Confectionery Ingredients Market Size to Reach USD 92.19 Bn in 2025

Confectionery Ingredients Market Size, Growth, and Trends 2025 to 2034

The global confectionery ingredients market size is expected to grow from USD 92.19 billion in 2025 to USD 165.96 billion by 2034, at a CAGR of 6.75% over the forecast period from 2025 to 2034. This market growth is fueled by the rising consumer demand for premium and innovative sweet products, increasing adoption of natural and functional ingredients, and the growing influence of convenience-driven snacking and indulgence trends worldwide.

Last Updated: 16 September 2025 Category: Food & Beverages Ingredients Insight Code: 5837 Format: PDF / PPT / Excel

Confectionery Ingredients Market Size, Share and Top Companies

The global confectionery ingredients market size was calculated at USD 86.36 billion in 2024 with projections indicating a rise from USD 92.19 billion in 2025 to approximately USD 165.96 billion by 2034, expanding at a CAGR of 6.75% throughout the forecast period from 2025 to 2034. Growing demand for the artisanal and premium confectionery and demand for natural ingredients expanding the market. 

Confectionery Ingredients Market Size 2025 to 2034

Key Highlights

  • By region, Asia Pacific dominated the global market with the largest share of approximately 38% in 2024, due to growing urban population and growing demand for confectionery. 
  • By region, North America is expected to grow at a notable CAGR from 2025 to 2034, spurred by consumer interest in more nutritious and natural products. 
  • By ingredient type, sweeteners segment held the major market share of approximately 28% in 2024, propelled by the evolving food habits and lifestyles of consumers. 
  • By ingredient type, dairy & milk derivatives segment is projected to grow at a CAGR in between 2025 and 2034, due to their nutritional benefits and functional properties. 
  • By form, powder segment contributed the biggest market share of approximately 40% in 2024, because of its extended shelf life that decreases spoilage and waste. 
  • By form, liquid/syrup segment is expanding at a significant CAGR in between 2025 and 2034, because of consumer preferences for convenient, ready-to-use ingredients. 
  • By application, chocolate confectionery segment dominated the market by holding the share of approximately 35% in 2024, stems from chocolate's widespread attractiveness and its adaptability in integrating functional ingredients. 
  • By application, gummies & jellies segment is expected to grow at a significant CAGR over the projected period, due to increasing preference for jellies and gummies as convenient, pleasurable, and nutritious substitutes. 
  • By end user, large multinational producers segment held the major market share of approximately 60% in 2024, due to their powerful brand awareness, broad global distribution channels.
  • By end user, regional/artisanal confectioner segment is projected to grow at a CAGR between 2025 and 2034, due to consumer preferences for premium, high-quality, and distinctive products. 

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 6.75%
Market Size in 2025 USD 92.19 Billion
Market Size in 2026 USD 98.41 Billion
Market Size by 2034 USD 165.96 Billion
Largest Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Confectionery Ingredients Market Growth Factors 

Sugar candies, chocolates, and other confectionery ingredients are widely used in a variety of industries to make cereal bars, aerated sweets, coatings, fillings, caramel, and many other products. The primary driver of the market's expansion is thought to be rising customer desire for decadent and inventive sweet delicacies. To satisfy shifting customer tastes and spark consumer interest, confectionery makers are always coming up with new and fascinating items. This demand is also being fueled by government programs that support regional artisanal companies and small-scale confectionery manufacturers.

  • Consumers wish to understand precisely what they are consuming to make healthier choices. They look for sugary delights made with familiar, natural ingredients and want to steer clear of synthetic additives and preservatives. Confectionery brands are reacting with natural sweeteners, plant-derived substitutes, and organic choices. 
  • The growth of functional sweets is increasing the need for ingredients boosted with probiotics, collagen, and fiber, providing both pleasure and health advantages. Shoppers are seeking chocolates high in protein containing whey or pea protein, fiber-rich snack bars made with chicory root for digestive health, and superfood chocolate bars featuring chia seeds or acai for an antioxidant enhancement. 
  • The growth of premium and artisanal sweets has led to a heightened fascination with high-quality components like premium chocolates and distinctive additions. Moreover, sustainability and ethical sourcing methods are becoming more significant, affecting ingredient choices and manufacturing processes. 

Market Opportunity 

Innovation In Technology and Ingredients Expanding the Market 

Innovations in technology and ingredient effectiveness are driving the market ahead. The creation of multifunctional ingredients that enhance texture, flavor, and shelf life is creating new opportunities for the development of confectionery products. This has enabled producers to explore new product types and tastes, addressing the continuously changing consumer likes. Moreover, the integration of novel emulsifiers and hydrocolloids is facilitating the creation of confectionery with improved sensory characteristics and stability, thereby expanding the variety of confectionery products accessible in the marketplace. 

Market Challenge 

Challenges of Quality, Standardization and Sustainability 

A key challenge in the confectionery ingredients market is ensuring product quality and consistency in various regional markets. Variations in consumer preferences and tastes, along with differing regulatory requirements in various regions, make product standardization challenging. Moreover, the growing recognition of the environmental effects of ingredient sourcing, especially concerning cocoa, has increased pressure on businesses to implement sustainable practices, which can be costly and complicated to execute on a worldwide level.

Confectionery Ingredients Market Regional Insights

Asia Pacific Dominated the Confectionery Ingredients Market in 2024.  

Asia Pacific region, particularly China and India, has the highest populations, and these figures are projected to increase. Urban populations in the Asia Pacific area are increasingly drawn to Western cuisine, prompting many companies to boost production levels and implement innovative manufacturing techniques to produce superior products. The rise of urbanization and globalization has enhanced the availability and accessibility of confectionery products via supermarkets, convenience stores, online shopping platforms, and specialty stores. The lifestyles of urban consumers focused on convenience result in increased impulse buying and snacking while on the move. Producers are expanding their product offerings by incorporating functional components, organic herbal ingredients, tropical fruits, and unique nut-based flavors to satisfy evolving consumer preferences. 

India Confectionery Ingredients Market 

India's expanding middle class, along with rising disposable incomes, is greatly enhancing the consumption of confectionery. Urbanization has exposed consumers to international brands and luxury items, resulting in greater expenditures on indulgent products. The National Institutes of Health anticipates that diabetes cases in India will reach 134 million by 2045, underscoring a critical public health concern. In response to this demand, producers are creating low-calorie, sugar-reduced, and functional candies that maintain flavor without increasing health risks. Health-minded individuals are progressively choosing sugarless and reduced-calorie alternatives. Innovations featuring natural ingredients such as jaggery, honey, and millets meet this need. Nutrient-enriched functional sweets with immunity-enhancing benefits also attract this expanding demographic. India boasts a relatively youthful demographic, featuring a median age of 28.4 years. Over 40% of the population is below 25 years old. Indian Millennials and Gen Z are discovering fusion tastes and high-end choices.

Confectionery Ingredients Market Share, By Region, 2024 (%)

North America expects the significant growth during the forecast period. In North America, the confectionery ingredients market is undergoing a transformation towards healthier choices, spurred by consumer interest in more nutritious and natural products. This has resulted in a growth of items that use natural sweeteners and ingredients, along with a surge in vegan and gluten-free choices. Moreover, there is an increasing trend of integrating functional components like probiotics and superfoods into candy products. 

U.S. Confectionery Ingredients Market

The U.S. confectionery ingredients market is a lively and active sector, witnessing significant growth due to various factors that lead to the sweet prosperity of the industry. A key factor fueling this market is the consistent affection for candy products shared by consumers across all age groups. From chocolates and sweets to gum and marshmallows, the craving for an enjoyable and varied selection of goodies drives the necessity for a broad spectrum of confectionery components. Consumer choices also significantly influence the market for confectionery ingredients. With the increasing awareness of health, there is a heightened demand for healthier options and cleaner labels in candy products. This has resulted in a heightened interest in natural and organic components, as consumers look for products that match their preferences. 

Segmental Insights 

Ingredient Type Insights

Why did the Sweetener Segment Dominate the Confectionery Ingredients Market in 2024?

Sweetener segment led the confectionery ingredients market in 2024, propelled by the evolving food habits and lifestyles of consumers, the confectionery industry is experiencing growth. The need for sugar alternatives like polyol sweeteners, high-intensity sweeteners, and rare sugars is anticipated to rise during the forecast period. Consumers choose high-intensity sweeteners like aspartame, sucralose, saccharin, and cyclamates over sugar because they have little or no calories. Shoppers look for sugar substitutes to aid in weight control, diabetes, and oral care, whereas producers utilize novel sweeteners such as stevia and sucralose to satisfy these demands and develop a variety of products.

Dairy & Milk Derivatives Segment is Observed to Grow at the Fastest Rate During the Forecast Period. 

Dairy and milk derivatives like milk powders, whey proteins, casein, and lactose are appreciated for their nutritional advantages, functional characteristics, and diverse uses in food manufacturing. The demand for dairy ingredients has also been greatly enhanced by health awareness and nutrition trends. Dairy components are abundant in vital nutrients such as calcium, protein, and vitamins, which are important for supporting bone health, muscle development, and general wellness. This market encompasses various products derived from milk, including milk powder, whey protein, lactose, casein, and more.

Form Insights

Which Form of the Confectionery Ingredient Dominated the Confectionery Ingredients Market in 2024?

Powder segment held the dominating share of the confectionery ingredients market in 2024, because of its extended shelf life that decreases spoilage and waste, along with its convenient handling, storage, and transport, streamlining logistics. Powders provide flexibility and accurate measurement, enabling reliable outcomes across various uses, such as cocoa powder for chocolate items and powdered sugar for sweetening and garnishing.

Liquid/Syrup Segment is Seen to Grow at a Notable Rate During the Predicted Timeframe. 

Because of consumer preferences for convenient, ready-to-use ingredients that blend effortlessly into products such as candies, chocolates, and baked items. These components enhance texture and consistency, delivering a smooth, non-gritty result, and their adaptability aids in the creation of new products. 

Application Insights

How did the Chocolate Confectionery Segment Dominate the Confectionery Ingredients Market in 2024?

Chocolate confectionery segment dominated the market in 2024. This primarily stems from chocolate's widespread attractiveness and its adaptability in integrating functional components. Producers are progressively incorporating functional components such as protein, vitamins, minerals, probiotics, and adaptogens into chocolate items, rendering them both luxurious and health-oriented. Dark chocolate, specifically, is frequently utilized in functional sweets because of its perceived health advantages, including antioxidants and possible benefits for heart health. Consumer interest in healthier options without compromising taste has driven the demand for functional chocolate. Robust marketing, trends in premiumization, a culture of gifting, and innovations in sustainable and health-oriented products continue to drive its growth in developed and developing markets.

Gummies & Jellies Segment is Expected to Grow at the Fastest Rate in the Market During the Forecast Period. 

This expansion is linked to the heightened demand for functional food, the surge in health-aware consumer habits, and the increasing preference for jellies and gummies as convenient, pleasurable, and nutritious substitutes for standard snack and supplement choices. Functional gummies and jellies enriched with vitamins, minerals, probiotics, and other healthful components provide an attractive option for consumers looking for convenient and enjoyable methods to add essential nutrients to their diets. These items are easy to use and are available in various flavors and types that attract a wider audience. 

End User Insights

Which End User Segment Dominated the Confectionery Ingredients Market in 2024?

Large multinational producers segment held the largest share of the market in 2024, due to their powerful brand awareness, broad global distribution channels, and capacity to fund innovative products and cutting-edge manufacturing technologies. Their size enables them to attain cost savings via large-scale purchasing and connected supply chains, while their marketing influence aids them in successfully advertising new products. Companies like Cargill and ADM utilize their scale to create innovative offerings, oversee intricate supply chains, and provide an extensive range of top-notch, ready-to-use ingredients at competitive rates. 

Regional/Artisanal Confectioners Segment is Observed to Grow at the Fastest Rate During the Forecast Period.

Due to consumer preferences for premium, high-quality, and distinctive products, which boosts the need for specialized ingredients. This trend is driven by higher disposable incomes, greater interest in functional ingredients, unique flavor profiles, and the increasing popularity of e-commerce and local cuisine. The growing admiration for artisan products and distinctive, locally inspired tastes is fostering a demand for region-specific ingredients and genuine items. Artisanal makers are trying out a range of flavors, including fusion combinations that merge classic and contemporary ingredients, which fuels the need for varied confectionery components

Recent Developments in the Confectionery Ingredients Market

Target Flavors

  • Launch: In June 2025, Target Flavors has revealed the introduction of Mahacha, a cutting-edge flavor that combines three tastes: mango, habanero, and chamoy. Developed by Target Flavors’ R&D team, Mahacha aims to attract various tastes, the company states. (Source: SF&WB)

OSF Flavors

  • Launch: In July 2025, OSF Flavors, known for its tailored food and beverage flavors utilizing natural and organic components, introduced Angel Hair Chocolate Flavor, allowing food and beverage uses beyond chocolate to engage in the confectionery social media trend. (Source: Candy Industry)

Altinmarka

  • Launch: In March 2025, the Turkish confectionery company Altinmarka introduced a new product range featuring an innovative sustainable chocolate, following a collaboration on ingredients with the ethically-oriented Swiss company Koa, reports Neill Barston. Altinmarka collaborates with Koa, a Swiss-Ghanaian scale-up those partners with more than 5,000 small-scale farmers in Ghana to source its cocoa fruit ingredients. (Source: Confectionery Production)

Confectionery Ingredients Market Leading Companies

Confectionery Ingredients Market Companies

Segments Covered in the Report

By Ingredient Type

  • Sweeteners
    • Bulk sugars (sucrose, liquid sugars, HFCS)
    • Sugar alcohols (sorbitol, xylitol, erythritol)
    • High-intensity sweeteners (natural: stevia, monk fruit; artificial: sucralose, aspartame)
  • Cocoa & Derivatives
    • Cocoa liquor / mass
    • Cocoa butter
    • Cocoa powder
  • Dairy & Milk Derivatives
    • Milk powders (whole, skim)
    • Whey proteins (WPC, WPI)
    • Casein & caseinates
    • Lactose
  • Fats & Oils
    • Cocoa butter equivalents & replacers (CBE/CBR/CBI)
    • Vegetable fats & oils (palm, coconut, sunflower)
    • Butterfat
  • Emulsifiers & Stabilizers
    • Lecithin
    • Mono- & diglycerides
    • PGPR
    • Hydrocolloids (gelatin, pectin, carrageenan, xanthan)
    • Modified starches
  • Flavors
    • Natural flavors (vanilla, fruit, nut)
    • Artificial flavors
    • Flavor systems / masking agents
  • Colorants
    • Natural colorants (carotenoids, anthocyanins, beet, spirulina)
    • Synthetic colorants
  • Nuts, Seeds & Inclusions
    • Roasted nuts
    • Seeds
    • Dried fruit inclusions
  • Fruit Preparations
    • Purees & concentrates
    • Fillings & jams
    • Pieces & inclusions
  • Fillings & Centres
    • Caramel & toffee
    • Cream & ganache
    • Fondant & pastes
    • Nut pastes
  • Nutritional & Functional Ingredients
    • Protein isolates & concentrates (soy, whey, pea)
    • Fibers & bulking agents (inulin, polydextrose)
    • Vitamins & minerals
    • Probiotics & antioxidants
  • Preservatives & Acids
    • Organic acids (citric, malic)
    • Sorbates & benzoates
    • Natural antimicrobials
  • Coating & Glazing Agents
    • Sugar syrups
    • Shellac & natural glazes
    • Alternative glazing agents
  • Processing Aids
    • Enzymes (invertase, amylase)
    • Anti-caking agents
    • Microencapsulation systems

By Form

  • Powder
  • Granules/Crystals
  • Liquid/Syrup
  • Paste
  • Emulsion
  • Solid inclusions

By Application

  • Chocolate confectionery
  • Hard candies & boiled sweets
  • Gummies & jellies
  • Toffees & caramels
  • Chewing gum
  • Marshmallows & aerated confectionery
  • Filled confectionery
  • Compound coatings

By End-User

  • Large multinational confectionery producers
  • Regional & artisanal confectioners
  • Private label / contract manufacturers
  • Bakery & ice cream processors (with confectionery applications)

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The confectionery ingredients market was valued at USD 86.36 billion in 2024 and is projected to reach USD 165.96 billion by 2034, growing at a CAGR of 6.75%, driven by demand for premium, artisanal, and health-oriented confectionery.

Consumers are prioritizing healthier indulgence, seeking sugar alternatives, plant-based ingredients, and functional additives. Premiumization and sustainability are also reshaping purchasing decisions.

Sweeteners held the largest share (~28% in 2024) due to the growing adoption of low-calorie and natural sugar alternatives, while dairy & milk derivatives are projected to grow fastest owing to their nutritional benefits.

Chocolate confectionery dominated with a 35% share in 2024, fueled by its universal appeal and integration with functional ingredients, while gummies & jellies are expected to grow fastest due to convenience and health appeal.

Advances in multifunctional ingredients, emulsifiers, and hydrocolloids are improving product quality, shelf life, and functionality, enabling manufacturers to develop diverse and innovative confectionery offerings.

Asia Pacific accounted for ~38% of global share in 2024, driven by rapid urbanization, rising middle-class income, and growing consumer demand for Western-style confectionery.

The market is moderately consolidated, with global leaders like Cargill, ADM, Barry Callebaut, Ingredion, Kerry Group, and Tate & Lyle dominating through scale, R&D, and global distribution networks.

The future will be shaped by health-driven innovation, clean-label products, sustainability practices, and technological advancements making the industry more dynamic, premium-focused, and consumer-centric.