Candy Market is Estimated to Witness High Growth
The candy market comprises of various sugar-based and chocolate confections. Candy comes in different flavors, colors, shapes and often packaged attractively. Some key products in the candy market include chocolate candy, gummi/gummy candy, hard candy, mints, and other sugar-based candy forms. The global popularity for candies has been rising due to wide availability of various candy flavors and innovative packaging which attracts kids and young population. The global candy market is estimated to be valued at US$ 83.37 Mn in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The availability of various candy flavors presents a huge market opportunity. Candy manufacturers are innovating new flavors every year to attract customers. Exotic flavors such as tropical fruit, sour flavors, and spice-infused flavors have gained popularity recently. The candy market has also witnessed innovations in chocolate flavors by combining it with nuts, cookies, caramel and other sweeteners. The demand for different candy flavors among the young population is expected to drive significant growth. Candy companies focused on continuous new product development and introductions of various flavors in the market are expected to witness higher growth. Furthermore, emerging economies with growing income levels and increasing health awareness will increase the opportunity further for premium and healthy candy variants.
Porter's Analysis
Threat of new entrants: The candy market has moderate threat of new entrants as it requires large production facilities and distribution networks. New players also need to address compliance with strict quality and food safety standards.
Bargaining power of buyers: Buyers have moderate bargaining power as the candy market has many established brands. However, buyers can negotiate on pricing during festive seasons when demand is high.
Bargaining power of suppliers: Suppliers of raw materials like sugar, flavors and packaging have moderate bargaining power due to availability of substitutes. Supply contracts provide price stability for manufacturers.
Threat of new substitutes: Threat from substitutes is high as consumers are increasingly shifting to healthy snacks. Products like dried fruits, nuts and energy bars pose competition.
Competitive rivalry: The market has high competitive rivalry due to presence of many global and regional candy brands competing on pricing, innovation, flavor offerings and marketing.
SWOT Analysis
Strength: Established brands, large production capabilities, widespread distribution channels.
Weakness: High dependence on raw material price volatility, health concerns of sugar content limit target audience.
Opportunity: Expanding into new flavors, international growth markets, tie-ups with local players overseas.
Threats: stringent regulations on food content, substitutes gaining consumer preference over candy.
Key Takeaways
The Global Candy Market Size is expected to witness moderate growth over the forecast period led by Asia Pacific region.
Regional analysis: The Asia Pacific candy market is projected to grow at the fastest rate during the forecast period. China dominates the APAC candy market with largest consumer base that prefers chocolate and gum candy variants. India is another major market where local players like Haldirams are increasingly launching innovative offerings.
Key players: Key players operating in the candy market are Accion S.A., Cargill Incorporation, Jost Chemical Co., Nutrena, Tyson Food Inc., Anheuser-Busch InBev NV, Henan Jindan Lactic Acid Technology Co Ltd., Land O'Lakes Inc., Provimi, Shenzhen Esun Industrial Co., Ltd. Major brands compete on brand recognition, competitive pricing for value brands and premiumization through new flavors.
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