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The least contributing Latin America Sugar Confectionery Market to grow with the highest CAGR 6.72%: Actual Market Research
Oct, 09
2021

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The least contributing Latin America Sugar Confectionery Market to grow with the highest CAGR 6.72%: Actual Market Research

 

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In the region, the growth of the sugar confectionery industry has been a rough patch. The industry was hampered with several hurdles like difficult economic situations and new laws affecting the sugar industry, coupled with the growing health consciousness among the people. This region contributed considerably the lowest in the global market, amounting to USD 1.36 Billion in 2015. The recent publication of Actual Market Research, titled 'Latin America Sugar Confectionery Market Outlook, 2026' is an in-depth study of the regional market along with the dynamics that is to shape the market.

Sugar confectionery is facing challenging times in Latin America, with a difficult economic situation in several countries, growing consumer health concerns, and new laws that affect sugar consumption. Companies must use innovative strategies to keep on growing in this environment, launching products that provide sensory experiences, products with portable packaging to consume anywhere and at any time, and products that offer permissible indulgence. Through the forecasted period, this is to aid the market to grow with an anticipated CAGR of 6.72%.

The companies are making their way out with the introduction of innovative variants and portable packing. Sugar confectioneries are a perfect substitute for chocolates for their size & easy to eat texture. Thus, many already established players in the chocolate industry are moving towards the sugar confectionery industry. Even with a number of innovations in the market, the market is dominated by chewy confectionery which in 2020 captured a market share of 37%. As more people are opting for healthier lifestyles, the demand for sugar-free confectionery is to increase, and thus the market is expected to be growing with a CAGR of 9.85%.

Despite the Covid pandemic, the convenience stores segment is to remain dominating in the region. In 2020 itself, this segment accounted for USD 0.68 Billion. Companies are focusing on these traditional retailers, and are also expanding their promotional activities to attract local buyers. However, with a large number of small-scale confectionery makers popping in the region, they opt for an online sales channel for their product distribution. Thus by the forecasted period, the e-commerce sales channel is to be the fastest-growing segment at a rate of 9.95%. Apart from the online channels, the region has high profitability from the street kiosks, which triggers the impulse buying instinct of the buyers.

Even though during the studied period, the Brazilian market went through considerable economic difficulties, it leads the market with nearly a share of 40%. This immense share of the country can be attributed to the rising middle-class population and the increase in export trade. With the rise in health awareness, the market faced a huge hurdle in the growth of revenue from the children age group which is expected to grow at 6.34% anticipated CAGR. This has been further hurdled by the prohibition of marketing activities of products high in sugar, sodium, or calories within the school premises. In order to gain consumer trust, many leading companies started with warning labels on their packaging and also created awareness about how to deal with the nutritional risk of sugar confectioneries.

Key players mentioned in this report are: Mars Wrigley Confectionery, div. of Mars Inc., Ferrero Group, Haribo GmbH & Co. K.G., Perfetti Van Melle, Meiji Co. Ltd., Nestle SA, Hershey Co., Lotte Confectionery Co., Ltd., Mondelez International, Lindt & Sprungli AG