United States Confectionery Market Assessment, By Product Type, By Packaging Type, By Distribution Channel, By Region, Opportunities and Forecast, 2017-2031F

United States confectionery market was valued at USD 50.2 billion in 2023, expected to reach USD 71.39 billion in 2031, with a CAGR of 4.5% for the forecast period between 2024 and 2031. The market is majorly driven by changing consumer preferences, evolving lifestyles, and innovations in product development.

Chocolate confections are preferred by most of the individuals in the United States with demand for various types including dark chocolate, milk chocolate, and white chocolate, catering to the varied taste preferences of individuals. The demand for chocolate confections is followed by a larger market share held by sugar confections incorporating candies, jellies, and other such products. Nostalgic and retro candies are observing a resurgence, with people seeking familiar flavours and experiences.

Manufacturers are utilizing e-commerce platforms and digital marketing to tap the markets for their products. Online platforms provide better reachability and convenience to consumers. Moreover, digital marketing incorporating social media influencers play a vital role in shaping the choices that consumers make.

With a greater emphasis on sustainability these days, there's a focus on prioritizing transparency in supply chains by adopting eco-friendly practices. Consumers feel responsible buying confectioneries that are made using ethically sourced materials and sustainable manufacturing practices.

Health concerns related to sugar consumption pose a challenge for the United States confectionery market. Despite these challenges, the market seems flexible and resilient resulting from diversification of products and continuous innovations in the market growth.

In August 2023, global food business leader, Colombina, introduced ChewzMe candies in the United States. The flavors in Chew n' Crunch Stix and Tangy Turtlz, were launched under the ChewzMe range, in the form of sour gummy candies.

Innovation in Flavors and Inclusions Fuels the Demand for Confectionery

The United States confectionery market is significantly being driven by innovations in flavors and inclusions, enhancing the taste experiences of consumers. Manufacturers are continuously trying to introduce exclusive flavor combinations, exotic ingredients, and different textures to draw their target audience towards their products.

Fusion of traditional and global flavors is a notable trend in the market with manufacturers offering a multicultural twist to their consumers. Moreover, inclusions in the form of nuts, fruits, and other elements, help adding layers of texture to the product, giving it a premium perception, and catering to the diverse taste preferences of people.

In February 2023, Hostess Brands expanded its range by introducing Hostess Kazbars, a "first-of-its-kind" invention. The bars are layered with chocolate cake, creme, and candy, as well as caramel or chocolate fudge, and are coated in chocolate. They come in two flavours, chocolate caramel and triple chocolate.

Demand for Vegan Confectionery Drives the Market Growth

The confectionery market in the United States is propelled by the growing demand for vegan confectionery. Consumers are becoming increasingly environmentally conscious, compelling the manufacturers to create products that align with their evolving preferences for plant-based lifestyles. Not the vegans, but flexitarians and other consumers who look for alternative to traditional confectionery are drawn to these vegan offerings. Manufacturers are trying to meet the vegan standards by reformulating their products without compromising on taste and texture. Following the trend, in March 2023, The Hershey Company launched its first plant-based candy range with Reese's plant-based peanut butter cups and Hershey's Plant Based Extra Creamy with Almonds and Sea Salt. The new candies contain oats in place of milk. In another instance, in October 2023, Europe-based vegan chocolate brand, Vego, entered the United States market through Albertsons. The company makes chocolates using dairy-free creams and hazelnuts.

Chocolate Confections Hold the Largest Market Share

Chocolate confections hold the largest share in the United States confectionery market as these are popular among people of all ages. 88% of consumers in the United States prefer sharing chocolates with friends and family members at least half of the time they buy them. Moreover, 78% of adults find it acceptable to treat themselves with chocolates occasionally. Chocolates provide comfort and help uplifting the moods of the consumers. Additionally, it is a perfect option for gifting purposes, which further drives the demand for chocolate confectionery.

Following the trend, in May 2023, Ferrero North America launched Kinder Chocolate, made up of milk and chocolate as the key ingredients. The chocolate bar has a creamy, milky filling, which is specifically created keeping kids as the target audience.

Supermarkets/Hypermarkets are the Largest Distribution Channels

Confectionery products in the United States are majorly distributed through supermarkets and hypermarkets. These big retail stores offer great convenience and varieties of consumers by providing them one-stop shop for all their requirements. Furthermore, competitive pricing across confectionery category appeals to the consumers and affects their buying decision, leading to impulse purchases and driving the volume of sales. These giants strategically place the products near checkout counters to accelerate the demand. Companies look forward to use supermarkets and hypermarkets as their primary channel of distribution by collaborating with these big stores and providing bulk stocks to them at competitive rates.

In May 2023, Canada-based The Yumy Candy Company Inc., a low sugar, plant-based confectionery company, launched its products in the United States through Albertsons, one of the largest supermarket chains in North America. The company offers products which are gelatin-free, soy-free, gluten-free, with other non-GMO ingredients.

Future Market Scenario (2024 - 2031F)

Growing demand for healthier confectionery items is expected to be observed in future with more and more people getting health conscious. Reformulation of the products aligning with the latest health trends is likely to be witnessed.

Rising environmental concerns will make consumers to prioritize brands that display transparency in their supply chains. Eco-friendly packaging will be seen dominating the confectionery packaging industry, appealing to consumers looking for sustainable products.

Incorporation of global flavors and ingredients in the confections is likely to drive innovation in the United States confectionery market as people generally like to explore different cultures without compromising on taste.

Key Players Landscape and Outlook

United States confectionery market has a vast landscape with established companies and new players entering the market, competing for their respective market shares. Prominent players are expected to maintain their market share by offering innovative products, engaging into strong distribution networks, and creating brand recognition through various marketing strategies. In January 2024, with the successful completion of the acquisition, Mars, Incorporated added a new brand to its portfolio, Hotel Chocolat, one of the top premium chocolate brands in the United Kingdom.

However, new entrants are introducing distinct formulations utilizing sustainable practices disrupting the market and gaining the market share. As the demand for plant-based products witnesses a surge worldwide, confectionery market in the United States is poised for expansion and growth. Developing product portfolios and improving the online brand presence will lead to growth in sales in future.