Industry research
Scope
US
Companies
119
Table of contents
What does the confectionery market landscape look like in the US?
The US confectionery market is highly consolidated, wherein Mars, The Hershey Company, Ferrero Group (LU), Mondelez International and Lindt & Sprüngli Group (CH) held ~66% of the market share in 2022. These large generalists dominate the market due to extensive brand recognition, vast distribution networks, continuous product innovation and strong marketing investments that maintain consumer loyalty and shelf dominance. Additionally, these large firms continue to consolidate and expand their presence through M&A to broaden and diversify product portfolios, capture shifting consumer preferences and expand geographical presence (e.g. The Hershey Company’s acquisition of LesserEvil expanded its portfolio of organic and better-for-you products). Alongside these giants, niche and mid-sized players differentiate themselves through experiential formats, niche products and targeted collaborations. For example, Spangler Candy Company provides experiential retail environments that blend candy shopping with entertainment at its stores, while Astor Chocolate specializes in premium gourmet Belgian chocolate bars. Furthermore, incumbents continue to innovate their products to attract health-conscious consumers. Harken Sweets serves as an example, producing vegan chocolate bars and candies made without added sugar.
What is the level of investor activity in the US's confectionery industry?
Investor-led interest has been moderate, with ~35% of identified assets backed by financial sponsors (as of May 2025). Deterring factors for investors include (i) prolonged raw material price volatility (e.g. sugar and cocoa) driven by geopolitical tensions and climate-related supply disruptions, (ii) high regulatory scrutiny on high-sugar products through reduction targets and sales restrictions that raise operational costs, as well as (iii) rising public health campaigns against ultra-processed foods. In turn, potential sponsor-led interest mainly stems from (i) growth in plant-based and vegan offerings, which expand the market and support premium pricing and margins, (ii) busier consumer lifestyles fueling demand for convenient and portable snacks, as well as (iii) the emergence of automation and Industry 4.0 technologies that enhance product consistency and reduce operational inefficiencies.
What are the key ESG considerations in the US's confectionery industry?
ESG topics in the US confectionery industry primarily revolve around environmental and social matters. Environmental concerns mainly relate to carbon emissions, energy consumption, plastic pollution, high water consumption and deforestation from cocoa production. To address this, incumbents invest in carbon reduction initiatives, develop eco-friendly packaging, implement initiatives to source cocoa from deforestation-free lands and recycle water. Social topics mainly relate to the working conditions of cocoa farmers, child labor and the rise in obesity and diet-related conditions driven by high-sugar diets. Herein, incumbents have introduced initiatives that aim to improve farmer livelihoods, reduce exploitative labor practices, reformulate products to reduce sugar and introduce better-for-you alternatives.
The US confectionery market was valued at ~$83.5bn in 2024 and is projected to reach ~$108.0bn by 2029 (+5.3% CAGR 2024-2029; GourmetPro, January 2025)
Statista (March 2025) forecasts the US chocolate confectionery market to grow from ~$24.0bn in 2025 to ~$28.6bn by 2030 (+3.6% CAGR 2025-2030)
Growth in plant-based and vegan alternatives will expand the addressable market, particularly in the chocolate and gummy segments. These products will command pricing premiums and support higher margins as health-conscious and lifestyle-driven consumers seek differentiated options (OV Confectionery, March 2025; FoodDive, October 2024; Confectionery Production, April 2024)
Busier consumer lifestyles are fueling demand for convenient, portion-controlled confectionery snacks in portable and shelf-stable formats, such as single-serve packs and resealable packaging designed for on-the-go consumption. This trend is especially pronounced among younger demographics, with ~58% of the US youth and young adult population (i.e. 13-28 year-olds) who actively seek more portable snack options (MetricsCart, April 2025; ECRM, December 2023)
The emergence and adoption of automation and Industry 4.0 technologies drive growth for manufacturers through higher production speed, lower downtime through predictive maintenance and higher product consistency with AI-based quality control systems. To illustrate, AI-driven flavor optimization has improved product innovation success rates by ~45% for confectionery manufacturers, whereas AI-powered quality control systems have reduced confectionery defects by ~30% (Gitnux, April 2025; The Little Cake Parlour, December 2024)
Prolonged volatility in raw material prices presents a significant challenge for the US confectionery market. Herein, key inputs such as sugar and cocoa face supply-side disruptions due to geopolitical tensions (e.g. political instability in West African nations like Côte d’Ivoire and Ghana) and lower agricultural yields (i.e. owing to climate change), which may compress manufacturer margins (Intelligensis, February 2025; J.P. Morgan, December 2024; CoBank, February 2024)
Stricter regulations on high-sugar products may limit growth, as policymakers push for improved public health outcomes through sugar reduction targets and sales restrictions. This is further exacerbated by US states proposing restrictions on candy purchases under the Supplemental Nutrition Assistance Program (SNAP), which leads to an increase in compliance burdens and higher operational costs across the value chain (Confectionery News, April 2025; Flavorsum, January 2025)
Rising awareness of health risks tied to ultra-processed foods places the US confectionery market under pressure. With public health campaigns targeting ultra-processed foods, the confectionery category may face reputational and regulatory pressure similar to tobacco or soda in past decades, with policies that restrict marketing or enforce stricter labeling (WSJ, April 2024; Ballard Brief, March 2024)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 119 private companies, incl. financials, ownership details and more.
A view on all 247 deals in the industry
ESG assessments with highlighted ESG outperformers
