The U.S. confectionery market size was USD 36.4 billion in 2016 and is anticipated to gain traction over the forecast period. This can be attributed to the increasingly efforts and money invested on research & development by market players in order to innovation and rebrand their brand images.
Market players are observed introducing healthy snacks such as protein rich bars, dark chocolates with higher percentage of cocoa, and low-sugar content chocolates and chewing gums. Moreover, decreasing cocoa prices in the international market is also acting in favor of the market players.
The increasing development in demand for US candies internationally is primarily propelling demand for the market. Moreover, an accelerating growth in the number of consumers switching to healthy snacks is propelling market players to introduce innovation in their product portfolios.
Market players are constantly facing competition from the increasing healthy snacks market as the population of health-conscious consumers is growing each year. They are turning to fresh fruits, healthy snacks, diet food, and cereal bars, among other snack items. However, market players are observed introducing healthy protein bars, premium dark chocolates, and implementing cross-brand selling within the market to strengthen their market position.
The chocolate segment acquired the largest market share in the U.S. confectionery market and was valued at USD 20,608.2 million in 2016. The segment is projected to maintain its dominance over the forecast period.
Chocolate segment showcased the highest penetration, owing to the introduction of dark chocolates, organic and alcohol flavored chocolates. In addition, companies operating in the market have introduced chocolates that comprise exotic nuts and fruits. Moreover, they have introduced protein bars and low sugar content chocolate bars.
However, the gum segment is anticipated to grow with at the highest CAGR of 7.3% over the forecast period. This can be attributed to the availability of sugar-free and medicinal quality chewing gums that helps avoid cavity and bad breath. Moreover, chewing gums are also considered as a good exercise for shaping jaws and strengthening facial muscles, which acts as another reason for growing demand for them.
The hypermarkets & supermarkets segment dominated the U.S. confectionery market and is expected to reach maintain its dominance in the market in the next eight years.
The primary reason for the dominance of hypermarkets & supermarkets in the U.S. confectionery market is the higher availability of variants in such locations. These stores comprise large space and experience high footfall as compared to other stores. Hence, they possess a larger share in the distribution type segment than other retail outlets.
However, others segment comprising wholesalers, supercenters, club stores, mass merchandisers, gasoline station, and other value stores are expected to witness significant demand. This can be contributed to the changing consumer behavior and changing marketing strategies of market players.
The market is highly fragmented with the presence of a few established players holding a significant market share in the market. Prominent players in the market include The Hershey Company, Mars, Inc., Mondelez International, Inc. and Nestle SA, among others.
The top four players in the market together constitute around 50% of the total market share. As a consequence, there is a tough fight between the market players to expand or retain their existing market share.
Switching costs are quite low for both consumers as well as retailers. As a result, there exists a possibility of consumers switching to new products and cheaper private labels available in the market, especially during the times of economic downturns or slowdowns. However, product differentiation bolstered both by inherent characteristics and by strong branding enables players to maintain a hold over customers to some extent, thereby alleviating rivalry.
Attribute |
Details |
Base year for estimation |
2016 |
Actual estimates/Historical data |
2014 - 2016 |
Forecast period |
2017 - 2025 |
Market representation |
Revenue in USD Million & CAGR from 2017 to 2025 |
Country scope |
U.S. |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization. |
This report forecasts revenue growth at country level and analyze the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. confectionery market report based on types, and distribution types:
Type Outlook (Revenue, USD Million; 2014 - 2025)
Chocolate
Sugar
Gum
Distribution Type Outlook (Revenue, USD Million; 2014 - 2025)
Hypermarkets & Supermarkets
Convenience Stores
Food & Drinks Specialists
Others
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.