South America Sugar Confectionery Market Research Report, 2027

The growth of the South American sugar confectionery market demand further drives the growth of Brazil's retail sugar confectionery market. Brazil has nearly 40% market share in the South American sugar confectionery market and is expected to remain in a dominant position over the forecast period as well. This growth can be attributed to the rising food and beverage industry and an increase in the middle income group in the region. The expanding retail industry in the region further aids market growth. The confectionery market has undergone a massive change owing to dynamic consumer demands, socio-economic changes, and cultural influences. Inclination towards sugar and sweetness is a never-ending reason for the growth of the sugar confectionery market in South America. However, rising health focus and an increase in chronic diseases hamper market growth. But the sugar-free segment overcomes this hurdle. Warning labels about sugar intake drive consumers to make informed choices. The government has restricted sales in schools of any product high in sugar, sodium, calories, or saturated fats, which acts as a restraint. According to the research report, "South America Sugar Confectionery Market Research Report, 2027," by Actual Market Research, it is projected to grow at a steady CAGR of 6.84% over the forecast period ending in 2027. As sugar confectionery products are now seen as an alternative to chocolates, the local players who have already established themselves in the chocolate industry are now significantly investing in sugar confectionery production. The sugar confectionery market is segmented into product types such as hard-boiled sweets, chewy, sugar-free, novelty, plain mints, caramel/taffy, licorice, and other types. The sales channel is segmented into supermarkets and hypermarkets, convenience stores, pharmacies, e-commerce retailers, and others. Children (1-20 years), adults (21-55 years), and geriatrics (56 years and older) are the age groups. By means of product type, the South American sugar confectionery market is highly inclined towards the chewy confectionery segment, which in 2021 held 37% of the market. One of the major hurdles in the market's growth is the increasing cases of obesity and diabetes. This has made people shy away from sugar consumption and move towards low-calorie food items. In order to capture this market gap, the manufacturers have been focusing on the production of sugar-free confectionery, which in the forecasted period is to grow at a CAGR of 10.09%, considerably the highest in the segment. Much like the global trend, the convenience store segment leads the market in South America. This segment amounted to USD 0.72 billion in the year 2021. By the end of the forecasted period, the e-commerce sales channel is expected to be the fastest-growing segment with a CAGR of 10.64%. In countries like Argentina, kiosks are seen as an important channel of advertising in the sugar confectionery industry. Even with the COVID pandemic lockdown, the kiosk chains like Open 25 and 365 have partnered with PedidosYa, and Rappi benefited from a sales boost. The adult age group segment is dominating in the region and is also expected to show an incline in the market share and grow at the highest CAGR in the forecasted period. The companies have been focusing on continuous promotions through social media to keep a hold on this segment of consumers. Yet, on the other hand, the increasing health awareness about early childhood obesity is hampering the market. This is to reduce its direct impact on the market, which is to restrict the growth of the children's age group segment to 6.34% in the forecasted period. Among the studied South American countries, nearly 40% of the market share is held by Brazil, which can be attributed to the increasing middle-class population and the rise of the F&B industry in the country. Also, in recent years, the country has experienced a significant increase in the export of confectioneries. The leading companies are focusing on improving their global position by enhancing their product lines and through mergers and acquisitions. Understanding the changes in lifestyles, companies are now innovating and introducing new products to cater to the customers' growing needs. Companies Mentioned: 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 Considered in this report • Geography: South America • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Countries covered in the report: • Brazil • Argentina • Columbia • Chile Aspects Covered in the report: • South America Market Size By Value for the time period (2015-2026F) • Country Wise Market Size By Value for the time period (2015-2026F) • Market Share by Product Type (Hard Boiled Sweets, Plain Mints, Caramel/ Toffee, Chewy, Novelty, Licorice, Sugar-free, Others) By Value • Market Share by Age Group (Children(1-20 Age), Adult (20-55) & Geriatric(55 and above)) By Value • Market Share by Sales Channel (Supermarket/Hypermarket, Convenience Stores, Pharmaceutical & Drug Stores, E-commerce & Others) By Value The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to sugar confectionery industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.