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Ingredients in Focus is Food Dive’s bite-sized column highlighting exciting developments in the ingredients sector.
According to a report by Business Research Company, the confectionery ingredients market is expected to grow at an average annual rate of 6.8% from $82.4 billion in 2024 to $107.3 billion in 2028.
Growth in the forecast period can be attributed to packaging innovations, focus on health and wellness, reduction in sugar and alternative sugars, expansion of the premium segment, globalization of flavor profiles, and clean label preference, the report said.
As more innovative product formulations hit the market, more consumers are turning to baked goods and snacks.
“Confectionery products are increasing due to increasing demand for gourmet products and changes in eating habits,” the report said.
Technological advancements in food processing and innovative flavors and combinations have also had a significant impact on market changes.
The legacy brand names are: M&M’s, Hershey’s, Reese’s, Twizzlers and Jolly Rancher still dominate much of the market, and “better-for-you” chocolate and confectionery brands are attracting consumers who would typically break away from the category altogether.
Skinnydipped, Harken Sweets, Unreal Foods, barkThins, Tru Fru, and SmartSweets are all created with the idea of recreating the clean ingredients and minimal processing techniques you loved as a child.
Several recent studies have shown that consumers are hyperaware of ingredient quality. experts say The trend is to come up with smaller, health-focused niche CPGs. A company that specializes in better products, positioned for growth.
According to the report, major players in the market include Cargill, Archer Daniels Midland, Kerry Group, and Tate & Lyle.
Major companies in the confectionery ingredients market are launching organic products such as organic whole milk powder to secure a competitive edge in the market.
Powdered milk is mainly used as an ingredient in candies, especially chocolate.
