Date : August 31, 2022
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Sugar-free candies to drive the growth of sugar confectionery market over USD 65 Billion by 2027: Bonafide Research

Sugar-free candies to drive the growth of sugar confectionery market over USD 65 Billion by 2027: Bonafide Research

Sugar confectionery is a non-age-restricted product that satisfies taste buds. Over the years, it has grown exponentially. Consumers' habits are undergoing a deep change with respect to their diet and health. Because of the rise in lifestyle disorders such as diabetes, high blood pressure, obesity, and being overweight, it has become a serious concern and a market restraint. As a result, consumers are shifting preferences towards sugar-free candies that are low in calorie count. The growing health focus has led to reduced levels of sugar intake among consumers. Thus, demand for sugar confectionery is expected to drive future growth of the market. Further, the infusion of various organic ingredients and natural flavours into these sugar-free candies adds to the market demand.

According to the research report, "Global Sugar Confectionery Market Outlook, 2027," published by Bonafide Research, the sugar confectionery market is expected to be growing at a forecast CAGR of 3.83% over the next few years. It is growing at a steady pace on account of high demand from middle-class consumers. The introduction of innovative products with varied flavours and ingredients, along with the rising gifting trend, is expected to drive further demand. The rising population in the emerging economies of China and India is expected to augment market demand. Major players are heavily investing in advertising and promotional activities to enhance their brand position in consumers' minds. The volatile prices of raw materials impact the final product price, which acts as a restraining factor. Stringent government regulations with quality standards and supply chain disruptions caused by the pandemic are expected to act as a market restraint. The high cost of research and development activities will further act as a growth hampering factor. Other factors like rising incidences of diabetes and obesity, which are increasing globally. Limited edition sales strategy by leading players introduced for a short period of time helps them attain consumer attention and increase sales. The limited-edition sugar confectionery products help market players gain momentum in consumer minds and indulge them in impulse buying. Like Hershey's, launched a sugar bar in February 2022 called "Celebrate SHE" bar in which the centre of the sugar bar was highlighted by SHE.

The United States is the leading country in the sugar confectionery market, but Europe is the global leader. The number of health and dental problems is on the rise in the young populace as a result of the fact that the adult age group leads the sugar confectionery market. However, in Canada, it is the opposite, as children aged 1–20 years lead the demand for sugar confectionery in the North American region. The Hershey Company and Mars Incorporated belong to this region, which is a prominent player globally. The industry faces a sugar tax, which dampens the growth. In Canada, the art of crafting sugar confectionery is focused in Ontario, Quebec, and British Columbia.

Europe is a well-established market in sugar confectionery. It has a large number of manufacturers that continuously strive for a better market position for their brands. One of the new entrants in the region is vegetable-flavoured sugar confectionery, of which citrus flavours are extremely popular. Since the populace is more focused on healthy eating habits, the sugar-free segment is expected to perform well over the next few years. Germany leads the region with nearly 17% market share, which is expected to grow rapidly over the forecast period.

Asians love sweets as much as they love their spices. Every occasion demands a special sweet dish preparation. Traditionally, the sweets were prepared at home before festivals, special days, gatherings, or marriages. But with changes in lifestyles, the traditional sweets have been replaced by ready-to-eat sugar sweets that are readily available in the market. The fast-paced lifestyle restricts consumers from indulging in sweet preparations ahead of time. This is supported by the improving living conditions of Asians over a period of time.

Sugar confectionery is facing challenging times in Latin America, with a difficult economic situation in several countries, growing consumer health concerns, and new laws that affect sugar consumption. Companies need to use innovative strategies to establish their sugar brands among the consumers in the region. Companies are focusing on these traditional retailers and are also expanding their promotional activities to attract local buyers. However, with a large number of small-scale confectionery makers popping up in the region, they opt for an online sales channel for their product distribution. Apart from this, the region has high profitability from the street kiosks, which trigger the impulse buying instincts of the buyers. Even though during the studied period, the Brazilian market went through considerable economic difficulties, it still leads the market. This immense share of the country can be attributed to the rising middle-class population and the increase in export trade. This has been further complicated by the prohibition of marketing activities of products high in sugar, sodium, or calories within the school premises.

The Middle East and Africa are at the bottom of the sugar confectionery market, with Africa being a highly price-sensitive country. The region poses as one of the highest potential markets for the coming period, given its location and the high spending capacity of the people. With many international brands planning to expand their product portfolio here, it is likely to allow the market to grow at 6.71% in the forecast period. The leading marketers in the region are highly focused on differentiating themselves from the local manufacturers. Much like the global trend, the sugar-free confectionery segment is likely to be the fastest-growing segment. The region is heading towards the adoption of clean labels, with more liking for all-natural or preservative-free products. The leading international companies are investing heavily in point of purchase promotions in the region.


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Sugar-free candies to drive the growth of sugar confectionery market over USD 65 Billion by 2027: Bonafide Research

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