by Candy products such as chocolates and chewing gums are widely consumed as snacks and for taste enhancement. Candy products come in various flavors and formulations and provides an enjoyable sugar rush. Manufacturers are focusing on introducing healthier candy products by reducing sugar content or incorporating nutritional ingredients. For instance, sugar-free candy provides similar taste without added sugar. Some candy products are fortified with essential nutrients to appeal health-conscious consumers. The rising demand for low-calorie and nutritional candy products is encouraging manufacturers to innovate and diversify their product portfolio.
The global Candy Market is estimated to be valued at US$ 83.37 Mn in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The candy market is witnessing the trend of product line extensions and innovative flavors. Manufacturers are focusing on developing candy products with unique flavors and formulations to attract customers. For instance, products such as gummy bears, jelly beans, licorice, and soft candies are available in different flavors. Moreover, seasonal and regional flavors are gaining traction. Companies also introduce specialty flavors around festivals and occasions. Besides, clean label candy products manufactured without artificial colors, flavors, or preservatives are becoming popular due to rising health awareness. Manufacturers emphasize on using recognizable ingredients in candy products to cater to health-conscious consumers.
Porter’s Analysis
Threat of new entrants: Medium to high. Existing major players operating globally enjoy the economies of scale which poses entry barriers for new players. However, ease of establishing manufacturing units and lesser regulations provide opportunities for new local players.
Bargaining power of buyers: High. Major players cater to giant retail chains that have significant influence over pricing and new product development. Availability of substitutes also increases buyer power.
Bargaining power of suppliers: Medium. Large players source raw materials like sugar, cocoa, fruits etc. from multiple suppliers globally. However, fluctuations in availability and prices of raw materials give some power to suppliers.
Threat of new substitutes: High. Availability of various substitute snacks and confectionery like chips, nuts, juices poses competition to candy market. Changing consumer preferences also shifts demand quickly.
Competitive rivalry: Fierce. Presence of numerous global and local players leads to high competition. R&D, branding, new product launches are key differentiating factors adopted by players to gain market share.
Key Takeaways
The Global Candy Market Demand is expected to witness high growth.
Regional analysis: North American region currently dominates the candy market accounting for over 30% of market share in 2023. Some of the key factors attributed to its large share includes high per capita candy consumption and strong distribution channels. The Asia Pacific region is expected to witness the fastest growth during the forecast period with China and India emerging as lucrative markets.
Key players operating in the candy market are Accion S.A., Cargill Incorporation, Jost Chemical Co., Nutrena, Tyson Food Inc., Anheuser-Busch InBev NV, Corbion, Henan Jindan Lactic Acid Technology Co Ltd., Land O’Lakes Inc., Provimi, Shenzhen Esun Industrial Co., Ltd., Shaanxi Sciphar Hi-Tech Industry Co. Major players are focused on expanding into untapped markets through partnerships, mergers and acquisitions to leverage opportunities for growth. They are investing heavily in R&D and product innovation to strengthen their product portfolio and meet the dynamic consumer demands.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
