Confectionery ingredients comprise a diverse array of components such as sugars, chocolates, flavorings, and emulsifiers. These elements, when skillfully combined, create a wide range of delightful sweets, candies, and chocolates.
The Competitive Landscape of the Confectionery Ingredients Market is shaped by a mix of well-established industry leaders and emerging players, collectively contributing to the dynamic and evolving confectionery sector. As of 2023, key players in the market have strategically positioned themselves to address consumer demands for diverse, innovative, and high-quality confectionery products.
Key Players:
Cargill Incorporated (US)
Archer Daniels Midland Company (US)
DuPont (US)
Kerry Group Plc (Ireland)
Arla Foods (Denmark)
Tate & Lyle PLC (UK)
Olam International (Singapore)
Barry Callebaut (Switzerland)
Ingredion Incorporated (US)
Koninklijke DSM N.V. (Netherlands)
AAK AB (Sweden)
Strategies Adopted:
The Confectionery Ingredients Market revolve around product innovation, sustainability, and strategic partnerships. Product innovation involves introducing new ingredients, flavor profiles, and formulations to meet changing consumer preferences. Sustainability practices, such as responsibly sourced cocoa and palm oil, are increasingly important for consumer trust and meeting environmental standards. Strategic partnerships with confectionery manufacturers and retailers enhance market reach and provide insights into evolving market trends.
Market Share Analysis Factors:
The Confectionery Ingredients Market is influenced by factors such as brand reputation, product quality, pricing, and distribution efficiency. Companies that consistently deliver high-quality ingredients and have a strong brand presence often gain a competitive advantage. Pricing strategies involve finding the right balance between offering premium ingredients and maintaining affordability for a broader consumer base. Efficient distribution networks, partnerships with confectionery manufacturers, and an effective online presence contribute significantly to market share growth.
New & Emerging Companies:
New and emerging companies in the Confectionery Ingredients Market contribute to the competitive landscape by exploring unique formulations, clean-label ingredients, and health-conscious alternatives. Start-ups such as Beneo and Cémoi have entered the market, emphasizing natural and healthier confectionery ingredient options. While these companies may initially have smaller market shares compared to industry giants, their emphasis on clean-label trends and consumer health consciousness makes them noteworthy contributors to the market's diversity.
Industry Trends:
Industry trends provide insights into ongoing developments within the Confectionery Ingredients Market. A notable trend in 2023 is the increased focus on plant-based and alternative ingredients. Key players are investing in research and development to introduce confectionery ingredients that cater to the growing demand for plant-based and vegan products. Additionally, investments in sustainable sourcing practices and eco-friendly packaging align with broader industry trends toward environmental responsibility and meeting consumer expectations for ethically produced confectionery.
Competitive Scenario:
The Confectionery Ingredients Market remains dynamic, with companies adopting diverse strategies to gain a competitive edge. There is a notable emphasis on digital marketing and social media engagement, with companies leveraging online platforms to showcase new product launches, share confectionery recipes, and engage with consumers directly. Additionally, companies are exploring opportunities for geographical expansion, targeting regions where the demand for premium and specialty confectionery ingredients is on the rise.
Recent Development
The Confectionery Ingredients Market is the increasing interest in functional ingredients. Key players have introduced confectionery ingredients enriched with functional properties such as probiotics, vitamins, and minerals, aiming to align with consumer trends toward healthier indulgence. This development reflects the industry's recognition of the evolving consumer mindset, which seeks confectionery products that not only satisfy cravings but also offer added health benefits.
The Confectionery Ingredients Market Size was valued at USD 80.9 billion in 2022. The confectionery ingredients market industry is projected to grow from USD 86.32 Billion in 2023 to USD 127.37 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.7% during the forecast period (2023 - 2030). The key market drivers boosting the confectionery ingredients market share growth are the rising demand for convenience foods, urbanization, and consumer propensity for indulgence goods.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Sweet confections, chocolate, and gum confections make up most confectionery products. Ingredients for confectionery include all those goods significantly contributing to a confectionery item's desired texture, taste, appearance, and flavor. In addition to the food industry, confectionery ingredients are used in various industries, including beverages, cosmetics, pharmaceuticals, and others. The growing diabetic population worldwide and consumer preference for sugar-free confectionery are expected to boost demand for healthy confectionery ingredients. Moreover, product innovation by market participants is expected to drive the confectionery ingredients market revenue growth over the forecast years.
The demand for flavored confectioneries, like chocolate, strawberry, orange, and others, has steadily increased due to their distinct flavors drawing consumers in, appealing product packaging, as well as marketing & promotional activities carried out by the key players to broaden the reach of their products among their targeted end-user sectors. The rising demand for sugar-free products such as obese and diabetic cakes, industrialization, increased purchasing power per capita, and the use of color naturally derived from specific color emulsion technology are expected to drive the confectionery ingredients market CAGR.
Based on types, the confectionery ingredients market segmentation includes cocoa & chocolate, dairy ingredients, emulsifiers, stabilizers & thickeners (EST), malts, oils & shortenings, sweeteners, and others. The cocoa & chocolate segment held the majority share in 2022, contributing to around ~25-27% of the confectionery ingredients market revenue. This is primarily due to its diverse applications, which include confectionery, baking, food processing, and food technology. Furthermore, the antioxidant property of cocoa aids in the control of cholesterol and blood sugar levels. As a result of its high polyphenol content, cocoa appeals to consumers who favor healthy foods by lowering blood pressure and reducing the risk of heart attacks. The segment's growth is also anticipated to benefit from rising premium chocolate demand and an expansion of the culture of chocolate gifting in both developed and developing economies. The demand for flavoring ingredients is expected to rise in the coming years as food product innovation increases.
Sources have bifurcated the confectionery ingredients market data into natural and synthetic. The natural segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period 2022-2030. The highest growth in this market sector can be largely attributed to rising consumer awareness of the advantages of eating foods with natural ingredients, rising consumer preference for clean-label and healthy products, and rising use of stevia and other natural sugar substitutes by leading food and beverage companies.
The confectionery ingredients industry has been segmented based on application into chocolate confectionery, sugar confectionery, and chewing gums. Chocolate confectionery held the largest segment share in 2022, owing to rising chocolate consumption worldwide, attributed to its health benefits, rich flavor, and mouthfeel. Chocolate contains high levels of antioxidants, and some studies have shown that it can lower cholesterol and prevent memory deterioration.
Figure 1: Confectionery Ingredients Market, by Application, 2022 & 2030 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Further, the sugar confectionery segment is expected to grow at the fastest CAGR in the confectionery ingredients industry during the forecast period. This is primarily due to rising demand for various types and colors of candies. Confectionery consumption is rising in developing middle-income countries such as Brazil and India and in countries with historically low sugar consumption, such as China and Japan. Chocolate consumption is increasing in more affluent societies.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Confectionery Ingredients market accounted for USD 37.05 billion in 2022 and will likely exhibit significant CAGR growth over the study period. The on-the-go food lifestyle in countries such as Canada and the United States may boost demand throughout the forecast period. Bakery manufacturers' convenience and easy-to-carry options, such as pocket wraps and rolls, also drive growth. Gluten-free food is one of the market's current trends periods. Changing lifestyles have created a demand for alternatives to traditional home cooking, which has fueled the demand for processed and packaged foods. The growing working population is looking for food that takes less time to prepare than traditional foods. Moreover, consumer perceptions of health and well-being drive them to choose a healthy diet. The ongoing evolution of the food processing industry has resulted in the development of new packaged foods to meet North American consumers' growing demand for convenience foods.
Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.
Figure 2: CONFECTIONERY INGREDIENTS MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The European confectionery ingredients market accounts for the second-largest market share. This is primarily due to the region's established industries; additionally, it provides top-quality confectionery globally. The Ministry of Foreign Affairs claims that Europe is a very diverse market for cocoa, making it very intriguing. Its thriving chocolate processing and manufacturing sector requires many cocoa beans. The demand for specialty cocoa is growing even though the industry processes much bulk cocoa. Sustainability is a major issue for the European and cocoa markets. Further, the German confectionery ingredients market held the largest market share, and the UK confectionery ingredients market was the fastest-growing market in the European region.
The Asia-Pacific Confectionery Ingredients Market is expected to grow at the fastest CAGR from 2022 to 2030. China and India are the most populous countries, and their populations are expected to grow. Urban populations in the Asia Pacific region are gravitating more and more towards Western cuisine, so many companies tend to increase production rates and adopt cutting-edge production methods to create high-quality goods. Baking ingredient manufacturers can supply emulsifiers, enzymes, baking powders, oils, and fats to high-quality products. This will increase the demand for baking ingredients. Moreover, China’s confectionery ingredients market held the largest market share, and the Indian confectionery ingredients market was the fastest-growing market in the Asia-Pacific region.
Major market players focus on new product development through significant R&D investments and innovative technologies to produce high-quality products at low prices. Important companies in the confectionery ingredients industry are forming joint ventures, partnerships, mergers, and acquisitions to expand their geographic reach and strengthen their market position.
Along with other key market developments, market participants introduce new products, sign contracts, buy businesses, increase investments, and collaborate with other organizations to broaden their reach. The confectionery ingredients market major players, such as Cargill, DuPont, Tate & Lyle PLC, Olam, AAK AB, and others, are working to boost demand by funding research and development initiatives. In recent years, the confectionery ingredients industry has provided some of the most significant advantages to natural sugar confectionery.
British Bakels produces and sells a wide range of high-quality bakery ingredients to the commercial bakery market. British Bakels (UK) introduced vegan baking ingredients in January 2020. As veganism gained traction in 2020, consumer demand for high-quality vegan bakery alternatives is expected to rise. As a result, Bakels expanded its vegan range to include indulgent vegan fillings.
Also, Cargill Inc is an agribusiness company that offers food, financial products, and agricultural, industrial, and risk management services. It markets, processes, and distributes grains, oilseeds, sugar, meat, other food products, and cotton. Natural ingredients are also produced for the personal care industry, pet food, animal feed, and bio-industrial products. In February 2019, Cargill introduced Gerkens CT70 cocoa powder, which is intended to be widely used to prepare baked goods. The product claims to provide a true chocolate experience regarding smell and taste.
Confectionery Ingredients Industry Developments
June 2020: Cargill collaborated with a local supplier in western India to establish its first chocolate production facility in Asia.
November 2019: Dangote Flour Mills Plc, a pasta manufacturer, has been acquired by Olam International. This has contributed to the growing consumer demand for chemical-free and organic confectionery ingredients goods.
January 2019: Barry Callebaut, a leader in producing high-quality cocoa products, has acquired Inforum, a leading Russian B2B confectionery ingredients manufacturer of chocolate, fillings, and compound coatings.
Confectionery Ingredients Market Highlights:
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