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Confectionery Ingredient Market Growth Analysis 2025

The Global Confectionery Ingredients Market is reasonably consolidated and is dominated by leading entities such as Cargill Corp., E. I. DuPont de Nemours and Co., Olam International Ltd., Kerry Group, and Tate and Lyle. These five players accounted for more than 80% of the global confectionery ingredients market in 2016 and are likely to retain a dominant hold over the confectionery ingredients market over the coming years. Product innovation and consistent development of existing product lines is the key competitive strategy adopted by these companies and is likely to remain a promising tactic for players in the global confectionery ingredients market in the coming years. Innovative marketing tactics could also bear fruit for leading players in the confectionery ingredients market, as rapid product diversification has resulted in a congested marketplace in several regions.

According to Transparency Market Research (TMR), the global confectionery ingredients market is expected to exhibit a strong 4.2% CAGR between 2017 and 2025. The confectionery ingredients market was valued at US$76.25 bn in 2016 and is expected to rise to close to US$109.5 bn by the end of 2025.

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Europe to Retain Dominance in Global Confectionery Ingredients Market

Regionally, Europe is the leading contributor to the global confectionery ingredients market, and accounted for more than a third of the global market in 2016. Europe is likely to remain the leading regional player in the global confectionery ingredients market in the coming years due to the firm presence of several leading brands in the confectionery ingredients market, including the dominance of European chocolate makers in the global chocolate market.

North America is also likely to make vital contributions to the global confectionery ingredients market in the coming years due to similar reasons. The high domestic consumption of bakery and chocolate products in North America is also a vital driver for the global confectionery ingredients market, though the growing prevalence of obesity and the numerous diseases it has been associated with could help check the rise of the confectionery ingredients market in North America.

By product type, chocolate and cocoa is the leading segment of the global confectionery ingredients market and is likely to remain the dominant contributor in the coming years due to the steady popularity of chocolate products as well as the rising demand for chocolate flavoring in a range of other food and beverage products. Other key product segments of the global confectionery ingredients market include sugar, emulsifiers, dairy ingredients, and other sweeteners.

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Rising Consumption of Dark Chocolate Vital for Confectionery Ingredients Market

One of the prime drivers for the global confectionery ingredients market is the rising awareness about the health benefits of dark chocolate and the resultant rise in demand for chocolate products. Dark chocolate contains flavonoids and several other compounds that have potent antioxidant properties and thus impart a protective effect against cardiovascular and circulatory diseases. The increasing availability of dark chocolate products to a wider consumer demographic due to the steady geographic expansion of the global chocolate industry has benefited the global confectionery ingredients market and is likely to remain a key driver in the coming years.

The rising adoption of Western food practices in emerging Eastern countries is another key driver for the global confectionery ingredients market. In contrast to conventional Eastern food practices, Western food makes liberal use of confectionery ingredients, leading to steady growth of the confectionery ingredients market in regions such as Asia Pacific and the Middle East. The growing popularity of bakery items is a key aspect of this effect and is likely to be vital to the global confectionery ingredients market in the coming years.

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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

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