The Asia Pacific (APAC) confectionery sector is booming and expected to be valued at US$54.1 billion in 2024.
Research from GlobalData shows the APAC confectionery sector to be the second fastest growing globally, growing at a compound annual growth rate (CAGR) of 3.5 per cent during 2019-2024.
The sugar confectionery category is leading the charge in terms of value while chocolate is projected to register the highest value CAGR of 5.6 per cent during the period from 2019 to 2024.
Sanchi Agarwal, Consumer Analyst at GlobalData, highlights a shift towards premium confectionery products in the APAC region due to a rise in disposable income and health consciousness among consumers.
“The APAC region is expected to register high value growth during 2019-2024 on account of rising income levels and growing demand for premium and high-quality confectionery products. In addition, the growth in the region will be driven by novel confectionery products targeted at young consumers with experimental taste palettes.”
While chocolate is anticipated to witness growth in consumption across all high potential countries, gum is anticipated to witness a decline during the period.
However, the sugar confectionery is likely to see rise in consumption share across Vietnam and Thailand and decline in New Zealand and Indonesia.
Mars, Mondelēz International and Perfetti Van Melle SpA are the leading market players in the APAC confectionery sector.
Mars held the highest value share in the gum category in 2019, and with the presence of most of the leading companies, sugar confectionery and chocolate remained the most competitive categories in the APAC in 2019.
Sensory indulgence and health and wellness are the top trends that get along very well with the APAC confectionery sector.
“In the APAC region, rising health consciousness among the consumers is resulting in the rapid shift in food habits. Therefore, the demand for healthy confectionery products, which are low in sugar or have ‘low-fat’ claims, is gaining traction in the region.
“Additionally, manufacturers are introducing confectionery products with ‘natural’ and ‘free from preservatives’ claims to appeal to these health-conscious consumers,” says Agarwal.