The Candy Market is Estimated To Witness High Growth Owing To Increasing Demand for Healthier Options
The candy market is estimated to be valued at US$ 83.37 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Candy refers to sweet food products made from milk, fruits, nuts and other ingredients. It includes chocolates, gums, and suckers. The market offers variety of candies in different flavors, textures, shapes and packaging catering to different demography. The rising awareness regarding health benefits of dark chocolates and sugar-free candies is fueling the market growth.
Market key trends:
One of the key trends fueling the candy market growth is the increasing demand for healthier options. Consumers are increasingly looking for candies with natural ingredients and lower sugar content. To cater to this demand, market players are introducing sugar-free, low-calorie and protein-enriched candies made from natural sweeteners like honey and fruits. For instance, vegan gummy candies produced from plant-based gelatin are gaining popularity. Similarly, dark chocolates with high cocoa content and nuts are considered healthier than milk chocolates. Companies are also offering candies in smaller pack sizes for portion control. The rising health-consciousness is a major driver augmenting the demand for healthier candy options.
Porter's Analysis
Threat of new entrants: The candy market requires high set up costs for machinery and production facilities which poses significant entry barriers. However, the market is growing steadily attracting new players.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of alternatives and brands in the market. However, customer loyalty towards established brands provides some stability to players.
Bargaining power of suppliers: The supply side is dominated by few raw material suppliers for sugar, cocoa and nuts which gives them significant influence on pricing. However, players can offset this by sourcing from multiple geographies.
Threat of new substitutes: Alternative snacks pose a threat, though candy enjoys customer preference for certain occasions and is relatively affordable. Product innovation helps players protect against new substitutes.
Competitive rivalry: The global market is fragmented with numerous international and local players competing on factors like brand, taste, packaging and pricing leading to intense competition.
SWOT Analysis
Strengths: Strong brand portfolio, innovative product lines, global distribution and economies of scale provide major players an edge.
Weaknesses: Seasonal demand and reliance on few raw materials expose players to supply and demand fluctuations. High advertising and customer acquisition costs reduce margins.
Opportunities: Emerging markets offer high growth potential. Increasing health-consciousness opens opportunities for natural ingredient based products.
Threats: Regulatory changes relating to ingredients and packaging increase compliance costs. Economic slowdowns lower discretionary consumer spending on confectionery.
Key Takeaways
The Global Candy Market Size is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing health consciousness among consumers. Increasing demand for low sugar and sugar-free candy range supports the growth. North America dominates the candy market with around 35% share owing to strong brand presence and availability of wide range of products. However, Asia Pacific is fastest growing market for candy due to rising disposable incomes, growing sweet craving, and increasing exposure to western culture.
Regional analysis
Asia Pacific is the fastest growing region in the global candy market, expanding at a CAGR of around 5.5% during the forecast period. China, India, Japan, and Southeast Asian countries offer immense growth potential. Rapid urbanization, rising middle class, and changing lifestyles propel the demand for candies.
Key players analysis
Key players operating in the candy market are August Stork, Candy Me, CartoonCandy, Cloetta Ab, DeMet, Ferrero Group, Ferrara Candy Company, Grupo Arcor, Haribo GmbH & Co. KG, Mars Incorporated, Mondelez International, Inc., Naeemfoods, Perfetti Van Melle, Purebred Confectionery, Rock Candy, and The Hershey Company.
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