The Asia-Pacific (APAC) confectionery sector is the second fastest growing globally that is expected to reach US$54.1bn in 2024, growing at a value compound annual growth rate (CAGR) of 3.5% during 2019-2024. Rising disposable income and health consciousness among the consumers are spurring the demand for premium confectionery products in the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in the Asia-Pacific Confectionery Sector’, reveals that the sugar confectionery category led the sector in value terms while chocolate is projected to register highest value CAGR of 5.6% during 2019-2024.
New Zealand, Indonesia, Vietnam and Thailand emerged as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social and technological assessment of 26 major economies in the APAC region.
The report states that Indonesia was the largest market in the confectionery sector in the region, in both value and volume terms in 2019, and is forecast to register the highest value and volume growth during 2019-2024.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “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.”
Among the various categories, chocolate category is anticipated to witness growth in consumption share among all high potential countries. Gum category is anticipated to witness decline in consumption share in across all high potential countries, during 2019-2024. However, the sugar confectionery is likely to see rise in consumption share across Vietnam and Thailand and decline in New Zealand and Indonesia.
Mars, Mondelez International, Inc 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. 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 & wellness are the top trends that get along very well with the APAC confectionery sector.
Ms. Agarwal concludes: “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.”