Confectionery Coating Market Outlook (2023 to 2033)
Global demand for confectionery coatings is expected to reach a market valuation of US$ 3.83 billion by the end of the year 2023, accelerating at a CAGR of 5.2% over the forecast period (2023 to 2033). By the end of the said forecast period, a valuation of US$ 6.36 billion is expected. The confectionery coating market is relatively niche and is experiencing utmost and rapid growth, driven by demand owing to factors such as increasing demand for products such as chocolate and candy, as well as innovation in new flavors and coatings. The market is supported by:
increasing demand for convenience and premium confectionery products.
customer needs pertaining to health and wellness
increasing technological advancements in nutrition products,
ongoing diversification in product portfolios
increasing adoption and consumption of products with Confectionery Coating
favorable government initiatives for product development
organic and clean-label foods gaining consumers’ trust
outstanding customer and employee experience
The United States of America and Canada in North America, are the major markets for Confectionery Coating owing to the higher number of population getting affected by trends in health and wellness along with a strong tradition of candy and chocolate production in the region. Furthermore, a large number of manufacturers in the sector are working on new and innovative ingredients to improve the taste of confectionary products and their popularity.
Apart from the North American region, the expansion of the retail and foodservice industry and the increasing populations in the Asia Pacific region leading to a rise in disposable income are targeted towards massive market development. Due to this, consumers are becoming increasingly interested and are willing to pay for products made with Confectionery Coating.
Key producers are working on manufacturing Confectionery Coating in order to gain a greater market share. Not just domestic players but a number of international market participants are developing and using new technology to increase commercial capacity to gain a major revenue share. Some of these companies include Barry Callebaut, Cargill, Hershey's, Mars, Lindt & Sprüngli, Ghirardelli, Ferrero, and Nestle.
These companies have a strong presence in the market and are adopting various strategies like focussing on product quality and pricing, developing Confectionery Coating based products. Alongside these factors, the key players are competing on the basis of product quality, price, brand reputation, and distribution network.
For instance, Nestle has announced a new breakthrough in the ice cream industry by introducing a Nescafe coffee coating for their ice cream series. The new line will feature real coffee in both the coating and the ice cream core, as opposed to just coffee flavors. The coating, called a "ganache", is made using Nestle's patented "soft coating" technology. This technology allows for the ganache to melt at a similar rate as the ice cream core, providing a more enjoyable experience for consumers as the sweetness and coffee flavor are released simultaneously.
Apart from the key market players, startups are also differentiating themselves by focussing on innovative new extraction methods or technologies. One example of a startup in this market is Akorn, a US-based startup, which offers natural food coatings that extend the shelf life of food. The coatings are made with natural, non-GMO corn and a small amount of other plant-based ingredients. These coatings help to reduce moisture loss, regulate oxygen exchange, prevent bacteria and mold growth, and maintain the texture, flavor, and nutrient content of fruits and vegetables.
Data Points
Key Statistics
Expected Market Value of Confectionery Coatings in 2023
US$ 3.83 billion
Projected Market Value of Confectionery Coatings in 2033
US$ 6.36 billion
Expected Growth Rate (2023 to 2033)
CAGR of 5.2%
The confectionery coating market is anticipated to show promising growth prospects in the forecasted period 2022 to 2032.
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What are the Key Drivers to the Confectionery Coating market Share
The increasing consumption of sugar confection products has increased the demand for confectionery coatings. Also, the increasing number of food industries such as bakery and confectionery is expected to generate huge demand for confectionery coating in the forecast period.
Globally, there is an increasing demand for free-from foods, particularly in urban areas. Foods that are GMO-free, gluten-free, and free from other ingredients are becoming increasingly popular. Hence various companies are launching their products by giving clean labels and free-from tags.
The new players who want to invest in the confectionery coating market could launch clean labels and free-from confectionery coatings in urban areas. Big players are launching their products with clean label tags. For instance, in 2017, Cargill incorporated launched a range of clean label coating and fillings for confection products.
Also, the demand for vegan products is growing at a rapid pace; consumers are inclined toward vegan products. Considering this, various manufacturers are launching their products targeting the vegan population. For instance, confectionery ingredient manufacturer Thew Arnott & Co Ltd. launched a confectionery coating-zein-based food glazing, especially targeting the vegan population. In addition, the health consciousness among consumers is increasing globally, which has a significant impact on the confectionery coating market. Consumers are demanding organic products. Hence, new and existing market players could focus on organic products.
Which Region holds the Highest Growth Potential in the Confectionery Coating market
The demand for confectionery coating is also increasing owing to its flavouring function in confectionery products. As chocolate has become a very common flavour in confectionery products, consumers are opting for other flavours, such as berries and yoghurt.
The flavour varieties of confectionery coatings are the key driving factor for the growth of the market. Confectionery coating manufacturers are also focusing on the new flavour varieties as a speciality offering; speciality tags are enabling manufacturers to add up the value of the confection products.
Few manufacturers are offering organic confectionery coatings, such as Capoll LLC, which is offering gum acacia-based organic confectionery coatings. Hence, other manufacturers and new entrants could focus on organic confectionery coatings as the demand for organic products is increasing widely, mostly in America and Europe.
Find your sweet spots for generating winning opportunities in this market.
How is the Competitive Landscape in the Confectionery Coating Market
Organic confectionery coatings are available from very few suppliers, such as Capoll LLC, which provides organic confectionery coatings that are gum acacia-based. Hence, other manufacturers and new entrants could focus on organic confectionery coatings as the demand for organic products is increasing widely, mostly in America and Europe.
Some of the key manufacturers and traders operating their business in the global confectionery coating market are LorAnn Oils, Soyuzsnab, Group of Companies, Capol LLC, Norevo GmbH, Blommer Chocolate Company, Cargill, Incorporated, Mantrose-Haeuser Co., Inc., Alvas Group and Bunge Loders Croklaan Sweetdreams Limited, Kauffman's Fruit Farm & Market, Barry Callebaut AG, CK Products, Clasen Quality Coatings, Inc., The Warrell Corporation, Rascal Confectionery Ltd., Thew Arnott & Co Ltd, and Fancy Flours.
The demand for confectionery coating is growing at a rapid pace; various industrialists are focusing on the confectionery coating market.
Report Scope
Report Attribute
Details
Growth rate
CAGR of 5.8% from 2022 to 2032
Base year for estimation
2021
Historical data
2015 to 2021
Forecast period
2022 to 2032
Quantitative units
Revenue in US$ million/billion and CAGR from 2022 to 2032
Report coverage
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis
Segments covered
Nature, Form, Flavour, Product Type, & Region
Regional scope
North America (USA, Canada); Latin America (Mexico, Brazil); Western Europe (Germany, UK, France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg); Eastern Europe (Poland and Russia); Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand); Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)
Country scope
USA, Canada, Mexico, Brazil, Germany, UK, France, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg Poland and Russia, China, India, Japan, ASEAN, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa
Key companies profiled
LorAnn Oils, Soyuzsnab, Group of Companies, Capol LLC, Norevo GmbH, Blommer Chocolate Company, Cargill, Incorporated, Mantrose-Haeuser Co., Inc., Alvas Group and Bunge Loders Croklaan Sweetdreams Limited, Kauffman's Fruit Farm & Market, Barry Callebaut AG, CK Products, Clasen Quality Coatings, Inc., The Warrell Corporation, Rascal Confectionery Ltd., Thew Arnott & Co Ltd, and Fancy Flours.
Customization scope
Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
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Key Segments Profiled in Confectionery Coating market
By Nature:
Organic Confectionery Coating
Conventional Confectionery Coating
By Form:
Wafers
Blocks
Others
By Flavour:
Dark Chocolate
White Chocolate
Milk Chocolate
Yoghurt
Caramel
Fudge
Citrus
Berries
Others (Spice, Nut Butter)
By Product Type:
Candies
Biscuits & Cookies
Dried Fruits & Nuts
Soft Candies
Bars
Lollipops
Canes
Toffies
Others
By Region:
North America
Latin America
Western Europe
Eastern Europe
Asia Pacific
Middle East & Africa
Frequently Asked Questions
What is the Growth Outlook for the Confectionery Coating market?
The confectionery coating market is expected to record a CAGR of 5.8% during the forecast period 2022-2032, up from US$ 3.62 Billion in the year 2022 to reach a valuation of US$ 6.36 Billion by 2032
Who are the Key Players in the Confectionery Coating market?
Key players holding substantial market share are LorAnn Oils, Soyuzsnab, Group of Companies, Capol LLC, Norevo GmbH, Blommer Chocolate Company, Cargill, Incorporated, Mantrose-Haeuser Co., Inc., Alvas Group and Bunge Loders Croklaan Sweetdreams Limited, Kauffman's Fruit Farm & Market, Barry Callebaut AG, CK Products, Clasen Quality Coatings, Inc., The Warrell Corporation, Rascal Confectionery Ltd., Thew Arnott & Co Ltd, and Fancy Flours.
What is the Future of the Confectionery Coating Market?
As per the analysis, the confectionery coating market share is likely to be US$ 6.36 Billion by 2032.
Which is the Key Driver in the Confectionery Coating Market?
The flavour varieties of confectionery coatings are the key driving factor for the growth of the confectionery coating market.
