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2022
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2023 Candy Market Trends
Author:
As consumer preferences evolve, traditional foods are increasingly embracing health‑focused attributes, and the confectionery sector is likewise shifting toward healthier formulations. At present, the industry is exploring new avenues for innovation—such as functional benefits, plant‑based nutrition, and reduced sugar—making these trends a pivotal driver of growth and differentiation in the confectionery market.
Functional sugar
In the confectionery category, functionality represents a highly promising area for innovation. Although functional candies currently hold a relatively small share of the market, their health‑related benefits remain a significant and increasingly attractive growth driver.
According to data from the China Business Industry Research Institute, the domestic market for functional candies has experienced significant growth, with the functional candy market projected to exceed RMB 8.6 billion in 2022. Meanwhile, NBJ data indicates that global sales of functional candies doubled in just four years, from 2014 to 2018.
Among functional candies, gummies are particularly popular. According to Tmall’s consumer data, in 2020, functional gummies emerged as the fastest-growing dosage form of health supplements among younger generations, including those born in the 1990s and Generation Z. Today, the market offers a variety of gummy products, such as vitamin- and mineral‑supplement gummies, DHA gummies, yeast‑zinc gummies, probiotic gummies, melatonin gummies, and collagen gummies.
The introduction of functional candies represents a strategic extension of traditional candy brands into the premium segment, reflecting consumers’ sophisticated and multifaceted demands for confectionery products.
Sugar-free candy
As people’s demand for health continues to grow, the “low-sugar” and “sugar-free” trend has taken hold, prompting consumers to seek confectionery products that are not only nutritious and healthy but also lower in sugar.
Against the backdrop of sugar reduction emerging as a global trend, the everyday demand for traditional confectionery has been steadily declining. According to the “In-Depth Market Research and Investment Strategy Recommendations Report on the Confectionery Industry (2019–2023),” China’s confectionery output in 2017 totaled 3.31 million tons, down 6.0% from 3.52 million tons in 2016. In 2018, production further contracted to 2.88 million tons, marking a year-on-year decline of 13.0%—an even sharper drop.
To this end, many companies have launched sugar-free lollipops, such as Xufuji Dr. Bear Sugar-Free Lollipops, Three Squirrels Little Deer Lanlan Sugar-Free Lollipops, and Tang Cube Sugar-Free Lollipops. The development of sugar-free confectionery is certainly worth looking forward to.
Vegetarian candy
Plant-based claims represent another significant consumer trend in the confectionery market. Data show that from 2016 to 2020, candy products marketed as vegan posted a compound annual growth rate of 17%, while those labeled as plant-based saw their CAGR more than double over the past year.
Candy manufacturers are phasing out ingredients such as dairy, gelatin, and carmine to meet growing consumer demand for plant-based products, which are seen not only as healthier but also more ethical and sustainable. For example, the Canadian candy brand Yumy Bear has launched low-sugar, vegan gummies that use plant-derived ingredients instead of gelatin.
In recent years, as consumers’ health concerns have grown increasingly diverse, many confectionery manufacturers have made the development of new products that meet these demands a top priority, with a steady stream of innovative offerings injecting fresh vitality into the candy market. Riding the “health” trend, the confectionery industry is moving forward at a measured pace.