The global candy and chocolate manufacturing market is on track to achieve significant growth over the next decade. According to a recent report by Fact.MR, the market is projected to expand from an estimated value of US$ 245.97 billion in 2024 to approximately US$ 313.33 billion by 2034, reflecting a compound annual growth rate (CAGR) of 2.4%.
Candy and Chocolate Manufacturing Industry Dynamics and Consumer Trends
The confectionery industry has demonstrated resilience amid economic uncertainties and supply chain disruptions. Notably, during the COVID-19 pandemic, there was a marked increase in chocolate consumption. A survey conducted in February 2021 by Cargill’s North America Cocoa & Chocolate team revealed that about one-third of Americans increased their chocolate intake during the pandemic. Furthermore, 72% of respondents indicated that chocolate improved their mood, and 59% felt it provided energy while working from home.
This heightened demand for confectionery products is complemented by a growing consumer preference for premium and diverse offerings. Approximately 55% of global consumers are willing to pay more for products featuring unique flavors, textures, and superior quality. In response, manufacturers are introducing innovative products to cater to these evolving tastes. For instance, in September 2021, Baron Chocolatier launched a range of non-GMO, trans-fat-free, and Kosher-certified bars in the United States, available exclusively at Dollar Stores.
For a comprehensive analysis and detailed insights, the detailed report by Fact.MR is available on the official website.
Health and Wellness Influence
The increasing emphasis on health and wellness is significantly influencing consumer choices in the confectionery sector. Many consumers are adopting healthier eating habits and seeking “better-for-me” options. Cargill’s ChocoLogic study from February 2021 found that 52% of American consumers purchase dark chocolate confections due to their perceived health benefits.
This shift has prompted manufacturers to develop products with health-oriented label claims, including vegan, organic, and paleo options. For example, in October 2021, Cadbury introduced two vegan milk bar flavors—Cadbury Plant Bar Smooth Chocolate and Cadbury Plant Bar Smooth Chocolate with Salted Caramel pieces—in the UK region, aligning with the growing demand for healthier confectionery choices.
Regional Market Insights
The report provides detailed regional analyses, highlighting varying growth patterns across different markets:
- North America: Projected to experience a steady growth rate with a CAGR of 2.16% through 2034. The region’s market size is anticipated to reach significant figures, driven by sustained consumer demand and product innovation.
- East Asia: Expected to achieve a valuation of US$ 22.73 billion by 2034, reflecting robust growth prospects. The increasing urbanization and rising disposable incomes in countries like China and Japan are contributing to this upward trend.
- Japan: Specifically, the Japanese market is forecast to attain a value of US$ 6.36 billion by 2034, indicating steady consumer interest in confectionery products. The market is characterized by a preference for premium and innovative chocolate offerings.
Segment Analysis
The chocolate confectionery segment is poised for substantial growth within the confectionery market, with an anticipated value of US$ 217.28 billion by 2034. This segment’s expansion is driven by continuous product innovation and the introduction of premium offerings that cater to diverse consumer preferences.
Challenges and Considerations
Despite the positive outlook, the industry faces challenges, including rising raw material costs. For instance, cocoa prices have seen significant increases, impacting production expenses. Manufacturers are adopting strategies such as resizing and ingredient adjustments to manage these costs. A report recently revealed that some candy makers use less chocolate in their products amid record cocoa prices.
Future Outlook
The global candy and chocolate manufacturing industry is set for steady growth, driven by evolving consumer preferences, health and wellness trends, and regional market dynamics. Manufacturers that adapt to these trends by offering innovative and health-conscious products are well-positioned to capitalize on the expanding market opportunities in the coming decade.
For a comprehensive analysis and detailed insights, the full report by Fact.MR is available on the official website.