Ingredients in Focus is a concise column from Food Dive that spotlights intriguing developments within the ingredients sector. According to a report from the Business Research Company, the confectionery ingredients market is projected to grow at a compound annual growth rate of 6.8%, increasing from $82.4 billion in 2024 to $107.3 billion by 2028. This growth during the forecast period is attributed to several factors, including innovations in packaging, an emphasis on health and wellness, reduced sugar and sugar alternatives, the expansion of premium segments, globalization of flavor profiles, and a preference for clean labels. As a result of more innovative product formulations entering the market, an increasing number of consumers are opting for baked goods and sweets. The report notes, “The rising demand for gourmet products and evolving food habits are contributing to a surge in confectionery items.”
Technological advancements in food processing, along with innovative flavors and combinations, have significantly influenced market changes. While established brands like M&Ms, Hershey, Reese’s, Twizzlers, and Jolly Rancher continue to dominate a substantial portion of the market, “better-for-you” chocolate and sweet brands are appealing to consumers who might otherwise avoid this category. Brands such as Skinnydipped, Harken Sweets, Unreal Foods, barkThins, Tru Fru, and SmartSweets have emerged with the goal of recreating beloved childhood treats using cleaner ingredients and minimal processing techniques.
Recent studies indicate that consumers are becoming increasingly aware of ingredient quality, a trend that positions smaller, health-focused, niche consumer packaged goods (CPGs) specializing in better-for-you products for growth. Key market players identified in the report include Cargill, Archer Daniels Midland, Kerry Group, and Tate & Lyle. Additionally, major companies in the confectionery ingredients market are introducing organic products, such as organic whole milk powder, to gain a competitive advantage. Milk powders are primarily utilized as an ingredient in candies, especially chocolates. Notably, the incorporation of supplements like twinlab calcium citrate caps into formulations could also cater to health-conscious consumers looking for added nutritional benefits in their favorite treats.