Business Growth in the World Confectionery Market (Edexcel A Level Business): Revision Note

206.97

• Very large market already, so growth is steady rather than explosive

213.74

• Growth continues even with cost pressures

278.36

• Long-term growth is expected to continue

• Europe accounts for a very large share of global confectionery sales by value

• Growth across the region is typically slow and steady because

  • Most European consumers already buy confectionery frequently

  • Population growth is low in many European countries

  • Markets such as the UK, Germany and France are highly competitive and saturated

• Growth in Europe is therefore driven mainly by:

  • Price increases

  • Premiumisation

  • Product innovation rather than higher sales volumes

• Europe offers low risk but limited growth potential, which suits established brands but provides fewer opportunities for rapid expansion

• North America, particularly the United States, is another large and mature confectionery market

• Growth in this region is:

  • Slightly faster than Europe in some years

  • Still relatively modest compared to emerging markets

• Key factors influencing growth include:

  • Strong demand for chocolate and snack products

  • Premium and sharing formats support sales value growth

  • Health concerns and sugar reduction pressures limit volume growth

• For multinational firms, North America provides stable revenues but limited long-term growth

• Latin America is often described as a medium-to-high growth region for confectionery

• Growth in this region is driven by:

  • A relatively young population

  • Strong cultural acceptance of sweet snacks

  • Increasing availability of branded products through modern retail

• However, growth can be uneven due to:

  • Economic instability in some countries

  • High inflation and currency volatility

• This makes Latin America an attractive but higher-risk growth market for global businesses

• Asia-Pacific is widely seen as the fastest-growing region in the global confectionery market

• Growth is supported by several structural factors:

  • Rising incomes and expanding middle classes in countries such as China and India

  • Rapid urbanisation, leading to greater demand for packaged snacks

  • Growth of modern retail formats, such as supermarkets and convenience stores

  • Expansion of e-commerce and mobile shopping

• Although growth rates vary widely between countries, the region offers significant long-term growth potential, making it a key focus for multinational investment

• The Middle East and Africa represent a smaller share of global confectionery sales, but they are increasingly important for future growth.

• Growth is supported by:

  • Rapid population growth in many African countries

  • Urbanisation and expansion of retail infrastructure

  • Growing demand for affordable treats

• However, growth is limited by:

  • Lower average incomes

  • Political and economic instability in some regions

• As a result, this region offers long-term potential, but growth is slower and less predictable.

2023

87.39

• Large, established category with strong everyday demand

2031 (forecast)

120.15

• Faster growth than many confectionery estimates