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Trade4go
Aug 27th, 2024
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The functional confectionery market is growing as consumers increasingly seek sweets with added health benefits. Functional confectionery includes products like candies, gums, chocolates, and gummies that are enhanced with vitamins, minerals, probiotics, or other beneficial ingredients to promote wellness. The global functional confectionery market was valued at USD 3.7 billion in 2023 and is forecasted to reach USD 3.96 billion in 2024, reflecting steady growth. This upward trend is expected to continue with a compound annual growth rate (CAGR) of 7.1% until 2030, when the market is projected to reach USD 5.98 billion.
Figure 1. Global Functional Confectionery Market Value
The global functional confectionery industry is rapidly growing, driven by several key market trends. Three of the most relevant trends include:
Consumers increasingly seek products that satisfy their cravings for sweets and offer functional benefits. Confectionery items like gummies, chocolates, and hard candies are infused with ingredients that promote wellness. For example, vitamins are added to boost immunity, probiotics support digestive health, and collagen helps with skin and joint care. Energy-boosting ingredients like caffeine or adaptogens are also gaining popularity, catering to consumers looking for guilt-free indulgence and contributing to their overall well-being. This shift toward health-conscious treats is strong among millennials and Gen Z consumers, who prioritize health in their daily choices.
With increasing consumer demand for transparency and healthier ingredients, brands are focusing on creating products with natural ingredients, such as plant-based sweeteners like stevia, and eliminating artificial additives. Clean label offerings clearly state that using non-genetically modified organisms (non-GMO), organic, and chemical-free ingredients is becoming a key selling point. This trend aligns with the broader movement toward healthier eating, where consumers scrutinize product labels for artificial preservatives, colors, or flavors. As a result, companies that offer clean-label functional confectionery are positioning themselves as trustworthy and health-conscious brands, capturing a growing market segment.
Sustainability is becoming a central consumer concern, influencing purchasing decisions. Companies are responding by emphasizing using sustainably sourced ingredients and eco-friendly packaging materials. Ethical sourcing, particularly in the chocolate industry, is a significant focus, with brands ensuring their cocoa comes from fair trade or sustainable farming practices. This appeals to environmentally conscious consumers and aligns with broader corporate social responsibility (CSR) initiatives. Using biodegradable or recyclable packaging further reinforces the commitment to reducing environmental impact, making these products more attractive to a growing base of eco-conscious shoppers.
Unique consumer preferences across various countries shape the functional confectionery market in Asia, each reflecting local tastes and wellness priorities.
In Japan, functional confectionery focuses heavily on beauty and anti-aging products. Collagen-infused gummies and candies that promote skin health and elasticity are highly sought after, particularly among women. Japan also emphasizes digestive health, with probiotic-enriched candies such as UHA Yakult’s probiotic gummies being widely available. The country’s regulatory framework, known as the Food for Specified Health Uses (FOSHU), ensures that these products meet stringent health standards, which boosts consumer confidence.
Figure 2. Japanese Company Functional Confectionery Example
Health-focused functional confectionery is proliferating in China, with products integrating traditional ingredients like lotus seeds and Chinese red dates. Local brands like Hsu Fu Chi offer diverse functional confectionery products, each catering to specific health needs. The Packing Jelly is infused with goji berries and chrysanthemum, promoting immunity and digestive health while providing a light and convenient snack. The Chaobii Bulk Chocolate combines indulgence with functionality, featuring ingredients like milk, nuts, and yogurt fillings that provide calcium, protein, and digestive benefits. Additionally, the Tengu Energy Bar is formulated with energy-boosting ingredients such as oats, nuts, and ginseng, making it ideal for active individuals seeking a nutritious and functional snack. Post-pandemic demand for wellness products, especially those with energy-boosting and stress-relief properties, is rising significantly.
Figure 3. Chinese Company Functional Confectionery Example
In South Korea, functional confectionery is thriving with products like KWANGDONG’s Vita 500 Gummies, which are packed with vitamin C to support immune health and overall wellness. Another notable product is Vitalbeautie’s Super Collagen Gummies, designed to enhance skin health and elasticity with added collagen. These products cater to the strong local demand for confectionery that delivers beauty and health benefits. Additionally, fiber-rich snacks are becoming famous for promoting digestive wellness, reflecting the country’s strong focus on balancing beauty and overall health in confectionery products.
Figure 4. South Korean Company Functional Confectionery Example
India is beginning to see a rising demand for functional confectionery, particularly products infused with traditional ingredients like turmeric, ashwagandha, and tulsi (holy basil). These ingredients are rooted in Ayurvedic practices, and consumers are increasingly gravitating towards confections that offer benefits like stress relief, improved digestion, and enhanced immunity. Some examples are from companies like Himalaya Herbals, which offer Koflet Cough Drops infused with licorice and honey, soothing relief for the throat and supporting respiratory health. Also, Patanjali’s Amla Candy features amla (Indian gooseberry), which is known for its high vitamin C content and antioxidant properties, aiding in immune health and digestion. Additionally, Patanjali’s Tulsi Drops are chewable candies that incorporate tulsi (holy basil), providing stress relief and immune-boosting benefits. These products reflect a growing trend toward functional confectionery that leverages traditional wellness ingredients to meet contemporary consumer needs.
Figure 5. Indian Company Functional Confectionery Example
In Southeast Asia, countries like Thailand and Indonesia are seeing growing interest in functional confectionery products that improve gut health and energy levels, aligning with busy urban lifestyles. To cater to local tastes, herbal extracts and tropical fruits like mangosteen and durian are sometimes used in these confections.
Unique consumer preferences across various countries shape the functional confectionery market in Asia, each reflecting local tastes and wellness priorities.
Functional confectionery comes in various forms; each type offers a convenient and enjoyable way to consume wellness-enhancing ingredients while appealing to diverse consumer preferences. Key types of functional confectionery and global examples include:
One of the most popular forms, gummies are often infused with vitamins, minerals, collagen, or probiotics. They cater to a broad audience, offering benefits such as immune support, digestive health, or beauty enhancement. Vitamin C and D gummies for immunity or collagen gummies for skin health are typical examples. For example, Olly offers a wide range of functional gummies, including their "Immunity Gummies" fortified with elderberry, echinacea, and vitamin C for immune support. Similarly, Vital Proteins' "Collagen Gummies" are designed to promote skin, hair, and nail health by adding collagen peptides.
Figure 6. Functional Gummies Example
Functional chocolates are enriched with ingredients like adaptogens, proteins, or cannabidiol (CBD) to offer relaxation, focus, or physical recovery. Dark chocolate infused with antioxidants or mood-enhancing elements is famous among health-conscious consumers. Chocolates like Functional Chocolate Company's "Sleepy Chocolate," infused with melatonin, magnesium, and chamomile, cater to the growing interest in functional foods. This product aims to promote relaxation and improve sleep quality. Another example is "Sexy Chocolate," which combines indulgence with functionality, featuring ingredients like maca root and ginseng that are believed to boost mood and enhance vitality. These innovations reflect a broader trend of blending pleasure with wellness benefits, appealing to consumers seeking enjoyment and health improvements from their food choices. Additionally, Kiva Confections offers "Mint Cannabis Infused Chocolate," which combines rich chocolate with THC or CBD derived from cannabis to promote relaxation and stress relief. These innovations reflect a broader trend of blending pleasure with wellness benefits, appealing to consumers who seek both enjoyment and health improvements from their food choices.
Figure 7. Functional Chocolate Example
These sweets are often fortified with herbs or vitamins and cater to consumers seeking energy boosts, mental clarity, or cold and cough relief. For example, lozenges with zinc or elderberry are designed to support immune function, while caffeine-infused hard candies help with energy. For instance, Ricola produces herbal lozenges combining Swiss alpine herbs with honey and menthol, designed to soothe sore throats and support immune health. Another example is Viter Energy Mints, caffeinated breath mints that boost energy with added B vitamins.
Figure 8. Functional Hard Candies Example
Functional gums offer quick and discreet delivery of ingredients like caffeine, vitamins, or herbal extracts. Energy-boosting or stress-relieving gums, often containing caffeine or CBD, are increasingly popular among busy professionals. NeuroGum's "Energy & Focus" gum delivers caffeine, L-theanine, and B vitamins to enhance alertness and concentration. Meanwhile, Mighty Gum offers "Immunity Gum," infused with adaptogens, vitamins, and zinc to boost the immune system while freshening breath.
Figure 9. Functional Hard Candies Example
Snack Bars are indulgent yet health-focused snacks fortified with protein, fiber, or superfoods like chia seeds or flaxseeds. Some bars are designed for post-workout recovery, while others aim to improve digestion or boost energy. RXBAR produces protein bars made with simple ingredients like egg whites, nuts, and dates, providing a protein boost for muscle recovery and energy. Similarly, GoMacro's "MacroBars" include superfoods like chia seeds and flaxseeds, delivering protein, fiber, and antioxidants.
Figure 10. Functional Snack Bars Example
Confectionery producers should focus on innovating with functional ingredients and with local preferences by developing products tailored to regional consumer demands, such as collagen-infused gummies in Japan or Ayurvedic-inspired confections in India. Expanding product ranges to include gummies, chocolates, and hard candies infused with trending ingredients like adaptogens and probiotics will help capture diverse consumer segments. Additionally, adopting clean-label formulations with natural ingredients like plant-based sweeteners and non-GMO additives will align with millennials and Gen Z's demand for transparency. Sustainability should also be a priority, particularly in sourcing fair-trade cocoa and using eco-friendly packaging, which resonates with eco-conscious consumers.
For importers, targeting high-growth regions like China and Southeast Asia, where demand for immunity-boosting and digestive health products is rising, will be essential. Building relationships with niche producers specializing in functional ingredients such as probiotics and collagen can help differentiate product portfolios. Moreover, offering customized products tailored to local market preferences, such as flavor adjustments or packaging changes, will enhance acceptance and sales in these regions.
Exporters should capitalize on the growing global health and wellness trend by offering functional confectionery that addresses critical concerns like immunity, energy, and skin care, particularly in markets like China and India. Compliance with local regulations will build consumer trust and facilitate smoother market entry. Additionally, focusing on sustainable supply chain practices, including eco-friendly packaging and shipping, will meet consumer demand for environmentally conscious products and enhance the brand reputation globally. By aligning with these key strategies, businesses can effectively navigate the growing functional confectionery market and secure a competitive edge in the industry.
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