Confectionery Ingredient Market
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
Press Release :
Global Confectionery Ingredient Market: Snapshot
The significant rise in the consumption of confectionery and bakery items has been influencing the growth of the confectionery ingredients market at the global level. The heavy demand for chocolate, sugar confectionery, and bakery products is likely to accelerate the progress of this market in the next few years. The influence of the western culture on the food habits of consumers in developing economies is also expected to boost the demand for confectionery in the near future, reflecting substantially on the sales of confectionery ingredients.
The increasing demand for better food, fueled by the frequent changes in consumers’ lifestyle, have made it very difficult for food product manufacturers to meet the tastes and requirements of consumers, which has prompted confectionery producers to explore the market scope with the use of ingredients. This, as a result, is anticipated to open new growth avenues for the worldwide market for confectionery ingredients over the forthcoming years. The opportunity in this market is likely to rise at a CAGR of 4.20% between 2017 and 2025, progressing from a value of US$76.25 bn in 2016 to US$109.48 bn by the end of 2025.
Europe to Continue Leading Global Confectionery Ingredient Market
On the basis of the geography, the global market for confectionery ingredients has been categorized into North America, the Middle East and Africa, Europe, Asia Pacific, and Latin America. North America and Europe have emerged as the leading regional markets for confectionery ingredients. They collectively accounted for a share of more than 60% in the overall market in 2016. Europe is the dominant region in this market and is reported to have shown a higher consumption of confectionery products such as chocolates and gums.
The confectionery ingredients market in Europe is majorly driven by the growing demand of sweetened items, bread and ice cream in domestic regions, such as the U.K., Germany, France and the Rest of Europe. However, the demand for confectionery ingredients in this region is expected to exhibit a moderate growth rate over the forthcoming years, owing to its maturation.
Asia Pacific, on the other hand, is anticipated to register a higher growth rate as compared to the other regions between 2017 and 2025, especially in countries such as India, Japan, and China. The continual research on the consumption of chocolate and procurement of good quality confectionery ingredients from reliable sources are expected to complement the rise of the market for confectionery ingredients in this region in the near future.
Chocolate and Bakery Expected to Exhibit Fair Growth
Confectionery ingredients are widely utilized in chocolates, sugar confectionery, and bakery products. With a high consumption rate, the usage of these ingredients is significantly high in chocolates. Over the coming years, this trend is likely to remain so on the grounds of the growing awareness among consumers regarding the health benefits of dark chocolates. Bakery products and sugar confectionery are also projected to witness a considerable rise in the usage of confectionary ingredients in the near future due to the western influence in emerging economies and the changing palate of consumers across the world.
Cargill Inc., Olam International Ltd., E. I. Du Pont De Nemours and Co., Archer Daniels Midland Co., Ingredion Inc., Barry Callebaut, Tate & Lyle Plc, Koninklijke DSM N.V., and Kerry Group Plc are some of the key vendors of confectionery ingredients across the world.
Rising Demand for Confectioneries to Boost Confectionery Ingredient Market
Confectionery is a term that is used to describe carbohydrate-rich and sugary foods such as chocolates and candy. Sugar is widely used in confectionery items. Confectioneries are in high demand in a wide variety of settings, including restaurants and food joints, households, and food processing plants. Confectionery ingredients are utilized to produce sweet and sugary things like baked goods, lollipops, candies, chocolates, and other sugary treats. Extensive use of the product is estimated to support expansion of the global confectionery ingredient market in the years to come.
Confectionery ingredients are in high demand due to the rising number of confectionery applications in the food and beverage industry. In addition to that, the customers' perception about the multiple health benefits of chocolate, as well as changing lifestyles of consumers are expected to have a major impact on the global confectionery ingredients market. Furthermore, augmented consumption of confectionery items in both developing and developed countries is expected to have a significant effect on the global confectionery ingredients market in the near future. Festive, seasonal, and emerging demand are expected to create untapped potential for market participants.
Increasing Demand for Innovative Products in the Confectionery Industry to Support Market Growth
The desire for flavored confectioneries like orange, strawberry, and chocolate and other flavors has been steadily growing. Thanks to its distinctive taste, promotional and marketing activities undertaken by prominent players, and enticing packaging of items, there has been an augmented penetration of their products amongst their targeted end-users, the global confectionery ingredient market is expected to grow. Besides that, regular releases of innovative products in the confectionery industry, like organic confectioneries and sugar-free chocolate, are likely to add to growth of the market in near future.
Because of rising disposable income with augmented purchasing power, the increasing demand for confectionery items, and a rising number of regional companies, particularly in countries like China and India, the Asia Pacific region is anticipated to be one of the rapidly growing regions in the global confectionery ingredient market. Furthermore, the acceptance of western culture and increased understanding of the nutritional benefits of dark chocolate consumption are expected to boost market growth.
Global Confectionery Ingredient Market: Overview
Confectionery ingredients are used in the manufacturing of end products like chocolate, bakery products, beverages, sugar confectioneries among others. These ingredients include cocoa, dairy ingredients, emulsifiers, sugar, sweeteners and others in order to make a good product in the market for sale. These ingredients need to be mixed in required quantities in order to make a confectionery item. Sweeteners are a replacement of sugar products in the market and they considered as a healthy additive for health conscious consumers. They are less in calories and provide the same taste as that of sugar. Rapid consumption of chocolate is driving the growth of the chocolate market which is in turn fueling the demand for confectionery ingredients.
Consumer awareness regarding the health benefits of consuming chocolate is fueling the demand for confectionery ingredients. Cocoa and other dairy ingredients added to chocolate are reported to have beneficial health related qualities. The cocoa content offers relief from illnesses such as high blood pressure, cholesterol, and other neurodegenerative diseases. Furthermore, the demand for confectionery products is increasing due to the changing demand of consumers and the influence of the western culture in terms of feeding habits in the developing economies. Confectionery items have become a necessary food item in recent times. The consumer’s lifestyle along with their demand changes with time and in order to meet their requirements, manufacturers of confectionery products including bakery are exploring with ingredients which is also backed by huge investments in research and development. However, confectionery manufacturers need to abide by various regulations and conditions while procuring ingredients and processing them into end products.
The cost of good quality ingredients is high, and international food regulatory organizations keep a check on suppliers and manufacturers to deliver a gourmet confectionery product to end consumers. High sugar content, adding of artificial flavors, and color are often harmful for the end products. For example, in India, non-permitted colorants are often added in many dairy products like milk, resulting in health hazards. According to Global Food Safety Initiative (GFSI), food retailers are demanding certifications from their suppliers due to the complex challenges faced by the food supply chain. Therefore, manufacturers find it difficult to meet the cost of purchasing good quality and high cost ingredients, and simultaneously keeping a check on the certifications of the supplier’s products.
Global Confectionery Ingredients Market: Segmentation
The global confectionery ingredient market is segmented into five types- chocolate & cocoa, emulsifiers, sugar, sweeteners, dairy ingredients. The global confectionery ingredient market was analyzed and found that the chocolate and cocoa segment has accounted for the largest market share in 2016. Furthermore, the market is categorized into two form as dry and liquid. The dry form of confectionery ingredient is the most widely used ingredient in the manufacturing of confectionery products due to its functional and operational excellence.
In addition, the global confectionery ingredient market is segregated into four segments- chocolate, sugar confectionery, bakery and others. The chocolate is the most widely used application in the confectionery industry. Not only because of its taste, but also the form of dark chocolate is good for health.
Geographically, the market has been further divided into five regions which include North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Europe accounted for the largest market for confectionery ingredient in 2016. North America held the second largest share with over 25% of the global confectionery ingredient market in 2016. Asia Pacific region has been identified to be the most promising and has been analyzed to have the fastest growth during the forecast period.
Companies Mentioned in the Report
The major players operating in the global confectionery ingredient market include Cargill Corporation, Olam International Ltd., E. I. Du Pont De Nemours and Co., Archer Daniels Midland, Barry Callebaut, Kerry Group, Tate and Lyle Plc, Koninklijke DSM N.V., ZuChem Inc., and Ingredion Inc..
The segments covered in the global confectionery ingredients market are as follows: