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Ingredients in Focus is Food Dive’s bite-size column highlighting interesting developments in the ingredients sector.
The confectionery ingredients market is expected to grow at a compound annual growth rate of 6.8%, rising from $82.4 billion in 2024 to $107.3 in 2028, according to a report from the Business Research Company.
The growth in the forecast period can be attributed to packaging innovations, focus on health and wellness, reduced sugar and sugar alternatives, expansion of premium segments, globalization of flavor profiles, and clean label preferences, the report said.
With more innovative product formulations on the market, more consumers are reaching for baked goods and sweets.
“The increasing demand for gourmet products and changing food habits are leading to a rise in confectionery products,” the report said.
Technological advancements in food processing and innovative flavors and combinations have also had a major stake in changing the market.
Although legacy brand names like M&Ms, Hershey, Reese’s, Twizzlers and Jolly Rancher still dominate much of the market, the “better-for-you” chocolate and sweets brands attract consumers who usually would stray away from the category altogether.
Skinnydipped, Harken Sweets, Unreal Foods, barkThins, Tru Fru and SmartSweets were all created with the idea of recreating some childhood favorites cleaner ingredients and minimal processing techniques.
Multiple recent studies have pointed to consumers becoming hyper-aware of ingredient quality. Experts say the trend is putting smaller, health-focused, niche CPGs that specialize in the better-for-you products, in a position for growth.
Key players in the market, according to the report, include Cargill, Archer Daniels Midland,, Kerry Group and Tate & Lyle.
Major companies operating in the confectionery ingredients market are launching organic products such as organic whole milk powder to gain a competitive edge in the market.
Milk powders are primarily used as an ingredient in candies, especially chocolates.
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