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Confectionery Ingredients Market to Reach US$ 120.33 Billion by 2031 at 5.2% CAGR, Driven by Premium Chocolate Demand and Clean-Label Trends | DataM Intelligence
Confectionery Ingredients Market
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Key Mergers and Acquisitions
✦ January 2026: Barry Callebaut acquired a specialty cocoa processing company to strengthen its cocoa & chocolate ingredient supply chain and expand sustainable sourcing for premium confectionery applications.
✦ December 2025: Cargill Incorporated completed a strategic acquisition of a natural sweetener and flavor innovator to enhance its portfolio of clean-label sweeteners and hydrocolloids for sugar confectionery and gum.
✦ November 2025: Kerry Group secured a licensing agreement with a plant-based emulsifier developer to integrate advanced natural emulsifiers into its confectionery ingredient lines globally.
Key Industry Developments
☑️ January 2026: Kerry Group, Barry Callebaut, and Cargill introduced new clean-label cocoa & chocolate and natural flavor premixes for premium chocolate confectionery, responding to rising demand for reduced-sugar and organic products.
☑️ December 2025: Ingredion Incorporated, Tate & Lyle Plc, and Sensient Technologies Corporation expanded production capacities for starch derivatives, hydrocolloids, and emulsifiers to support growing bakery confectionery and gum applications in Europe and North America.
☑️ November 2025: Archer Daniels Midland Company, McCormick & Company, and Koninklijke DSM N.V. strengthened partnerships with confectionery manufacturers and launched fortified flavor and malt solutions, targeting functional and indulgent categories worldwide.
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Market Segmentation Analysis
By Type: Cocoa & Chocolate holds the largest market share due to its essential role in chocolate confectionery, premium positioning, and strong consumer indulgence demand; Sweeteners follow closely for sugar confectionery and gum applications; Hydrocolloids and Emulsifiers grow rapidly for texture stabilization and mouthfeel in caramels, chewies, and coatings; Flavors and Oils & Shortenings expand steadily for taste enhancement and richness; Others include dairy ingredients, malts, and starch derivatives for diverse confectionery needs.
By Source: Natural ingredients dominate and grow fastest with consumer shift toward clean-label, plant-based, and organic options across cocoa, flavors, and hydrocolloids; Synthetic sources remain relevant for cost-effective and consistent performance in mass-market products.
By Form: Dry Form leads due to ease of handling, long shelf life, and widespread use in powdered cocoa, sweeteners, and starch derivatives; Liquid Form grows in emulsifiers, oils, and syrup-based applications requiring precise blending.
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Competitive Landscape / Key Players
✦ Kerry Group - In January 2026, expanded its natural flavor and emulsifier portfolio with new clean-label solutions for reduced-sugar chocolate and gum, while strengthening partnerships with European confectionery manufacturers for functional innovations.
✦ Barry Callebaut - Acquired a cocoa processing specialist in January 2026 to boost sustainable cocoa & chocolate supply, and launched premium couverture and powder lines in late 2025 targeting high-end chocolate confectionery brands.
✦ Cargill Incorporated - Completed acquisition of a sweetener innovator in December 2025 and introduced natural malt and oil-based solutions for bakery confectionery and caramels, focusing on cost-effective, sustainable ingredients.
✦ Ingredion Incorporated - Expanded starch derivative and hydrocolloid production in December 2025, delivering improved texture stabilization for sugar confectionery and gum in North American and European markets.
✦ Tate & Lyle Plc - Rolled out reduced-sugar sweetener and texturant innovations in late 2025, supporting clean-label trends in chocolate and gum applications across global confectionery producers.
Regional Insights
North America commands the largest market share in the global Confectionery Ingredients market, supported by high consumption of premium chocolate and sugar confectionery, strong demand for clean-label and reduced-sugar ingredients, advanced food processing infrastructure, widespread retail and foodservice channels, and presence of leading suppliers driving innovation in cocoa, sweeteners, and hydrocolloids.
Europe remains the fastest-growing region, fueled by stringent regulations favoring natural and organic ingredients, rising consumer preference for premium and functional confectionery, expanding chocolate and gum categories, strong bakery confectionery demand, and aggressive investments by global and local players in sustainable sourcing and innovation.
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