Sugar-free Confectionery Market

Market Study on Sugar-free Confectionery: Global Market to Remain Dominated by North America and Europe

Sugar-free Confectionery Market Segmented By Sugar-free Conventional Confections and Sugar-free Chocolate Confections Type

Market Snapshot

As per a new study conducted on the sugar-free confectionery market by Persistence Market Research, North America dominates the global market currently with over 39% value share. Sugar-free chocolate confections account for around 62.9% share in the global market. Overall, the sugar-free confectionery market is worth is projected to reach a valuation of US$ 3.5 Bn by 2031.

Market Value (2021)

US$ 2 Bn

Projected Year (2031) Market Value

US$ 3.5 Bn

Value CAGR (2021-2031)

5.4%

Value Share – Top 5 Manufacturers

30%-40%

Find Out More about the Report Coverage

Companies

  • Perfetti Van Melle Group B.V.
  • Chocoladefabriken Lindt & Sprungli AG
  • Sugarless Confectionery
  • The Hershey Company
  • Abdallah Candies Inc.
  • Nestle S.A
  • Lily’s Sweets LLC
  • Asher’s Chocolate Company
  • Nova Chocolate
  • Dr. John’s Healthy Sweets
  • See’s Candy Shop, Inc.
  • Continental Candy Industries B.V.
  • August Storck KG
  • The Margaret River Chocolate Company
  • Atkinson’s Candy Co.
  • ChocZero Inc.
  • La Nouba
  • Albanese Candy
  • Artinci
  • Others (On Additional Request)

2016-2020 Demand Analysis of Sugar-free Confectionery Compared to 2021-2031 Market Outlook

From 2016-2020, the global market for sugar-free confectionery expanded at the rate of 4%. Major market driver is increasing demand due to rising population that is suffering from obesity and diabetics. Sugar–free confectionery has several nutritional benefits, making it an excellent compounding food ingredient.

Major demanding regions for sugar-free confectionery are North America and Europe. In both these regions, demand is expected to grow owing to the fact that they have more number of health-conscious people.

The U.S. holds a market share of 84.5% and the U.K. 13.3% in the North American and European market, respectively.

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How are Multiple New Entrants in the Sugar-free Confectionery Business Positively Influencing Market Growth?

A large section of the population is suffering from obesity and diabetes, leading to increasing demand for a variety of sugar-free products. New market players are viewing this demand as a business opportunity and are producing sugar-free confectionery products with nutritional benefits.

These new players are positioning their products to offer unique benefits that encourage consumers to view them as healthy alternatives. Major players are also acquiring new players to strengthen their position in the global market. In this competitive market, manufacturers are focusing on innovating their products lines.

sugar-free-confectionery-market

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How is Manufacturers’ Focus on Product Innovation Driving Demand for Sugar-free Confectionery Products?

Growing demand for less sugar consumption should ensure stable growth in the future for both, artificial and natural sweeteners. Manufacturers are using different approaches for sugar reduction depending on product category and customer requirement. They are launching products that are inherently less sweet and innovating products with artificial sweeteners.

Consumers are increasingly maintaining sustainable and healthy habits, which could be an opportunity for confectionery manufacturers. Developing products with no-added-sugar will bring better opportunities to manufacturers and drive market growth for sugar-free confectionery.

  • Lily's Sweets offers no-added-sugar confectionery and utilizes stevia to add sweetness to its products.

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Are Manufacturers Embracing Sugar-free Products for Competitive Advantage?

Increase in awareness among consumers about Western diets is making them move toward sugar-free diets. Surplus sugar calories beyond the body’s energy need can result in health consequences such as weight gain, high blood pressure, inflammation, and other diseases. Observing this outcome, manufacturers and their R&D teams are innovating products by eliminating sugar content.

Sugar-free confectionery products are gaining popularity among manufacturers as they can target a large consumer base, which directly increases a company’s profit and helps gain a competitive edge in the market.

  • According to the Food and Health Survey from the International Food and Information Council Foundation (IFIC), 80% of Americans are shifting from added sugar products to sugar-free products.

What’s Restraining Market Growth of Sugar-free Confectionery Products?

Polyols are sugar alcohols used as sweeteners in sugar-free confectionery products such as chewing gums, chocolates, candies, etc. They are also used in food items consumed by diabetic patients and health-conscious consumers. Polyols have fewer calories as compared to normal household table sugar, and are less likely to cause dental problems.

Consumption of more than 5 grams of polyols in every serving can lead to abdominal cramps, bloating, gastrointestinal issues, and nausea. Around 35%-70% of adult consumers experience significant symptoms with the consumption of polyols (more than 10 grams).

Continuous consumption of polyols can cause severe weight loss. Diabetic patients can suffer from peripheral nerves and eye damage due to the consumption of high concentrations of polyols. These allergies and side-effects in adults may hinder market growth to some extent.

Cocoa and sugar are important raw materials used in the production of chocolate confectioneries all over the world. Growing popularity of dark chocolate can be attributed to its possible health advantages. Dark chocolate, contrary to milk chocolate, has a double effect: it raises demand for chocolate products as well as cocoa, considering the requirement of cocoa beans per ounce in dark chocolate that is more than milk chocolate.

Sugar and cocoa prices have fluctuated in recent years due to rapid changes in production and demand. Unfavourable weather conditions, labour availability, stock ratios, crop diseases, and other financial crises affect cocoa and sugar yields, interfering with the smooth flow of demand and supply in the market.

The Ivory Coast and Ghana produce more than 70% of the world's cocoa. Situations in these countries, such as political turmoil, weather-related events, or border disruptions, cause global cocoa supply to fluctuate.

Country-wise Insights

Why is the U.K. a Leading Market for Sugar-free Confectionery in Europe?

The market for sugar-free confectionery is expected to see significant growth in the U.K. with a value share of around 13.3%. Demand for no-added sugar products in the European region is positively influencing market growth here.

Increasing consumer preference for sugar-free confections, emphasising tooth-friendliness and calorie-reduction, is aiding market growth.

Which Country Holds the Largest Share in the South Asia Market?

India accounts for a major share in the South Asian market for sugar-free confectionery. This is due to growing health and nutritional benefits of no-added sugar products. Market share of India in South Asia is around 46.9%.

Category-wise Insights

Which Type of Sugar-free Confectionery is Most Demanded across Regions?

Based on type such as sugar-free conventional confection and sugar-free chocolate confection, sugar-free chocolate confection is a highly demanded and consumed type of sugar-free confectionery item.

Market value share of sugar free chocolate confections is 62.9%. Demand for sugar-free chocolate confection is high due to growing popularity of healthy diets among consumers.

How are Different Sales Channels Complementing Market Growth?

Sugar-free confectionery items are offered by various channels such as hypermarkets/supermarkets, speciality stores, convenience stores, and online stores.

The hypermarkets/supermarkets segment is valued at over US$ 1 Bn in 2021, with speciality stores showing a significant growth at a CAGR of 5.9%.

Impact of COVID-19 Crisis

The spread of COVID-19 led to subsequent lockdown measures that have had an influence on the market for sugar-free confectionery. Due to food safety concerns, leading sugar-free confectionery producing and exporting countries announced bans. As a result, there was a gap between demand and supply, leading to a decline in the production of sugar-free confectionery products.

As the situation stabilized, people have begun to pay attention to their eating habits and have expressed a desire for a well-balanced diet that is high in nutrients. Furthermore, increased focus on increasing health conscious and rising diabetic population will benefit market growth.

Competitive Landscape

Key players are inclined toward innovation, development, and expansions to enhance the nutritional benefits of these products. Producers are focused on enhancing their innovation capabilities and quality of product.

  • In 2019, Chocoladefabriken Lindt & Sprüngli AG invested in production facilities in the U.S. This will help it to the volume growth of products in the long run, and expansion of its logistics network in North America.
  • August Storck KG delivers quality products for a higher level of customer satisfaction. The brands of the company are designed by keeping customer satisfaction on high priority. The company uses state-of-the-art production equipment, best ingredients, and transparent quality control standards to produce high-quality products.

Sugar-free Confectionery Industry Report Scope

Attribute

Details

Forecast period

2021-2031

Historical data available for

2016-2020

Market analysis

USD million for value

Key regions covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key countries covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key segments covered

  • Type
  • Sales Channel
  • Region

Key companies profiled

  • Albanese Candy
  • La Nouba
  • Sugarless Confectionary
  • Artinci
  • ChocZero Inc.
  • Atkinson Candy Company
  • August Storck KG
  • Asher’s Chocolate Company
  • Lily's Sweets, LLC
  • Dr. John’s Healthy Sweets
  • See’s Candy Shop, Inc.
  • Perfetti Van Melle Group B.V.
  • Chocoladefabriken Lindt & Sprüngli AG
  • The Hershey Company
  • Nestlé S.A.
  • Continental Candy Industries B.V.
  • Nova Chocolate
  • Abdallah Candies
  • The Margaret River Chocolate Company

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Sugar-free Confectionery Industry Research by Category

Type:

  • Sugar-free Conventional Confections
    • Boiled Hard Candy
    • Sweets
    • Gummies
    • Chews & Jellies
    • Others (peppermint patties, marshmallows)
  • Sugar-free Chocolate Confections
    • Chocolate Bars
    • Chocolate Crunch Balls
    • Chocolate Candy
    • Caramel-filled Chocolate
    • Others

Sales Channel:

  • Hypermarkets/Supermarkets
  • Speciality Stores
  • Convenience Stores
  • Online Retail

Enquiry before Buying

  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts of Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses the demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Persistence Market Research speaks to stakeholders across the spectrum, including c-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Media Release

- FAQs -

The global sugar-free confectionery market is currently valued at over US$ 2 Bn.
Production of confectionery products with low-calorie sweeteners, increase in number of consumers suffering from obesity and diabetes, online retail becoming the best alternative to traditional retailing, and multiple new entrants are driving market growth.
From 2016 to 2020, sales of sugar-free confectionery increased at a CAGR of 4%.
Demand for sugar-free confectionery are projected to increase at 5.4% CAGR and be valued at over US$ 3.5 Bn by 2031.
Increasing demand for natural sweeteners in confectionery products, no added sugar claims influencing consumer purchasing patterns, and emergence of grab-and-go food products are key trends in this space.
Perfetti Van Melle Group B.V., Chocoladefabriken Lindt & Sprüngli AG, The Hershey Company, Nestlé S.A., and August Storck KG are the top 5 sugar-free confectionery manufacturers accounting for around 30% to 40% market share.
The U.K., followed by France, is set to be the most-eyed market in the European region.
The market in China is anticipated to reach US$ 371 Mn by 2031, while that in India is set for a valuation of US$ 134 Mn.
The global sugar-free confectionery market is currently valued at over US$ 2 Bn.
Production of confectionery products with low-calorie sweeteners, increase in number of consumers suffering from obesity and diabetes, online retail becoming the best alternative to traditional retailing, and multiple new entrants are driving market growth.
From 2016 to 2020, sales of sugar-free confectionery increased at a CAGR of 4%.
Demand for sugar-free confectionery are projected to increase at 5.4% CAGR and be valued at over US$ 3.5 Bn by 2031.
Increasing demand for natural sweeteners in confectionery products, no added sugar claims influencing consumer purchasing patterns, and emergence of grab-and-go food products are key trends in this space.
Perfetti Van Melle Group B.V., Chocoladefabriken Lindt & Sprüngli AG, The Hershey Company, Nestlé S.A., and August Storck KG are the top 5 sugar-free confectionery manufacturers accounting for around 30% to 40% market share.
The U.K., followed by France, is set to be the most-eyed market in the European region.
The market in China is anticipated to reach US$ 371 Mn by 2031, while that in India is set for a valuation of US$ 134 Mn.

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