According to SIAL Shanghai 2024, the confectionery market size is forecast to increase by USD 64.69 billion, at a CAGR of 4.94% between 2023 and 2028.

The robust expansion of the European market can be attributed to the significant presence of leading confectionery product manufacturers throughout the region. Key players in the European confectionery industry have engaged in strategic collaborations to drive technological innovations and establish a strong market position. Arcor Group, for instance, is a notable contributor to this growth, offering a variety of confectionery products, including ruby chocolates and caramel doré. Through such initiatives and product offerings, companies contribute to the dynamism and competitiveness of the thriving confectionery market in Europe.

Market Growth Analysis Driver

One of the key factors driving the market growth is the rising purchasing power of individuals. Purchasing power can be referred to as the number of goods or services that a certain amount of money can buy and can be an indicator of the current market condition. In addition, rising consumer purchasing power in developing countries like India, China, Brazil, Indonesia, Russia, and South Africa has brought about an expansion of the middle-class population segment, coupled with a rise in consumer expenditure and a shift in preferences, particularly in terms of food choices.

Moreover, in line with this, consumers in these and other developing countries now have the financial capabilities to buy non-essential items, like convenience and RTE packaged food products, which include confectionery. In addition, the rising purchasing power of consumers in these developing economies is an encouraging sign for vendors in the global market. Furthermore, the infrastructure in these countries has significantly developed due to the rapid urbanization rate.  Therefore, this has led to the emergence of various organized retailing outlets, which have made confectionery products easily accessible to consumers. Hence, such factors are driving the market growth during the forecast period.

Market Growth and Trends

A key factor shaping the market growth is the rising demand for organic chocolate. Organic chocolate refers to chocolate that has been certified as organic. In addition, conventional chocolate uses cacao beans and sugar that are cultivated using chemical fertilizers, pesticides, herbicides, and others.

Moreover, the demand for healthy snacking has increased over the past few years because of rising health awareness among the global population. In addition, the demand for healthier snacking has led to the popularity of organic snacks and sugar and chocolate products. Furthermore, the increasing appeal of snacks that are healthier, tastier, and more convenient to eat will increase the consumption of organic chocolates. Hence, such factors are driving the market growth during the forecast period.

Market Challenge

SIAL Shanghai 2024 believes that fluctuations in prices of confectionery raw materials are one of the key challenges hindering market growth. Raw materials including sugar, low-calorie sugar, cocoa liqueur, and other additives are used in the production of confectionery products. However, volatility in the prices of these raw materials may also impact the profit margins of market vendors in a negative way.

Moreover, Cocoa, the main component in chocolate manufacturing, has witnessed fluctuations in prices during the past decade, which has made the cost of chocolate production volatile.  In addition, as chocolate is the largest-selling confectionery product, accounting for nearly 55% of the global market, volatility in cocoa prices has slowed down the growth of the market. Furthermore, Cocoa prices largely depend on growing conditions and can, therefore, fluctuate significantly on a monthly basis. Hence, such factors are hindering the market growth during the forecast period.