Rising Demand For Bakery And Confectionery Products To Drive Market Growth Driver: Leading Transformation in the Confectionery Ingredients Market in 2025

"What combination of drivers is leading to accelerated growth in the confectionery ingredients market?
The confectionery ingredients market is being propelled by the escalating demand for confectionery items. These goods encapsulate sweet consumables and baked items such as candies. The shift in dietary habits and swelling demand for gourmet products is triggering a surge in the production of confectionery items. Ingredients for confectioneries are essential in the creation of these products. For instance, in November 2022, the Agriculture and Agri-Food Canada, a division of the Canadian government, reported that global sales of baked products at the retail level amounted to $425.7 billion in 2022, marking an upturn from the $407.2 billion recorded in 2021. Therefore, the escalating patronage of confectionery products is expected to stimulate growth in the confectionery ingredients market.

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What is the projected compound annual growth rate (CAGR) of the confectionery ingredients market from 2025 to 2034, and what factors influence it?
In recent times, there has been substantial growth in the size of the confectionery ingredients market. The market, which was valued at $82.36 billion in 2024, is expected to reach $87.98 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 6.8%. Factors contributing to this growth during the historic period include globalized taste preferences, expansion of retail outlets, effective marketing and branding approaches, demand for new and unique products, consumer interest in varying textures, and an increase in disposable income.

In the coming years, the confectionery ingredients market is anticipated to witness robust growth. It is projected to expand to $114.66 billion in 2029, registering a compound annual growth rate (CAGR) of 6.8%. The predicted growth can be credited to various factors such as packaging innovations, a heightened focus on health and wellness, the use of less sugar and sugar substitutes, the proliferation of high-end and artisanal sectors, the global integration of flavor profiles, and the preference for clean labels. Forecast-period trends comprise innovation in product formulations, technological advancements in processing, the digitalization of marketing, as well as customization, personalization, and innovative flavor pairings.

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How are the latest trends influencing the growth of the confectionery ingredients market?
Key players in the confectionery ingredients market, such as Organic Valley, are enhancing their competitive position by introducing organic products like Organic Whole Milk Powder. This product, sourced strictly from French dairy farms and certified by Ecocert, meets high organic standards. Organic Valley, an American organic farmers' cooperative, celebrated tremendous growth in their organic dairy sales in May 2024, bolstering the overall expansion of the organic market. It's noteworthy that the U.S. organic market saw record-breaking sales of nearly $69.7 billion, displaying a growth rate of 3.4% from the prior year. Of this, organic food sales represented $63.8 billion, and organic non-food items made up $5.9 billion. This surge implies a strong consumer demand for organic products, fueled by the growing consumer inclination towards healthier options and sustainably sourced items.

What are the major segments of the confectionery ingredients market and their role in driving growth?
The confectionery ingredients market size has grown strongly in recent years. It will grow from $82.36 billion in 2024 to $87.98 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to globalization of taste, expansion of retail channels, marketing and branding strategies, demand for novelty and specialty products, consumer desire for texture varieties, rise in disposable income.

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Which regions are key players in the growth of the confectionery ingredients market?
Europe was the largest region in the confectionery ingredients market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the confectionery ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the confectionery ingredients market?
Major companies operating in the confectionery ingredients market are Cargill Incorporated, Archer Daniels Midland Company, DuPont de Nemours Inc., Kerry Group PLC, Arla Foods amba, Tate & Lyle PLC, Olam International Ltd., Barry Callebaut AG, Ingredion Incorporated, Koninklijke DSM NV, AAK AB, Döhler GmbH, Brisan Group, Tereos Starch & Sweeteners SAS, Mars Incorporated, Mondelez International Inc., The Hershey Company, Nestlé SA, Ferrero SpA, Chocoladefabriken Lindt & Sprüngli AG, Perfetti Van Melle SpA, Haribo GmbH & Co. KG, The Kraft Heinz Company, General Mills Inc., The Kellogg Company, Mars Wrigley Confectionery US LLC, Ferrara Candy Company, Jelly Belly Candy Company, FrieslandCampina Kievit BV, Symrise AG, Givaudan SA

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What Is Covered In The Confectionery Ingredients Global Market Report?

• Market Size Forecast: Examine the confectionery ingredients market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the confectionery ingredients market for a structured understanding.
• Key Players Overview: Analyze major players in the confectionery ingredients market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the confectionery ingredients market.
• Segment Contributions: Evaluate how different segments drive overall growth in the confectionery ingredients market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the confectionery ingredients market.
• Industry Challenges: Identify potential risks and obstacles affecting the confectionery ingredients market.
• Competitive Landscape: Review strategic developments in the confectionery ingredients market, including expansions, agreements, and new product launches.

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