Jellies & Gummies Market Size, Share & Trends Analysis Report By Flavor (Cherry, Berries), By Distribution Channel (Store Based, Non-store Based), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global jellies & gummies market size to be valued at USD 17.7 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 3.5% during the forecast period. The market growth is attributed to growing vegan population, booming candy industry, rising awareness regarding the side effects of chocolate consumption, and increasing consumer spending. Jellies and gummies have been gaining an increasing traction among the consumers on account of their frequent purchases and growing consumption of candies over chocolate. Factors impacting the purchase decision of consumers include unique flavors, textures, candies design, shape, packaging, and sugar content. Snacking, personal rewards on-the-go, occasions, and holidays are the major reasons for the consumption of jellies and gummies. Candies are mostly popular among kids and they are the major target consumers for the candy makers.

Additionally, accessibility of low-priced non-chocolate confectionary products by different brands is anticipated to drive the global market. Moreover, presence of preservatives and gelling agents in jellies and gummies makes them more ideal and fit for consumption for a longer time period, which is attracting the consumers towards jellies and gummies than chocolate confectionaries.

Furthermore, increasing demand for sugar-free jellies and gummies is a growth opportunity for the new entrants. Customers’ shifting preferences from sugar jellies and gummies to sugar-free jellies and gummies have been driving the manufacturers to introduce jellies and gummies with less sugar content. Jellies and gummies are more popular in the age group <17 years due to their organic and chewy nature. Jellies and gummies come in different shapes such as fruits, living creatures, wheels, and bottles, which keep the children engaging.

Considering the largest and growing consumer group, manufactures are coming up with innovative packaging and marketing strategies, which distinguish products by their wrappings like the 3D wrapping, having a QR code on the wrapper for an online game, and contest to engage buyers. Growing demand for jellies and gummies in sugar confectioneries globally is attributed to the ease of handling and supply of the candies. Unlike chocolates, jellies and gummies don’t need to be stored in a refrigerated environment, thereby increasing its demand from rural areas of the developing countries.

The world’s top candy manufacturers: Mars, Ferrero, Nestle, and Lindt came up with a five-year target in 2017 to keep half of their confectioneries containing 200 or fewer calories range. They are also focusing on printing calories in front of packs for 90% of their confectionery products by the year 2022. These companies have witnessed significant growth in the low-calorie confectionery segment than the conventional confectionery makers.

Jellies & Gummies Market Trends

Factors such as increase in the vegan population at a global level and the consumer expenditure on jellies, candies, and other confectionery goods are driving the growth of jellies and gummies market. Candies are highly popular among children, and they are the primary target consumers for candy distributors.  Unique design, form, packaging, tastes, textures, and sugar content are all factors that lure the customers to buy a candy product. The main causes for the consumption of gummies and jellies are snacking, personal incentives, holidays, and occasions.

However, healthcare concerns associated with excessive sugar and alcohol use are obstacle to the growth of the market. Concerns for overconsumption of these items for their taste does more damage than good in the children. In addition, the ever-changing nature of technology is a key obstacle for manufacturing organizations since the technical challenges to incorporate new production operations and processes invites the additional costs.

Leading manufacturers in the jellies and gummies industry are using the confectionery industry's growth prospects to augment the sales among health-conscious global consumers, the market leaders are introducing bite-size portions of low-fat sweets. The candy producers are extensively investing in researching sugar and artificial sweetener substitutes that are developing as a popular trend. The incremental growth parameters and current candy industry trends are estimated to produce profitable chances for companies in the coming years.

Distribution Channel Insights

By distribution channel, the jellies & gummies market is segmented into store based and non-store based. Store based distribution channel accounted for the largest share of more than 85.0% in 2018. The largest consumers of jellies and gummies belong to the age group <17 as access to the local stores is more feasible for them over online purchase. Moreover, developed countries have high density of grocery stores, where the products are easily available as a part of the marketing strategy. Increasing shelf space for jellies and gummies owing to the preservatives and gelling agents, increased life span of the product, and no storage restriction are the major factors driving the brick and mortar stores. Increasing number of organized retailing outlets like hypermarkets, supermarkets, convenience food product-based retailing outlets, and food specialist stores in developing economies is expected to boost the segment growth.

Non-store based distribution channel is the fastest growing segment, expanding at a CAGR of 3.7% over the forecast period. Work-life dynamics, increasing congestion, growing need for convenience, and increasing demand for regional candies are driving the segment. Global players are offering a wide range of jellies and gummies in their portfolio, including shapes such as fruits, living creatures, wheels, and bottles. These products are offered as both sugar and sugar free in order to fulfill growing consumer demand from all age groups. Discounts offered on products are increasing the inclination of the consumers towards online purchasing. Non-store based distribution channel witness high demand during festive session as consumers offer jellies and candies as a gift.

Flavor Insights

By flavor, the market is segmented as grapefruit, cherry, peach, berries, apple, and others. Berries accounted for the largest share of 27.3% in 2018. Consumption of berries has increased owing to growing health consciousness among consumers. Health benefits associated with berries include high antioxidant levels, high fiber content, helps fight inflammation, good for skin, and great taste. Among berries, strawberry is the most consumed, followed by blueberries, blackberries, and raspberries.

Flavor of the candies is driving the consumers’ preferences for jellies and gummies. Jellies and gummies are prepared from exotic fruits, vegetables, liqueur, and other sources, which is attracting a large number of consumers. Moreover, a high amount of vitamins, proteins, and fiber makes it a good source of energy, which, in turn, boosts the product consumption among consumers. Thus, demand for jellies and gummies is increasing in the food industry.

Cherry is expected to expand at the fastest CAGR of 3.8% over the forecast period. This growth is attributed to increasing product modifications in terms of designs, styles, and looks. Cherry is expected to witness significant growth in the forecast period owing to the intensity of the flavor. Cherry is mixed with other fruits in order to enhance the flavor intensity. Cherries are used as a catalyst in different fruits to increase the texture, flavor intensity, and sourness, thereby enhancing the consumer experience.

Due to increasing number of vegan consumers in the world, leading manufacturers in the market are replacing animal collagen with fruit-based proteins and gelling agents in jellies and gummies. With the increasing demand for vegetarian jellies and gummies, use of fruit based ingredients is likely to expected to witness a surge in the upcoming years.

Regional Insights

North America emerged as the largest market, accounting for a share of 34.2% in 2018. In North America, the U.S. alone accounted for more than 80.0% share of the overall revenue in 2018. This scenario is attributed to growing demand for jellies and gummies and increasing shelf space in stores as compared to other confectioneries. Growing inclination of the millennials towards these products is driving the market. Many households in the U.S. consider it an affordable and healthy treat. American consumers are purchasing seasonal flavor jellies and gummies. California is responsible for over 10% of all the establishments in the U.S.

Europe is the fastest growing region, expanding at a CAGR of 3.9% owing to growing consumption among consumers, along with new product launches such as sugar free jellies and gummies and pick and mix candies by companies including Haribo, Mars, and Cloetta. Pick and mix candy is a new trend in the region, which is further supporting the market growth. It is gaining popularity in the Nordic countries, whereas packaged candy holds a stronger position in Central European countries.

Key Companies & Market Share Insights

Some of the key players operating in the global market are Haribo; Cloetta; Ferrara Candy; Nestlé; Mondelez International, Inc. The market players are offering bite-size pieces of low-fat candies to improve sales among health-conscious consumers across the globe. Increasing focus on health among consumers not only fostered a paradigm shift in the ingredients, but also in the packaging size. Key players have started adopting new packaging strategies with packs such as calorie packs or flexible packs. The small size of candies, along with reduced calories, is gaining traction among consumers.

Recent Developments

• In Feb 2022, Amway Corp. India introduced nutrition supplements in stylish, attractive, convenient, and simple formats such as flavorful candies and mouth-dissolving jelly strips under its flagship brand Nutrilite

• In May 2022, Jelly Drops, a candy flavor got introduced in the candy market that helps people stay hydrated, and has launched in the United States. Jelly Drops are produced with 95% water with additional electrolytes, and are sugar-free. It is making huge strides in the elderly population those with Alzheimer's

Jellies & Gummies Market Report Scope

Global Jellies & Gummies Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global jellies and gummies market report on the basis of flavor, distribution channel, and region:

• Flavor Outlook (Revenue, USD Million, 2015 - 2025)

  • Grapefruit

  • Cherry

  • Peach

  • Berries

  • Apple

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Store Based

  • Non-store Based

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • UAE