The global candy market is one of the fastest growing confectionery segments owing to its inherent properties to sweeten moments of celebrations, offer mid-meal enjoyment, or serve as a tasty treat. Candy comes in diverse forms from chocolate bars, hard candies, gums and mints providing consumers flexibility to choose from myriad flavors, textures and formats suiting their taste preferences and consumption occasions. With candy being increasingly perceived as an affordable luxury, its demand has considerably grown across both developed and developing regions. The global candy market is estimated to be valued at US$160 Billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the global candy market is the rising popularity of healthier candy options. Consumers are increasingly health-conscious about their dietary choices and prefer lowering sugar consumption. To cater to this demand, candy manufacturers are innovating their product lines by utilizing natural sweeteners like stevia, developing sugar-free variants or incorporating qualities like low calories. For example, companies offer candy made using fruits and nuts providing nutrition along with taste. Similarly, products advertising clean label credentials through absence of artificial preservatives or colors are gaining traction. Such candy lines promote occasional indulgence without compromising on wellness, thereby boosting the market.
- Threat of new entrants: Medium threat as candy market is highly fragmented with presence of small and large players. However economies of scale provide advantage to existing large players.
- Bargaining power of buyers: High bargaining power of buyers due to availability of substitutes like cookies, chocolates etc. Buyers can easily switch to other snacks items.
- Bargaining power of suppliers: Low bargaining power of suppliers as raw materials required in candy making like sugar, nuts etc. are commoditized and available from numerous suppliers globally.
- Threat of new substitutes: High threat from other snacks items which can be treated as substitutes like cookies, chocolates etc. Innovation is high in these categories.
- Competitive rivalry: High competitive rivalry among players due to presence of numerous global and regional players offering variety of candy products. Price wars and promotional activities are common.
The global candy market is expected to witness high growth over the forecast period of 2024 to 2031.
The North America region currently dominates the global candy market supported by high candy consumption especially in US. Countries like US, Canada and Mexico offer vast growth opportunities.
Key players operating in the candy market are Mars Inc, Mondelez International, Nestle SA, Ferrero Group, Meiji Holdings Co. Ltd. Mars Inc leads the global market followed by Mondelez and Nestle. These companies offer comprehensive range of products in segments like hard-boiled candies, lollipops, and chocolate candy to capture major market share. They focus on expansion in high growth regions through acquisition and new product launches.