With only a few players acquiring the most of the market, the global market for confectionery ingredients demonstrates a highly consolidated competitive landscape, states a report by Transparency Market Research (TMR). In 2016, the leading five participants, namely, Cargill Corp., Olam International Ltd., E. I. Du Pont De Nemours and Co., Tate and Lyle, and Kerry Group, held more than 80% of the overall market and the scenario does not seem to change in the near future. The focus of these companies is on product innovation and advancement, which is likely to remain so over the next few years, notes the study.
As per TMR’s estimations, the global market for confectionery ingredient, which was worth US$76.25 bn in 2016, is expected to rise at a CAGR of 4.2% during the period from 2017 to 2025 and reach a value of US$109.48 bn by the end of the forecast period. Chocolates have emerged as the main application area of these ingredients. Analysts expect this trend to continue over the forthcoming years.
Demand for Chocolate and Cocoa to Remain High
In this report, chocolate and cocoa, sugar, dairy ingredients, emulsifiers, and sweeteners have been considered as the key types of confectionery ingredients available across the world. Currently, the demand for chocolate and cocoa is higher than other ingredients and the trend is expected to remain so in the near future.
The report further presents a geographical assessment of the worldwide market for confectionery ingredients. According to it, North America, the Middle East and Africa, Europe, Asia Pacific, and Latin America are the key regional markets for confectionery ingredients. Among these, Europe emerged as the market leader in 2016 with a share of more than 33%.
Over the forecast period, researchers expect this regional market to remain on the top, thanks to the high consumption rate of confectionery products, such as chocolates and gums. The augmenting demand of sweetened food products, breads, and ice creams in European nations, such as the U.K., Germany, and France, is driving the Europe confectionery ingredients market substantially and is expected to continue doing so over the next few years, states the report.
Rising Awareness about Benefits of Dark Chocolate to Reflect Positively on Usage of Confectionery Ingredients
“The increasing consumption of chocolates is the key factor behind the rising demand for confectionery ingredients across the world,” says a TMR researcher. The rising level of awareness among consumers regarding the health benefits of dark chocolates is another significant factor fueling the usage of confectionery ingredients. The growing intake of premium chocolates and bakery items in affluent countries is also aiding this market remarkably by sourcing more cocoa and other ingredients to manufacture these products. With the sudden decrease in the price of cocoa, manufacturers and other sourcing companies can purchase it now at a lower price and stock it for future usage, which is expected increase their profit in the near future.
The increasing adoption of western culture is likely to influence the demand for confectionery products, which also is anticipated to boost the growth of the worldwide confectionery ingredients market over the forecast period. However, the presence of stringent international quality standards and regulations may limit the usage of these ingredients, reflecting negatively on this market, reports the research study.
The study presented here is based on a report by Transparency Market Research (TMR), titled “Confectionery Ingredient Market (Type - Chocolate & Cocoa, Sugar, Dairy Ingredient, Emulsifier, and Sweeteners, Form - Dry and Liquid, Application - Chocolate, Sugar Confectionery, and Bakery) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017- 2025.”
The segments covered in the global confectionery ingredients market are as follows:
- Chocolate & Cocoa
- Dairy Ingredients
- Sugar Confectionery
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa
- South Africa
- Rest of MEA
- Latin America
- Rest of Latin America
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