Global Functional Confectionery Market - Industry Trends and Forecast to 2029

Market Analysis and Size

The functional confectionery market is an example of a non-age-restricted segment. For the vast majority of the world's population, age has never impeded indulging in functional to satisfy their taste buds. For over a decade, the market has been growing steadily, and innovations in flavours and textures contribute to the market's expansion. Furthermore, the growing number of consumers drawn to the outlandish trends of organic functional and no added sugar functional is fuelling such experiments, thereby contributing to the functional confectionery market.

Data Bridge Market Research analyses that the functional confectionery market which was growing at a value of USD 1.8 billion in 2021 is expected to reach the value of USD 2.98 billion by 2029, at a CAGR of 9.10% during the forecast period OF 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, patent analysis and consumer behaviour.

Report Scope and Market Segmentation

Market Definition

Functional confectionery refers to candy or snacks that have been enhanced with additional health benefits. These items may be intended to improve oral health, provide energy, or strengthen the immune system. Functional confectionery can also be used to provide the body with vitamins and minerals.

Functional Confectionery Market Dynamics

Drivers

• Rising expansion of retail channel for distribution of products

One of the major trends driving the evolution of the functional confectionery market is advancements in online retail. Convenience stores, supermarkets, specialty stores, drug stores, and hypermarkets are all large distribution channels for products. Continuous efforts by retailers and manufacturers to expand their supply and distribution chain have played an important role in increasing access to products in the Functional Confectionery market.

• Diversification of products according to the needs

The constant desire to try new ethnic flavours and tastes is a major driving force in the functional confectionery market. Over the years, the functional industry has shifted its focus to producing healthier products. The growing health-conscious population, particularly in emerging economies, is driving this trend. The evolution of the functional confectionery market has been fuelled by advances in organised retail in developing regions.

Opportunity

The ease of payment for products through online channels, as well as the wide range of functional flavours and textures, are important factors driving the popularity of e-commerce in the functional confectionery market. Furthermore, Functional confectionery is increasingly being used in the formulation of a wide variety of beverages and confectionery products, such as cakes, milkshakes, croissants, and hot functional, which is contributing to the global functional confectionery market's growth.

Restraints

However, the easy availability of product substitutes, stringent government regulations pertaining to quality standardisation, and supply chain disruptions caused by the pandemic will limit the scope of growth for the functional milk market. The high cost of R&D activities, as well as the volatility of raw material prices, will stymie the functional confectionery market's growth rate. Other market growth restraints include rising obesity prevalence, high sugar levels in patients, and a rising incidence rate of diabetes globally.

This functional confectionery market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the functional confectionery market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Functional Confectionery Market

The COVID-19 outbreak has had a significant impact on the confectionery market. The strict rules and lockdown implemented throughout 2020 have had an impact on the confectionery industry, causing differential impact on raw material supply (agricultural produce, food ingredients, and intermediate food products), trade & logistics, demand-supply volatility, uncertain consumer demand, and affecting the workforce at the industrial level. One of the major factors affecting the confectionery industry during the lockdown was a drop in sales as a result of decreased gifting and impulse buying among consumers worldwide.

Recent Development

• Hershey's created a functional bar in February 2022 to commemorate All Women and Girls. The "Celebrate SHE" bars are a limited edition. SHE was highlighted in the centre of the milk functional bar by the brand.
• Cadbury, a brand of Mondelez International, introduced the Twist Wrap packaging solution for its Duos range in January 2022, allowing consumers to snack in small portions by twisting and sealing the package after consuming half of the functional bar.
• In collaboration with Lagardère, Ferrero will pre-launch the new Ferrero Rocher Tablets in the travel-retail channel in September 2021. Ferrero enters the functional tablet market with the new product, which is available in three flavours: milk, dark 55 percent cocoa, and white.
• Mars will launch two new vegan functional bars in January 2021, just in time for Veganuary. Following the release of its first free-from functional, Galaxy Vegan, in 2019, the company has released vegan versions of two of its most iconic functional bars, Bounty and Topic.

Global Functional Confectionery Market Scope                                                                  

The functional confectionery market is segmented on the basis of nature, type, function, ingredients, application and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Nature

• Organic
• Conventional

Type

• Sugar Confectionery
• Chewing gums
• Hard candy
• Boiled candy
• Others
• Bakery Confectionery
• Pastries
• Doughnuts
• Cookies
• Others
• Chocolate Confectionery
• Dairy bars
• Fudge
• Granola
• Dark chocolates
• Others

Function

• Cognitive Wellness
• Performance Enhancers
• Wellness Enhancers
• Oral Care
• Others

Ingredients

• Protein
• Omega 3 and Omega 6
• Vitamins and Minerals
• Probiotics
• Others

Application

• Children
• Middle Age
• Senior
• Youth

Distribution channel

• Direct sales
• Gyms
• Health clubs
• Institutions
• Others
• Indirect sales
• Modern grocery retailers
• Hypermarkets/supermarkets
• Convenience stores
• Discount stores
• Traditional grocery retailers
• Food and drink specialty stores
• Independent small groceries
• Others
• Online retail

Functional Confectionery Market Regional Analysis/Insights

The functional confectionery market is analysed and market size insights and trends are provided by country, nature, type, function, ingredients, application and distribution channel as referenced above.

The countries covered in the functional confectionery market report are U.S., Canada and Mexico in North America, Germany, Sweden, Poland, Denmark, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominated the global market and is expected to do so again during the forecast period. This region's expansion can be attributed to rising demand for sugar confectionery products such as chocolates from emerging markets such as India and China. Furthermore, rising consumer health consciousness is expected to drive demand for functional foods in Asia-Pacific.

North America accounted for a sizable portion of global revenue, owing to rising consumer preference for healthy living and increased spending on nutritional dietary supplements. Furthermore, key manufacturers like Mars Inc., Lindt, and Barry Callebaut have boosted product penetration in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Functional Confectionery Market Share Analysis

The functional confectionery market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to functional confectionery market.

Some of the major players operating in the functional confectionery market are:

• Barry Callebaut (Switzerland)
• Olam International (Singapore)
• The Hershey Company (U.S.)
• Nestle SA (U.S.)
• Ingredion Incorporated (U.S.)
• Mars, Incorporated (U.S.)
• Koninklijke DSM N.V. (Netherlands)
• Kerry Group plc (Ireland)
• Tate & Lyle PLC (U.K.)
• Cargill, Incorporated (U.S.)
• Blommer Chocolate Company (U.S.)
• Foley's Candies LP (Canada)
• Puratos Group Nv (Belgium)
• Ferrero International S.A. (Italy)

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