2025 Candy Market Trends

With the upgrade of consumption, traditional foods are increasingly associated with health attributes, and candies are also beginning to upgrade towards a healthier direction. Currently, the entire candy industry is trying to find new breakthroughs in creativity such as functionality, vegetarian nutrition, and reduced sugar, which has become a key part of the innovation trend in the candy industry.

Functional candy

In the category of candies, functionality is a very promising development direction. Although the market share of functional candies is currently small, their health benefits remain an undeniable point of profit growth.
According to data from the China Business Industry Research Institute, functional candies have shown significant growth in the domestic sales market, with expectations that the functional sugar market will exceed 8.6 billion yuan in 2022. According to NBJ data, global sales of functional candies doubled in just four years (2014-2018).
Among functional candies, gummy candies are particularly favored. Consumption data from Tmall shows that in 2020, functional gummy candies became one of the fastest-growing health product forms among young groups such as those born after 1990 and Generation Z. Currently, there are products on the market such as vitamin and mineral gummies, DHA gummies, yeast zinc gummies, probiotic gummies, melatonin gummies, collagen gummies, etc.
The emergence of functional candies is an extension of traditional candy brands into high-end product categories and reflects consumers' higher-level and multi-layered demands for candy products.

Sugar-free candy

As people's health needs continue to grow, the trend of 'low sugar and no sugar' has emerged. Consequently, consumers have also raised demands for candy products—not only should they be nutritious and healthy but also contain less sugar.
Against the backdrop of reduced sugar becoming a global trend, the daily demand for traditional candies has gradually decreased. The '2019-2023 Candy Industry In-depth Market Research and Investment Strategy Recommendation Report' shows that in 2017, China's candy production was 3.31 million tons, down by 6.0% from 3.52 million tons in 2016; in 2018, China's candy production dropped to 2.88 million tons with a year-on-year decline rate reaching 13.0%, further increasing its decline.
In response to this trend, many companies have launched sugar-free lollipops such as Xu Fu Ji's Dr. Bear Sugar-Free Lollipop, Three Squirrels' Little Deer Blue Sugar-Free Lollipop, and Tang Cube's Sugar-Free Lollipop. The development of sugar-free candies is worth looking forward to.

Vegan candy

'Plant-based' advocacy is another important consumer trend in the candy market. Data shows that from 2016 to 2020, vegan candy products had a compound annual growth rate (CAGR) of 17%, while plant-based candy products saw their CAGR more than double last year.
Candy manufacturers are removing ingredients like dairy products, gelatin and cochineal red to meet the growing demand for plant-based products which are not only seen as healthier but also more ethical and sustainable. For example, Canadian candy brand Yumy Bear launched low-sugar vegan gummy bears made with plant ingredients instead of gelatin.

In recent years, alongside diverse consumer health demands, many candy manufacturers view developing new products that meet consumer needs as a top priority; continuous innovation injects new vitality into the candy market. Riding on the 'health' train slowly moves forward for the candy industry.