Confectionery Ingred

iCrowdNewswire   Oct 30, 202010:45 AM ET

Confectionery Ingredients Market size is $102.92Bn in 2019, growing at a CAGR of 5.94% during the forecast period 2020-2025. Confectionery ingredients are used in the manufacturing of chocolate, bakery products, beverages, sugar confectioneries, among others. The growing health awareness among consumers has forced the confectionery manufacturers to explore and develop new confectionery ingredients, which has supported the growth of the confectionery ingredients industry. Confectionery ingredients are high in demand in various industries, such as sugar confectionery, chocolate, gums, and others, for manufacturing cereal bars, aerated confectionery, coatings, fillings, caramel, and different types of spreads. Moreover, changing consumer lifestyle and preferences is set to drive the confectionery ingredients market growth over the forecast period 2020-2025.

By Application – Segment Analysis

In 2019, Cocoa & Chocolate segment dominated the Confectionery Ingredients Market in terms of revenue is estimated to grow owing to the growing number of consumers intrigued by the outrageous trends of organic chocolate, no added sugar chocolates are fueling such experiments, thereby contributing to the growth of this segment. It is a solid or semi-solid food composed with the addition of fruits or nuts, and includes food made by covering, coating or embodying sugar confectionery in chocolate, filled with ice cream, or baked confectionery flavored with chocolate. The cocoa in chocolate also contains antioxidants called flavonoids, which provide several health benefits like it improves blood flow and is useful for treating immune disorders abetting towards the growth of the market.

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Geography – Segment Analysis

In 2019, the Europe region dominated Confectionery Ingredients Market in terms of revenue with 36.3% of global Market Share. This is owing to high consumption of confectionery products, health lifestyle, and use of natural ingredients products. High consumption of confectionery products in this region followed by rising demand for a healthy lifestyle have supported the growth of confectionery ingredients market. Ease of doing business, and broad application spectrum are also some of the prominent factors that are driving the demand for confectionery ingredients in this region are key factors in the growth of the Confectionery Ingredients market. North America is estimated to record the fastest growth rate during the forecast period 2020-2025.

Drivers – Confectionery Ingredients Market

Growing Consumption for Flavored Confectioneries

The demand for flavored confectioneries, such as chocolate, strawberry, orange, and others have witnessed a steady increase in its growth owing to its unique taste attracting the consumers; and the appealing packaging of products, along with marketing & promotional activities is driving the market. According to Global Food Safety Initiative (GFSI), food retailers are demanding certifications from their suppliers owing to the complex challenges faced by the food supply chain. Moreover, the increasing popularity of pancakes, doughnuts, and chocolate cookies has also brought in voluminous revenues into the confectionery ingredients market.

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Challenges – Confectionery Ingredients Market

The Increasing Demand for Low-Calorie Product

As people become increasingly inclined towards fitter and healthier lifestyles, the demand for low-calorie food is negatively impacting the market. Health conscious consumer’s demand for honey as a prime ingredient in confections owing towards its natural sweetener is hampering the market’s growth. Also the stringent FDA regulations are hampering the growth of the confectionery ingredients market.

Confectionery Ingredients Industry Outlook

Product Launches was the key strategy of the players in the Confectionery Ingredients Industry. Confectionery Ingredients top 10 companies include Aarhuskarlshamn, Archer Daniels Midland Company, Arla Foods, Barry Callebaut, E. I. Du Pont De Nemours & Company, Ingredion Incorporated, Kerry Group PLC, Koninklijke DSM N.V., Olam International Ltd and Tate & Lyle PLC.

Acquisitions/Product Launches

In November 2019, Olam International acquired Dangote Flour Mills Plc. A flour and pasta manufacturing company. This acquisition helped in increasing consumer demands for organic and chemical free products.

In January, 2019, Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products acquired Inforum, a leading Russian B2B producer of chocolate, compound coatings and fillings. This acquisition helped company by driving its growth across multiple categories and in reaching more consumers.

Key Takeaways

The rising demand for ready-to-eat and convenience-based products is driving the growth of the market.

The demand for products, such as bread, cake, and biscuits, is increasing at a significant rate and are anticipated to provide growth for confectionery ingredients market.

North America region is estimated to record the fastest growth rate during the forecast period 2020-2025.

Related Reports :

A. Specialty Food Ingredients Market

B. Food Processing Ingredients Market

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