Report

Candy Market Analysis

The Candy Market was valued at USD 75.35 billion in 2025 and estimated to grow from USD 78.81 billion in 2026 to reach USD 98.66 billion by 2031, at a CAGR of 4.59% during the forecast period (2026-2031). Despite inflationary pressure and fast-evolving wellness habits, the candy market preserves demand by anchoring products to cultural rituals, celebratory gifting, and indulgent snacking. Rising premiumization, continuous flavor experimentation, and digital commerce adoption underpin steady value gains, while acute cocoa price swings and tighter sugar-reduction rules influence cost structures. Category resilience also reflects the candy market's balanced product mix, with chocolate commanding the largest revenue pool and non-chocolate segments absorbing texture-driven innovation waves. Competitive intensity remains moderate as global majors pursue acquisitions and manufacturing upgrades to secure scale benefits and shield margins from raw-material

Global Candy Market Trends and Insights



Premium and artisanal candy demand surge

The candy market is witnessing a significant boost due to the rising demand for premium and artisanal candies. Consumers are increasingly seeking high-quality, unique, and handcrafted confectionery products that offer superior taste and innovative flavors. This trend is driven by a growing preference for indulgent experiences and the willingness to pay a premium for products perceived as luxurious or exclusive. Additionally, the emphasis on natural and organic ingredients in artisanal candies aligns with the evolving consumer focus on health and wellness. Artisanal candies often feature clean labels, free from artificial additives, which further attract health-conscious consumers. The premium and artisanal candy segment is also benefiting from the growing trend of gifting premium confectionery items during festive seasons, celebrations, and special occasions, as these products are often seen as thoughtful and sophisticated gifts. Furthermore, the expansion of e-commerce platforms and direct-to-consumer channels has enabled manufacturers to reach a broader audience, including niche markets, while offering personalized and customizable options.

Expansion of organized retail and e-commerce

The rapid expansion of organized retail and e-commerce is a significant driver of the global candy market. Organized retail chains provide consumers with easy access to a wide variety of candy products, while e-commerce platforms offer the convenience of purchasing these products online. The growth of these channels is further fueled by impulse buying, facilitated by social media integration, subscription box services, and personalized recommendation algorithms that increase basket sizes. Additionally, the expansion of organized retail in emerging markets, particularly in the Asia-Pacific region, is creating a robust distribution infrastructure that supports the penetration of both domestic and international brands. Modern trade formats in these regions also provide temperature-controlled environments, which are essential for preserving chocolate in tropical climates. This dual-channel growth is enhancing product availability and accessibility, thereby fueling market demand.

Rising health consciousness and sugar reduction

Health-conscious consumers push for reduced sugar intake, which acts as a significant restraint in the candy market. With increasing awareness of the adverse effects of excessive sugar consumption, consumers are shifting toward healthier alternatives. According to the International Diabetes Federation (IDF), approximately 589 million adults (20-79 years) were living with diabetes in 2024, and this number is projected to rise to 853 million by 2050 . This alarming increase in diabetes cases highlights the growing need for sugar-free or low-sugar products, as individuals with diabetes and those at risk are actively avoiding high-sugar foods, including traditional candies. Additionally, governments and health organizations worldwide are implementing stricter regulations and campaigns to reduce sugar consumption, further pressuring candy manufacturers to adapt. These factors collectively compel candy producers to invest in research and development to create healthier alternatives, such as candies made with natural sweeteners or sugar substitutes.

Other drivers and restraints analyzed in the detailed report include:

Continuous flavour and texture innovationGrowing gifting culture and seasonal spikesVolatile cocoa and sugar commodity prices

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2025, chocolate candy dominates the candy market with a substantial 54.01% share. This dominance highlights its established consumer preference, driven by its rich taste, variety, and cultural significance across global markets. The segment benefits from strong brand loyalty, frequent product innovations, and seasonal demand spikes during holidays and celebrations. Additionally, the increasing availability of premium and artisanal chocolate options has further solidified its position in the market. Manufacturers are also focusing on health-conscious consumers by introducing low-sugar, organic, and vegan chocolate variants, which are gaining traction.

On the other hand, the pastilles, gums, jellies, and chews segment is projected to grow at a robust 8.30% CAGR through 2031. This growth is primarily attributed to advancements in texture innovation, which enhance the sensory experience for consumers. Social media trends also play a pivotal role in driving demand, as visually appealing and unique products gain popularity among younger demographics. The segment's versatility in flavors and formats, coupled with its appeal as a fun and convenient snack option, continues to attract a diverse consumer base globally. Additionally, the increasing focus on functional candies, such as those infused with vitamins or other health benefits, is expanding the segment's reach.

In 2025, sugar-based candies dominate the candy market with a substantial 79.15% share. This dominance can be attributed to their widespread consumer appeal, affordability, and extensive product variety. Sugar-based candies continue to attract a broad demographic, ranging from children to adults, due to their traditional flavors, textures, and nostalgic value. Additionally, the strong presence of established brands and their consistent innovation in flavors and packaging further bolster the segment's market position. Despite growing health concerns, sugar-based candies remain a staple in the confectionery industry, particularly in emerging markets where regulatory pressures are less stringent.

Conversely, sugar-free and reduced-sugar alternatives are gaining significant traction, recording a notable CAGR of 7.12% through 2031. This growth reflects a shift in consumer preferences driven by increasing health awareness and the rising prevalence of lifestyle-related diseases such as diabetes and obesity. Regulatory pressures in developed markets, including stricter labeling requirements and sugar reduction initiatives, are also propelling the demand for these alternatives. Manufacturers are responding by introducing innovative products that use natural sweeteners, such as stevia and monk fruit, to cater to health-conscious consumers without compromising on taste. This segment is expected to witness sustained growth as consumers prioritize healthier options and governments continue to enforce sugar reduction policies globally.

The Candy Market Report is Segmented by Product Type (Chocolate Candy, Non-Chocolate Candy, and More), Ingredient Type (Sugar-Based Candies, Sugar-Free Candies), Category (Mass, Premium), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and More), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

In 2025, North America holds a 35.92% share of the candy market, driven by established consumption patterns, a robust distribution network, and strong seasonal gifting traditions that boost premium pricing during major holidays. The region benefits from a well-developed retail infrastructure, which supports the availability of a wide range of candy products, catering to both mass-market and premium consumers. Additionally, high per-capita consumption rates and a preference for innovative product offerings further solidify North America's position as a key player in the global candy market. The mature nature of the market allows companies to implement sophisticated marketing strategies and leverage consumer loyalty effectively.

Europe represents a significant segment of the candy market, underpinned by its premium chocolate traditions, artisanal production heritage, and increasingly stringent sustainability regulations shaping industry practices. Diverse consumer preferences across countries create opportunities for localized product development and flavor innovation. EU packaging regulations further drive sustainable packaging adoption, influencing global industry standards. Major markets such as Germany, the United Kingdom, France, and Italy exhibit distinct consumption patterns and regulatory requirements, while Eastern Europe shows growth potential due to rising disposable incomes and the spread of Western consumption trends.

Asia-Pacific emerges as the fastest-growing region in the candy market, with a projected CAGR of 7.06% through 2031. Urbanization, rising middle-class incomes, and increasing market penetration in countries with historically low per-capita candy consumption drive this growth. China leads the region with double-digit growth in candy consumption, attracting significant investments from multinational companies in production and distribution. India, Japan, Australia, and Southeast Asia present unique opportunities and challenges, ranging from regulatory compliance to cultural preferences influencing product formulation and marketing strategies. South America, Middle East, and Africa represent emerging markets with significant long-term potential despite current smaller market shares, benefiting from economic development, population growth, and increasing exposure to global confectionery brands through improved distribution networks and digital connectivity.

List of Companies Covered in this Report:

Mars, Incorporated Mondelez International, Inc. Nestle SA Ferrero International S.A. The Hershey Company Perfetti Van Melle Group B.V. Haribo GmbH & Co. KG Jelly Belly Candy Company August Storck KG Parle Products Private Limited Meiji Holdings Co. Ltd. Lindt & Sprungli AG Arcor S.A.I.C. The Topps Company Inc. Katjes Fassin GmbH Ezaki Glico Co., Ltd. Spangler Candy Company Orion Corporation Yildiz Holding A.S. Roshen Confectionery Corporation

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support