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Confectionery Ingredients Market Size Estimated to Reach $94.6 Billion by 2027

(, March 30, 2022 ) Confectionery Ingredients Market size is estimated to reach $94.6 billion by 2027, growing at a CAGR of 5.8% during the forecast period 2022-2027. Confectionery ingredients include fruits, dry fruits, nuts, sugar (glucose/sucrose), cocoa powder, milk powder, and more. Dark chocolate may be considered confectionery with health and nutritional advantages and therefore may be considered to include nutritional ingredients. Chewing gums and all types of mouth refreshing confectioneries are another series of confectioneries normally including sweetening composition, food-grade acid composition, cooling agents, and flavoring agents. Dairy ingredients are principal constituents in milk and white chocolate production, owing to their powerful influence on its characteristics. Typical confectioners’ sugar substitutes have vital health advantages and support the immune system and include stevia and monk fruit sweetener which are natural sweeteners. The improved R&D activities in conjunction with the numerous launches of novel formulated products like aerated confectionery is set to drive the Confectionery Ingredients Market. The surging demand for clean label ingredients resulting in increased application of organic confectionery ingredients and natural sweeteners like stevia is set to propel the growth of the Confectionery Ingredients Market during the forecast period 2022-2027. This represents the Confectionery Ingredients Industry Outlook.

Confectionery Ingredients Market Segment Analysis – By Type:

The Confectionery Ingredients Market based on type can be further segmented into Chocolate & Cocoa, Sugar, Dairy Ingredients, Emulsifiers, Sweeteners and Others. The Chocolate & Cocoa Segment held the largest market share in 2021. This growth is owing to the rare taste, alluring packaging in conjunction with the marketing and promotional activities conducted by the key players to augment the outreach of their products amidst the targeted end-users. The soaring novel product launches like sugar-free chocolates and organically sourced chocolates including nutritional ingredients is further propelling the growth of the Chocolate & Cocoa segment.

Furthermore, the Dairy Ingredients segment is estimated to grow with the fastest CAGR of 6.4% during the forecast period 2022-2027 owing to the extensive application of dairy ingredients like milk powder and cheese in confectionery like chocolates.

Confectionery Ingredients Market Segment Analysis – By Application:

The Confectionery Ingredients Market based on the application can be further segmented into Chocolate, Sugar Confectionery, Bakery, and Others. The Chocolate Segment held the largest market share in 2021. This growth is owing to the soaring consumption of chocolates which may include dairy ingredients by customers of all age-groups worldwide and the rising economic prosperity of developing economies. The surging intake of dark chocolates owing to cocoa including antioxidants termed flavonoids with numerous health advantages is further propelling the growth of this segment.

Furthermore, the Bakery segment is estimated to grow with the fastest CAGR of 6.6% during the forecast period 2022-2027 owing to the surging western influence worldwide in conjunction with the altered preference of consumers globally seeking clean label ingredients and nutritional ingredients in baked products resulting in bakers fortifying their products giving rise to functional baked foods.

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Confectionery Ingredients Market Segment Analysis – By Geography:

The Confectionery Ingredients Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe (Confectionery Ingredients Market) held the largest share with 36% of the overall market in 2021. The growth of this region is owing to the soaring consumption of chocolate confectioneries including sweeteners in countries like the U.K., Germany, and France in the European region. The emergence of nutritional ingredients like inulin in confectionery like chocolates and the existence of key players like Barry Callebaut in the region is further propelling the growth of the Confectionery Ingredients Market in the European region.

Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like surging demand for confectioneries like chewing gum, a boost in purchasing power, and the proliferating regional players in countries like India and China in the Asia-pacific region. The growing westernization and the enhanced awareness regarding the health advantages of dark chocolates are further fueling the progress of the Confectionery Ingredients Market in the Asia-Pacific region.

Confectionery Ingredients Market Drivers

Ingenious Sugar-Free Solutions In Hard Candies And Chewing Gum Are Projected To Drive The Growth Of Confectionery Ingredients Market:

Consumers of confectionery across the world are mindful of what they snack on and the amount of sugar they consume. The clean label trend is picking up in the confectionery sector too. Digestive wellness is another novel trend that is being significantly regarded by consumers in Europe and U.S. BENEO has developed a sugar-free solution in hard candies. These include sugar-free hard-boiled candies with Isomalt which is a tooth-friendly sugar replacer. Isomalt is the only bulk sweetener exclusively extracted from sugar beet across the globe. It is 100% sugar-free and assists in averting tooth decay. The hard candies with isomalt possess a sugar-like taste with a long-lasting flavor release. BENEO has also developed sugar-free solutions in chewing gum with Isomalt. This chewing gum has a low sticky gum center owing to the very low hygroscopicity of Isomalt. It has superior form stability of the center and enhanced machinability. A pure sweet taste with an evened sweetness profile characterizes this chewing gum. Innovative sugar-free solutions in hard candies and chewing gum are therefore fuelling the growth of the Confectionery Ingredients Market during the forecast period 2022-2027.

Emergence Of Nutritional Ingredients In Confectionery Is Expected To Boost The Demand Of Confectionery Ingredients:

BENEO has performed sugar minimization and replacement in chocolate by including Orafti® Inulin. Inulin is an organically sourced fiber from chicory root. Inulin-type fructans like Orafti® Inulin appear naturally in an enormous count of plants and vegetables, though the chicory root is a specifically rich source. As it is derived by way of hot water processing, chicory root is of 100 % vegetable origin. Orafti® Inulin may be regarded to belong to the class of nutritional ingredients with advantages like enhancing the proportion of intestinal flora, minimizing count of food consumption calories, minimizing fat content, and boost in calcium absorption. The rise of nutritional ingredients like inulin in confectionery like chocolates is therefore driving the growth of the Confectionery Ingredients Market during the forecast period 2022-2027.

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Confectionery Ingredients Market Challenges

Vanilla Shortage And Shrinkflation Are Hampering the Growth of the Confectionery Ingredients Market:

Vanilla is one of the most recognized and high-priced ingredients. Madagascar is recognized as the dominant vanilla producer of the globe. However, the continuing droughts and dubious working practices are limiting its production. The price of vanilla experienced an upsurge by 150% in 2015. This has been largely attributed to poor quality harvests and inferior quality beans. The inflated prices of vanilla have pushed firms to establish alternative strategies to avert sourcing the high-priced vanilla. Additionally, certain makers are resorting to shrinkflation to neutralize the soaring costs. As part of shrinkflation, the product price remains the same. However, the portion size reduces. These issues are thus hampering the growth of the Confectionery Ingredients Market.

Confectionery Ingredients Industry Outlook

Novel product launches, mergers & acquisitions, expansions, and partnerships are key strategies adopted by players in this market. Confectionery Ingredients top 10 companies include:

Barry Callebaut

Arla Foods

Archer Daniels Midland Company

Kerry Group

Olam International

Ingredion Incorporated


Tate & Lyle

AAK (AarhusKarlshamn)


Acquisitions/Product Launches:

In November 2021, Barry Callebaut introduced an entire portfolio of dairy-free chocolate compounds, extending the firm’s plant-based alternatives. These novel alternatives are 100% plant-based and are processed in separate facilities where no dairy is existing. The novel line involves dairy-free EZ Melt Compound, Compound Chip/Chunk, Compound Soft Chunk, Compound Soft Shaped Chunks and Bulk Liquid for different uses.

In October 2021, Barry Callebaut introduced a novel better-for-you drink mixture prepared from 100% cacao fruit, that it will make accessible for makers globally to utilize in diverse kinds of beverages. The mixture, termed Elix, was revealed at a live and virtual event at Hortus Botanicus Amsterdam. Cacao fruit is an abundant source of numerous nutrients, inclusive of flavonols — a class of phytochemicals thought to possess numerous potential health advantages, specifically for the heart and circulation.

In October 2021, Arla Foods Ingredients has evolved into the earliest supplier with the capability for commercial manufacture of pure BLG (beta-lactoglobulin). Introduced at the novel Arla Foods Ingredients Innovation Centre, Lacprodan® BLG-100 is a pure BLG constituent with a rare nutritional profile. Generated utilizing a patented novel separation technology, it includes 45% more leucine – the chief muscle-building amino acid – than commercially accessible whey protein isolates.

Key Takeaways

Geographically, Europe Confectionery Ingredients Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the highest per capita consumption of confectioneries including sweeteners and sugar substitutes in most of the nations like Switzerland, Sweden, France, Italy and Netherlands in the European region.

Confectionery Ingredients Market growth is being driven by the soaring industrialization and the increasing demand for confectionery products including sugar substitutes worldwide. However, the regulations for the application of confectionery ingredients to keep up with the international quality standards and the erratic cocoa prices are some of the major factors hampering the growth of Confectionery Ingredients Market.

Confectionery Ingredients Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Confectionery Ingredients Market report.

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Venkat Reddy

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Source: EmailWire.Com

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