Playing to win: How sugar confectionery can compete in an evolving snacks market

The outlook for the sugar confectionery sector is shaped by broader shifts across the global snacks industry. As growth patterns diverge across both regions and categories, and as company portfolio strategies evolve, sugar confectionery is being squeezed on multiple fronts. In this article, we consider the key developments shaping the snacks industry and highlight the opportunities and strategies sugar confectionery players can pursue to stay in the game and thrive.

Growth is shifting East and South - and across categories

While overall snack retail sales continue to rise, volume growth is subdued and uneven. Emerging markets are driving demand; mature Western markets are stagnating. At the same time, category trajectories are diverging. Savory snacks are gaining ground, chocolate is under pressure, and sugar confectionery sits in the middle - still growing, but more slowly, and with increasing fragmentation.

Sugar confectionery is losing the spotlight - but not the game

Sugar confectionery is at risk of being sidelined strategically. As global players double down on categories seen as more scalable and future-aligned - like savory snacks and better-for-you options - sugar confectionery is slipping down the priority list. This may intensify pressure on category-focused players as large companies consolidate power across the wider snacks landscape. But it also creates opportunity: In a less contested environment, focused players with strong regional traction can strengthen their position and shape how the category evolves.

Distinctive or discarded - brands must evolve to stay relevant

Indulgence and affordability remain the backbone of the category - but they're no longer enough. In a market where pressure is rising and attention is shifting elsewhere, sugar confectionery has to prove it's still worth it: by sparking excitement, delivering more with less, and showing credible intent on reformulation and health.