North America Sugar Confectionery Market Share, Size, Trends, Industry Analysis Report, By Type (Hard-Boiled Sweets, Gums & Jellies, Caramels & Toffees, Medicated Confectionery, Others); By Distribution Channel; By Country; Segment Forecast, 2024 - 2032

North America Sugar Confectionery Market size was valued at USD 26.88 billion in 2023. The market is anticipated to grow from USD 28.10 billion in 2024 to USD 41.44 billion by 2032, exhibiting the CAGR of 5.0% during the forecast period.

The research report offers a quantitative and qualitative analysis of the North America Sugar Confectionery Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.

Industry Trends

The North American sugar confectionery market is a large and diverse industry that includes a wide range of products such as gummies, caramels, toffees, jellies, and other sweets. The market has experienced steady growth but still holds a dominating revenue share in the global market, driven by increasing consumer demand for confectionery products.

• For instance, according to the National Confections Association (NCA), chocolate and candy purchases are made by 99% of American households annually. Additionally, seasonal chocolate and candy sharing is perceived as a great American tradition by 78% of Americans.

The key driver of the North American sugar confectionery market is the increasing popularity of premium and gourmet candies. Consumers are willing to pay more for high-quality, unique, and handmade sweets that offer distinct flavors and textures. This trend has led to the emergence of small and medium-sized players in the market, offering specialty candies made with natural ingredients and unique flavor combinations.

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Also, the rise of e-commerce platforms has made it easier for these smaller players to reach a wider audience, further fueling the growth of the market. However, the market growth is affected by the increasing awareness of the negative health effects associated with excessive sugar consumption.

Key Takeaways

• The U.S. dominated the market and contributed over 69% of the share in 2023
• By type category, the hard-boiled sweets segment accounted for the largest market share in 2023
• By distribution channel category, the offline stores segment led the North American market in 2023

What are the market drivers driving the demand for the North America sugar confectionery market?

Growing trend of gifting confectionery on the occasion of traditional events fueling the sales of sugar confectionery.

In recent years, there has been an increasing inclination towards gifting sweets and chocolates during holidays, festivals, and other celebratory occasions. This is owing to the fact that sugary treats are often associated with warmth, joy, and happiness, making them ideal gift items for expressing good wishes and spreading cheer. For instance, as per the National Retail Federation's seasonal trends report, over 160 million Americans bought candies during Halloween in the year 2023. This indicates a rise in the consumption of confectionery during traditional events.

Moreover, the convenience and versatility of sugar confectionery products, such as boxed chocolates, candy baskets, and gummies, make them easy to share and enjoy among family, friends, and colleagues. As a result, the demand for sugar confectionery products witnesses a significant surge during festive seasons, such as Christmas, Easter, Halloween, and Thanksgiving, contributing substantially to the overall growth of the North American sugar confectionery market.

Which factor is restraining the demand for sugar confectionery?

The growing concerns regarding the negative health effects associated with excessive sugar consumption hinder market growth.

Nowadays, consumers are becoming more health-conscious and are actively seeking out alternatives to traditional sugary products, such as sugar-free or low-calorie sweets. This shift in consumer preferences is compelling manufacturers to reformulate their products and introduce new, healthier options.

In addition, governments and regulatory bodies are implementing policies and guidelines aimed at reducing sugar consumption, including taxes on sugary drinks and restrictions on advertising unhealthy foods to children. These factors are collectively limiting the growth potential of the North American sugar confectionery market as consumers turn away from traditional sugary treats and towards healthier alternatives.

Report Segmentation

The market is primarily segmented based on type, distribution channel, and country.

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Category Wise Insights

By Type Insights

Based on type analysis, the market is segmented on the basis of hard-boiled sweets, gums & jellies, caramels & toffees, medicated confectionery, and others. The North American market was heavily influenced by the popularity of hard-boiled sweets in 2023. Hard-boiled sweets are chewy candies that have a firm texture and come in various shapes and flavors. They were particularly popular among children and young adults, who enjoyed their sweet taste and playful texture. As a result, hard-boiled sweets accounted for a significant share of the sugar confectionery market in North America, with leading manufacturers such as Haribo and Jelly Belly offering a wide range of products to meet consumer demand. In addition, the convenience and affordability of hard-boiled sweets made them an attractive option for many consumers, contributing to their dominant market position.

By Distribution Channel Insights

Based on distribution channel analysis, the market has been segmented on the basis of offline stores and online platforms. The North American sugar confectionery market was led by distribution through offline stores in 2023, indicating that consumers in this region still prefer to purchase sweets and candies from physical retail locations rather than online platforms. This is due to factors such as the desire to see and taste the products before purchasing, the need for immediate satisfaction, or the preference for in-store experiences. Offline stores also offer consumers the opportunity to browse a wide range of products and receive personalized recommendations from experienced sales staff. In addition, many consumers may feel they need more time to purchase sugary treats online due to concerns about portion control and health implications.

Country-wise Insights

United States

The United States held a dominant revenue share in the North American market due to several factors, such as the country's large and diverse population, which creates a significant demand for sugary snacks and treats. In addition, the U.S. has a well-established retail infrastructure, with numerous supermarkets, convenience stores, and online platforms that offer a wide range of sugar confectionery products.

Also, the U.S. is home to many prominent players in the sugar confectionery industry, such as Mars, Inc., Hershey's, and Jelly Belly Candy Company, among others. These companies have strong brand recognition and an extensive distribution network, which enables them to cater to the demands of consumers across the country effectively. The U.S. has a relatively high per capita income compared to other countries in the region, which allows consumers to spend more on discretionary items like sugar confectionery.

Competitive Landscape

The North American market is competitive, with several key players competing for market share. Mars, Inc., one of the largest candy companies, has a significant presence in the region and offers a wide range of products such as M&M's, Snickers, and Twix. Hershey Company, another major player, has a strong portfolio of brands, including Reese's Peanut Butter Cups, Kit Kat, and Jolly Ranchers. These companies focus on innovation, brand extension, and strategic partnerships to maintain their market position and drive growth. They invest heavily in research and development to introduce new flavors, formats, and packaging options that appeal to changing consumer preferences.

Some of the major players operating in the North American market include:

• Ferrara Candy
• Ferrero
• Haribo
• Hershey
• Jelly Belly
• Mars Wrigley Confectionery
• Nestle SA
• Russell Stover
• Sugarfina
• The Kraft Foods Inc.
• Trader Joe's

Recent Developments

• In January 2021, Harpak-ULMA, a renowned global Original Equipment Manufacturer (OEM) in the packaging industry, primarily catering to the bakery and snacks sector, introduced a new initiative in North America. This initiative aimed to assist the bakery and confectionery market in enhancing their operational efficiency and flexibility.

Report Coverage

The North America Sugar Confectionery market report emphasizes on key countries across the region to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.

The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, type, distribution channel, and their futuristic growth opportunities.

North America Sugar Confectionery Market Report Scope

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