The confectionery market size is set to grow by US$61.7 billion with a CAGR of 4.75% from 2021 to 2026, based on the latest report by Technavio.
China and Japan are identified as the key markets in the APAC region. Growing disposable income in emerging economies such as India and China will facilitate the growth of this market. The chocolate segment is also identified as a major category in terms of revenue generation. It is a matured industry, and to keep up with rapid shift in consumer preferences, manufacturers are launching innovative products with unique flavors like hibiscus, lavender, ginger and alcohol variants. Technavio research also showed that demand for ‘reduced sugar’ variant of chocolate such as dark chocolate, has grown rapidly due to growing consumer health awareness.
With the pandemic affecting global consumers for more than 2 years, they spent more time at home and have more free time to explore and appreciate new flavors. Children, especially are more attracted to various shapes, flavors and packaging of confectionery products. Adults, on the other hand, venture deeper into ingredient contents and the benefits that can be derived from consumption – be it satisfaction in terms of taste, added health benefits, or as a convenient food during busy in-between work break.
Confectionery manufacturers need to invest more in R&D to come up with new products, while at the same time need to focus more on promotional activities and social media marketing, to create brand-specific identities that target specific age group on social media platforms. For example, confectionery products launched by Grupo Bimbo and Nestle targeted at children and teenagers are associated with popular animation characters and video games and depict a 3D animated view of Bimbo Bear. The products are also promoted by creating animated games, which are available on the company’s website, and launching online campaigns that include Call-to-Action for viewers.
Leading companies covered in this research include Baker Perkins Ltd., Barry Callebaut AG, Blommer Chocolate Co., Buhler AG, Crown Confectionery Co. Ltd, Ferrero International SA, Mars Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Nestle SA and Hershey Company amongst others.
