Online Platforms Driving Market Growth
Global sugar confectionery market is observing increased sales volume from online distribution channel especially in developed countries such as the U.S. and Canada. Internet retailing has turned out to be a significant revenue contributor in growth of the sugar confectionery industry. Although, the reach through this distribution channel is largely limited to non frozen category. Frozen or refrigerated items are slightly expansive due to the perishable nature of product whereas non frozen category has stable shelf life without the expense of controlled or regulated ambience.l
The growth of online platforms around the globe has given industry participants with new avenue of distribution. In addition, growing dependence on technology coupled with shipping and delivery convenience has greatly facilitated the development of online portals and platforms. The success of Amazon, Alibaba, Flipkart, and other online companies have assisted the market growth of sugar confectionery products by offering vendors of the industry with wider consumer segment
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Cannabis Infused Confectionery Pushing Market Growth
Cannabis infused confectionery is still by large is a niche segment. However, sugar and chocolate confectionery poses old connection with cannabis from historic times. With legalization of cannabis, few market players have capitalized on this concept by building niche but successful growing segment spanning over the entire spectrum of sugar confectionery industry.
However, this market concept is limited to countries which have allowed cannabis in mainstream sector. Thus, it's growth is restricted owing to the challenges pertaining to its legalization. Although, with more countries opening their own separate investigation units to work on the decriminalization of cannabis may open new market space for sugar confectionery market over the forecast period.
On the basis of product, market is bifurcated into hard boiled sweets, caramel & toffees, gums & jellies, medicated confectionery, mints, and others. Among this segment, gums & jellies segment is projected to dominate the market share in terms of revenue. The gums & jellies segment holds an inverse relationship with mint segment. Current trends suggest mints segment is observing declining trend which has pushed manufactures to divert their attention towards gums category. This trend is observed across North America region.
The medicated confectionery product segment is projected to witness healthy growth owing to the rising popularity of cannabis infused confectionery products. The use of the product item has widely gained popularity among consumer masses suffering from mental issues such as anxiety, sleep deprivation, and others.
Others product category comprises of nougat, liquorice, lollipops, and marshmallows. Within this category, liquorice and marshmallows are likely to remain the dominant product category especially in European and North America region respectively.
Distribution Channel Outlook
On the basis of distribution channel, market is segmented into retail stores, online platforms, and others. Within this category, online platforms are likely to observe highest compounded annual growth rate as compared to its counterparts. The rising dependence on technology coupled with systematic delivery operation has widely pushed the segment growth over the last few years. However, challenges associated with the delivery of frozen sugar confectionery products presents few hurdles in terms of pricing and logistics.
Retail stores segment is expected to dominate the market revenue share in 2019. However, it is likely to lose its share to online platforms over the forecast period. The emergence of global pandemic is likely to hit the retail sector hard and is likely to push the growth for online platforms as consumer masses is likely to practice social distancing over the next few years.
The key vendors of the industry are Jelly Belly Candy Company, AS Kalev, Mapro Foods Pvt. Ltd., Adams & Brooks Inc., Barambo, Perfetti Van Melle, Lotte Confectionery Co. Ltd., Ferraro, Mondelez International, and Nestle.
The industry participants are intensively focused on expanding their distribution network in order to cater larger audience target and enhance market presence. The vendors are dedicated in developing marketing techniques to penetrate higher level of market share.
Sugar confectionery is defined the compound rich with sugar and types of sugar. There are two varieties of sugar confection including fondant and boiled sweets.
Global Sugar Confectionery Market Segmentation
Gums & Jellies
Toffee & caramel
By Distribution Channel