoid dairy products due to health reasons.

Statistics available from the Centers for Disease Control and Prevention (CDC) indicate a whopping 18% increase in food allergies over the last decade. With allergen-free foods increasingly in demand, particularly in the confectionery industry, there is an open gap in the market, ideally to be filled by safe indulgences fitting into these diets.

• Rising Health Concerns Fueling the Demand for Functional Sweets in the Confectionery Market

The market for confectionaries is highly related to the advancement of health concerns among the population. Due to this, the confectionery market is getting a tremendous platform where sweets can be served with an enhanced level of health benefits.

According to the National Center for Health Statistics, 58.5% of adults in the United States used dietary supplements between 2017 and March 2020, this aligns with other trends of seeking health-boosting products. Moreover, the Centers for Disease Control and Prevention are seeing rising prevalence rates in chronic conditions such as stress, digestive problems, and weakened immunity.

That is an enormous opportunity for the confectionery industry to innovate into the space of functional candies or chocolates, which will support health, such as adding immune-boosting, digestion-aiding, or stress-reducing ingredients, tailoring them toward indulgent consumers who care about their well-being.

Industry Experts Opinion

"This unique candy is a vibrant evolution from the iconic Tic Tac mint, and we cannot wait to get it in the hands of candy enthusiasts everywhere as we shake up the category with this flavorful offering."

• Dan Cutchin, Vice President of Marketing at Ferrero USA.

"We know candy corn is always a hotly debated topic come this time of year, and in fact, our recent survey uncovered many Americans who plan to celebrate the fall season (72%) agree people have polarizing opinions about candy corn"

• Chad Womack, Director of BRACH'S Seasonal Marketing at Ferrara Candy Company.

Segment Analysis

Based on product type, the confectionery market is divided into sugar confectionery, chocolate confectionery, gum confectionery, and bakery confectionery. Chocolate confectionery is the leading segment, driven by its broad appeal and premium positioning in the market.

The confectionery market is divided into flavors such as sweet, sour, salty, mint, spicy, and others. Sweet flavors lead the market due to their broad appeal and widespread consumption across various product types.  

Regional Analysis

North America is the world's largest market for confectionery, led by higher demand for chocolates, candies, and seasonal products. Consumers in the United States are indulging heavily in confectionery. The market also finds preferences among consumers who demand both traditional and premium products. Still, the industry is changing in response to healthy alternatives and consumers' increasing awareness of health conditions, incorporating sugar-free, organic, and functional confections in their lives.

The retail network for the region is well-developed, comprising supermarkets, convenience stores, and a fast-growing e-commerce channel through which these sweets are readily available to the population. Innovation in flavors, packaging, and products continues to support growth in what is already an economically mature market.

The Asia-Pacific confectionery market is the fastest-growing region, with countries like China and India leading the charge. Changes in consumer preference, rapid urbanization, and increases in disposable incomes will bring about demands for confectionery products. Traditional sweets, used traditionally in the region, are predominantly popular, however, Western-style confectionary items like gum and chocolates are also gaining speed.

Other growth levers on which the market is relying include new retail outlet proliferation and e-commerce sites, which have facilitated the reach of a broad spectrum of confectionery products to people. Premium products and novel flavors would become even more crucial growth drivers in this region because consumers would look for newer, exciting experiences in the confectionery category.  

Competitive Landscape

The High competition is primarily due to the leading players in the confectionery industry, Mars, Nestlé, Hershey, and Mondelēz, that was seen lately when the industry is drifting more towards a healthy production line, companies are launching candies based on plants and sugar-free while Nestle and Mars Wrigley are expanding their portfolios through the creation of low-sugar products. Sustainability is also the main focus area; Ferrero has recyclable packaging while Lindt is putting investments in the sustainability of cocoa sourcing.

Premium, clean-label, and allergen-free products are adding to favorable growth, but no less important is the surging demand for these premium products. Digital sales channels are also gaining pace in the market as companies like Mondelēz are investing further in e-commerce platforms to reach wider consumer bases. Innovations in flavors, such as exotic or functional ingredients, serve as avenues for brands to change consumer tastes and target niche markets for further growth within the confectionery sector.

Confectionery Market, Company Shares Analysis, 2024

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Recent Developments:

• In September 2024, M&M'S® unveiled its latest innovation, Peanut Butter & Jelly, the brand's first new flavor since 2022. This treat combines berry-flavored chocolate with a smooth peanut butter center, offering a nostalgic twist on the classic PB&J sandwich.
• In September 2024, Tic Tac® Chewy, the first-ever sugar candy under Ferrero North America's portfolio, became available in candy aisles across the U.S. The new product offers a unique texture experience, combining the beloved Tic Tac brand with a chewy consistency.
• In May 2024, Frankford Candy unveiled new collaborations at the Sweet & Snacks Expo, featuring Baskin-Robbins ice cream-themed confections and Nickelodeon's SpongeBob SquarePants Krabby Patties. The new treats were set to be available online and in stores starting August 2024.

Report Coverage:

By Product Type

• Sugar Confectionery
  • Candies
  • Jellies
  • Lollipops
  • Others
• Chocolate Confectionery
  • Milk Chocolate
  • Dark Chocolate
  • White Chocolate
  • Others
• Gum Confectionery
  • Chewing Gum
  • Bubble Gum
  • Others
• Bakery Confectionery
  • Cookies and Biscuits
  • Cakes and Pastries
  • Donuts
  • Others
• Others

By Flavour

• Sweet
• Sour
• Salty
• Mint
• Spicy
• Others

By Distribution Channel

• Online
• Offline
• Direct Sale

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Mars, Inc.
• Nestlé S.A.
• Hershey
• Mondelēz International
• Ferrero Group
• Lindt & Sprüngli
• PepsiCo
• General Mills
• Coca-Cola
• Meiji Holdings
• Haribo GmbH & Co. KG
• Mars Wrigley
• Perfetti Van Melle
• Kinder
• Barry Callebaut

Frequently Asked Questions (FAQs)