Opportunities in the Global Confectionery Sector

by Sameer Joshi or 19-Apr-2018

Global confectionery sector, valued at US$164.5 billion in 2017, is dominated by the Americas, which accounted for 34.2% share. The sector is led by robust growth in the Asia- Pacific and Middle East & African regions, and is forecast to record a CAGR of 4.3% during 2017–2022. An improving global economy, supported by a stronger than expected economic revival in developed countries, coupled with rising disposable incomes in developing countries, remains the primary factor enabling consumers to indulge in more quality confectionery products.

Change in consumption

Confectionery sector is forecast to register an increasing share in the global food industry during 2012–2021. All the regions are forecast gain share, driven by growing populations, rising disposable income, and the expanding retail industry. The increasingly hectic and busy lifestyles of consumers globally means that they are turning to indulgent confectionery products as a way to relax and unwind on a regular basis.

Health & Wellness analysis

Confectionery products with health & wellness attributes accounted for 16% of the overall global sector sales in 2017, a slight increase over 15.7% in 2012. ‘Free From’ represented the most prominent health & wellness product attribute across all regions while ‘health management’ was the most common benefit demanded by consumers across all regions.

Distribution channels

Hypermarkets & supermarkets was the leading distribution channel for the global confectionery sector, with a value share of 40.8% in 2017, followed by convenience stores with a 28.5% share. Hypermarkets & supermarkets led in terms of channel sales in the Middle East & Africa, Western Europe, Eastern Europe, and the Americas while convenience stores led in Asia-Pacific.