North America Candy Market Size (2024-2030)

The North America Candy Market reached a valuation of USD 66.10 billion in 2023 and is anticipated to achieve USD 95.45 billion by the conclusion of 2030. Across the forecast span of 2024-2030, the market is expected to expand at a Compound Annual Growth Rate (CAGR) of 5.39%.

The North American candy market is anticipated to experience growth in the coming year, driven by factors such as high disposable income and evolving consumer preferences in both developing and developed economies. The United States stands out as the largest market, commanding a significant share of confectionery volume. However, concerns about the health implications of high sugar content, particularly about obesity, are causing distress among North American consumers. As a result, there is a growing demand for healthier alternatives, including low-calorie options with functional ingredients. This trend is reflected in the increasing prevalence of functional claims on confectionery product labels. Additionally, the outbreak of the coronavirus pandemic has disrupted sales and production across various industries, including the candy market.

Key Market Insights:

North America's candy market is expected to register growth in the coming year due to high disposable income, and changing consumer preferences in developing and developed economies. The United States is the largest market accounting for a huge confectionery volume share. Customers are looking for healthier options, like low-calorie along with functional ingredient-based candy. Functional claims on confectionery product labels are increasing rapidly. Moreover, the outbreak of the coronavirus pandemic has affected various industries along with this market by disrupting sales and production.

Companies are executing several strategies like partnerships, new product development, mergers, and acquisitions to deliver innovative products and to enlarge their product portfolio to meet the growing demand.

North America Candy Market Drivers:

The surge in demand for chocolate candies.

The rise in demand for chocolate candies is anticipated to propel the growth of the candy market. Chocolate candies are integral to desserts during numerous global festivals, spanning from Halloween to Diwali and Eid. This widespread use of chocolate candies for various occasions is projected to drive market growth worldwide. Additionally, the introduction of new chocolate candy products has spurred demand, with innovations like chocolate candies infused with fruits and nuts contributing to market expansion on a global scale.

The burgeoning demand for candies during festive occasions is a significant driver for the global confectionery market.

The surge in demand for candies during festive occasions is propelling growth in the North American confectionery market. Traditionally, special events like Halloween, Christmas, Valentine's Day, and Easter drive significant consumer spending on confectionery products, whether as gifts or treats. These cultural and festive traditions fuel substantial purchases of confectionery, leading to seasonal peaks in the candy market. To leverage these opportunities, candy manufacturers often introduce themed packaging, limited edition flavors, and promotional campaigns, strategically boosting market expansion and consumer engagement.

The wide array of candy options, including both non-chocolate and chocolate varieties, has contributed to increased demand.

The availability of a diverse range of candies, encompassing both non-chocolate and chocolate variations, has resonated with consumers, prompting a surge in demand. This upswing is driven by the spontaneous purchasing behaviors exhibited by customers. Furthermore, evolving preferences and tastes among consumers in emerging economies have played a pivotal role in elevating candy sales throughout North America.

North America Candy Market Restraints and Challenges:

Health issues stemming from the consumption of candies, especially chocolate-based ones, are a growing concern.

Health concerns related to candy consumption, particularly those containing chocolate, are on the rise. These candies are linked to health issues such as obesity and dental problems. In children, regular consumption of chocolates can lead to tooth decay and infections. Similarly, adults who indulge excessively in chocolates may face obesity risks due to their high sugar, fat, and calorie content. Practicing moderation in candy consumption is crucial to address these health risks effectively.

North America Candy Market Opportunities:

The growing prevalence of smokers in the region is anticipated to drive up the consumption of chew candies in the foreseeable future.

Increasing demand for chew candies is anticipated due to the rising number of smokers in the region. Chew gums are sought after for their ability to reduce tobacco smell post-smoking, driving their popularity. The presence of numerous hypermarkets and supermarkets further fuels the expansion of the candy market globally, with major players like Walmart and Carrefour contributing significantly to revenue and sales.

The ongoing development and increasing purchasing power of consumers are key factors creating favorable opportunities for the candy market.

The continuous development and increasing spending capacity of consumers present lucrative opportunities for the candy market. Candies, popular among both children and young adults, witness demand driven by consumer preferences, population growth, and inclinations. Large multinational companies hold a competitive edge over medium-scale players, benefiting from economies of scale in manufacturing and procurement. Producing candies with reduced sugar content can unlock substantial revenue opportunities for key market players. Additionally, incorporating valued components, nutrients, and minerals into candies presents major players with the opportunity to increase revenue and market share.

NORTH AMERICA CANDY MARKET REPORT COVERAGE:

North America Candy Market Segmentation:

North America Candy Market Segmentation: By Product Type:

• Chocolate Candy
• Non Chocolate Candy

The North American candy market, segmented into chocolate and non-chocolate candy types, has seen a notable increase in consumer demand for chocolate candies. Preferred by individuals of all ages, chocolate flavors offer various health benefits, including reducing mortality rates and assisting in the treatment of ailments like bronchitis and depression. Dark chocolates, in particular, are recognized for their significant health advantages owing to their cocoa content, promoting proper blood flow and enhancing overall blood vessel functionality.

North America Candy Market Segmentation: By Distribution

• Supermarkets & Hypermarkets
• Online Retail
• Specialist Retailers
• Convenience Stores
• Others

The target market, categorized by distribution channels, includes Supermarkets and Hypermarkets, Convenience Stores, Specialist Retailers, Online Retail, and Others. Specialist stores are anticipated to experience growth due to the availability of a wide range of candy brands and confectionery products in one location. The expansion of convenience stores globally contributes significantly to the overall growth of the candy market. Online sales channels have witnessed substantial growth, especially during the global pandemic, with consumers preferring the convenience of shopping from home. Additionally, various discount offers available online further incentivize consumers to opt for online shopping.

Convenience stores have long been a go-to destination for impulse candy purchases, thanks to their widespread availability and extended operating hours. This channel serves consumers seeking instant gratification or making spontaneous purchases. Direct sales through manufacturer or brand websites offer personalized options and limited edition releases, appealing to consumers looking for a tailored buying experience or loyal to specific brands.

Online retailers have emerged as a dominant force in candy sales, driven by the convenience of doorstep delivery and a vast selection accessible with a few clicks. This channel is preferred by consumers valuing variety and ease of purchase. Specialty candy shops cater to those seeking artisanal, gourmet, or niche products, providing a unique shopping experience with rare finds and premium offerings not typically found elsewhere.

Supermarkets and hypermarkets remain central to candy sales, offering convenience and a diverse range of brands under one roof. These stores integrate candy seamlessly into consumers' regular shopping routines, ensuring easy access to other groceries. Each sales channel addresses distinct consumer needs and preferences: convenience stores excel in impulse buys, direct sales capitalize on brand loyalty and customization, online retailers provide unparalleled variety and convenience, specialty shops cater to niche markets, and supermarkets and hypermarkets offer accessibility and variety in a routine shopping environment.

North America Candy Market Segmentation: Regional Analysis:

• USA
• Canada
• Mexico

The USA is both the largest and fastest-growing market. Regionally, North America is poised to dominate the global candy market by 2029, attributed to the presence of key industry players and a substantial consumer base. The US alone drives demand with over 7.8 billion pounds consumed annually.

In terms of revenue, the North American candy market is projected to witness the fastest growth over the forecast period. This surge is fueled by a rising number of health-conscious consumers seeking confectionery free from artificial additives. Additionally, the region's youthful demographic is driving demand for unique candy flavors and textures. The market is further bolstered by the growing snacking trend and the popularity of convenience stores.

Expanding distribution channels, including online platforms and retail outlets such as drug stores, grocery stores, supermarkets, and hypermarkets, are driving the North American candy market. Responding to consumer health concerns, candy manufacturers are investing in reduced-sugar or sugar-free products. The trend towards health and wellness is also boosting sales of dark chocolate, known for its mineral content, fiber, and antioxidant properties, potentially reducing the risk of heart disease.

COVID-19 Impact Analysis on the North America Candy Market:

The spread of Covid-19 prompted widespread lockdowns across North America, impacting the food and beverages market. While chocolate consumption remained relatively unaffected, the candies market experienced disruptions in consumption patterns. Hypermarkets and supermarkets, the primary distribution channels for candies globally, were closed for an extended period due to lockdown measures, resulting in decreased candy sales. During this time, consumers prioritized stockpiling essential items, though chocolate, not classified as essential, still saw some sales, particularly for children and as a source of comfort for adults seeking indulgence during the lockdown.

Key Players:

1. Arcor
2. August Storck KG
3. Yildiz Holding
4. Cemoi
5. Chocoladefabriken Lindt & Sprungli AG
6. United Confectionary Manufacturers
7. Crown Confectionary Co. Ltd.
8. DeMet’s Candy Co.
9. Ezaki Glico Co. Ltd.
10. Ferrero Group