US Sugar Confectionery Market Research Report, 2027

Chewy candy is a household staple in the United States and is one of the most popular holiday gifts. These are growing in popularity in the US with the recent popularity in the working class segment as an on-the-go snacking trend. Furthermore, the availability of sugar-free chewy candies in a large variety of flavours has made them popular among adults. Over the years, the chewy candy has replaced other confectionary products, including chewing gum, mints, candies, and other products, which has aided the overall market growth. The chewy candy market in the US is in its maturity stage with companies majorly competing on the basis of price, brand association, distribution channel, and flavours. Fruit flavours are likely to carry appeal because of the perception that these products are healthier or less indulgent than chocolate-flavoured products. Sweet chewy candies are available in various flavours, including fruity candies, apple candies, banana candies, cotton candies, grape candies, marshmallow candies, and others. Sweet & sour chewy candies are available in various flavours, including black cherry, grapefruit, tangerine, and others. Millennials’ desire for new flavours of chewy candy has also accelerated the market growth of the US chewy candy market. Chewy candies are now synonymous with American culture and are considered a must-have snack by both kids and adults. Wrigley is a prominent company in the US with 3 brands: Starburst, Skittles, and Life Saver Gummies. The Hershey Company has 3 variants, namely, Jolly Rancher, Twizzlers, and Reese.

According to the report titled "United States (US) Sugar Confectionary Market Research Report, 2027", published by Actual Market Research, the US is the leading country with over 22% share globally. By the end of the forecast period, it is expected to cross over USD 14 billion. The chewy confectionery segment dominated the market, owing to its high popularity among kids and adults. The sales through convenience stores, supermarkets, and hypermarkets were the highest as impulse buying by the consumers. However, with the growth of e-commerce, it is expected to generate more revenue in the forecast period through this channel. Sugar-free confectionaries are expected to grow rapidly with the incidence of increasing diabetes and consumer health perspectives. Adults are the major consumers of these sugar confectionaries as they want to substitute them for chocolates. The US chewy candy market is the largest non-chocolate industry segment, and with continuous product innovation and the introduction of new flavours in the market, the US chewy candy market will grow at a positive growth rate in the forecasted period.

The United States domestic sugar production in 2019 and 2020 was some of the lowest in a decade, according to the United States Department of Agriculture (USDA), and according to American Ag Network, poor weather patterns throughout the Midwest, Louisiana, and Mexico damaged much of the annual sugar crop in 2019. In addition, NPR noted that the United States imported more sugar that year than it had since 1981 due to the shortage, which set the country up for a difficult pandemic period where sugar would be harder to come by. 

The major drivers for the growth in sales of sugar confectionaries are the rise in impulse buying by consumers from stores; holidays; special celebrations and birthdays that continue to grow; and the strong decline of mints in 2020. On the other hand, future opportunities lie in e-commerce sales, but the market faces challenges from the increasing health and wellness interests of consumers, especially since obesity is now very common among US citizens. Another major constraint is the new FDA regulations by the government on added sugar content. Along with this, the food packing norms and materials used for the same also impact the industry to a great extent. Further, the growing demand for food products with low-fat content and the rising trend of convenience foods in developing countries has encouraged market players in the sugar industry to launch innovative products to cater to consumers. The growing population and rising disposable income will drive the growth ahead. Increasing urbanisation coupled with changing consumer lifestyles further supports the growth. Significant investments by industry players in promotional activities, advertising campaigns, and social media marketing are expected to fuel the demand for sugar confectionery products during the forecast period.

Convenience stores in the United States have shown increasing interest in this industry, and they are stocking more chewy confectioneries. The major growth driver for increasing revenue was the presence of chewy candies on shelves, which attracted customers to buy them in bulk. Chewy candies are an intentional rather than impulsive purchase as they have their own personal shelf space, unlike other confectionary items which are placed near the cash registers and are mostly impulsive sales. A non-convenience store distribution channel incorporates sales of chewy candies into a supermarket, drug store, military commissary, select club, and dollar retail chain. These companies are consistently launching new products to enhance their offerings in the sugar confectionery market. With changes in lifestyles, companies are innovating and introducing new products to cater to the customers' growing needs. Leading companies are also acquiring other companies and enhancing their product offerings to improve their market reach. Acquisitions enable key players to increase their market potential in terms of geographic expansion and customer base.

With the rise of diseases and obesity-related problems, consumers in the US lookout for healthy, nutritious food products, which is why there is a shift towards healthy confectionary products. Chewy candies top the list with high acidic levels and a breakdown of tooth enamel. Also, there is a growing threat from other products like sugar-free candy, chocolates, chewing gums, mints, taffies, and other variants. Local private companies launching new varieties also pose a threat to the market. However, no matter how much consumers focus on healthy eating, there will always be a market for candy. People love candy for many reasons: the joy of indulging in an old favourite, great taste, sensational feelings and more.

COVID-19's Impact 
The sugar confectionery market is quickly reaching its pre-pandemic levels and a healthy growth rate is expected over the forecast period, driven by the economic revival in most nations. Lockdowns across the globe in 2020 and continuing restrictions in 2021 disrupted the supply chain, posing challenges for manufacturers in the sugar confectionery market. Non-chocolate confectionery had been seeing declines, but the onset of COVID-19 led to a small surge. People tend to look for familiarity and affordable pleasures in times of crisis. That offers brands the opportunity to recapture consumers they may have lost and to gain new fans through great-tasting, fun products that also have functional benefits and better-for-you claims. Intense competition, pricing issues, and shifting consumer preferences will continue to put downward pressure on vendors’ profit margins.

Considered in this report

•    Geography: United States (US)
•    Historic year: 2016
•    Base year: 2021
•    Estimated year: 2022
•    Forecast year: 2027

Aspects covered in this report

•    United States (US) Sugar Confectionery market with its value and forecast along with its segments
•    Various drivers and challenges
•    On-going trends and developments
•    Top profiled companies
•    Strategic recommendation

By product type in the report:

•    Hard boiled sweets
•    Plain Mints
•    Caramel/Taffy
•    Chewy
•    Novelty
•    Liquorice
•    Sugar-free
•    Others (Nut, coconut, marshmallows, fudges, medicated throat lozenges)

By sales channel in the report:

•    Supermarkets/ hypermarkets
•    Convenience stores
•    Pharmacy & drug stores
•    E-commerce retailers
•    Others 

By age group in the report:

•    Children (1-20 yrs)
•    Adult (21-55 yrs)
•    Geriatric (56 & above)

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 list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing 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 to start 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, chocolate 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.