Recent reports indicate a rapid growth trajectory for the functional confectionery market. However, addressing this market sector does not come without its challenges, as Suzanne Callander finds out.
The confectionery ingredients market continues to grow steadily and is estimated to achieve a Compound Annual Growth Rate (CAGR) of 4.6% between 2024 and 2033, according to figures from Future Markets Insights. In parallel, demand for functional foods is rising, fuelled by changing lifestyles, growing health consciousness and a desire for nutritious alternatives. In line with this trend, ‘better for you’ sweets are surging in popularity, with the global functional confectionery market expected to reach US$ 3.98 billion by 2031, according to the Functional Confectionery Market Size, Share, Growth, Forecast and Outlook (2024-2031) report from Data Intelligence.
So, this market segment offers opportunities for confectionery manufacturers. However, success will depend on how well confectioners can unpick key challenges – namely striking the elusive balance between health and indulgence. Although consumers are becoming more conscious about their food choices, they are not willing for this pursuit of health to come at the cost of taste and texture.
“Reformulations that incorporate health-promoting ingredients, be that prebiotic fibres or energy-boosting botanicals, must closely mimic or even enhance the eating experience if it is to be accepted,” warns Neus Arenas, Customer Market Leader Confectionery and Bakery & Snacks Europe at Roquette. “However, the incorporation of functional ingredients can often bring with it significant technical challenges. This is where close collaboration with ingredients suppliers and robust R&D proves critical.”
Neus highlights another key challenge – labelling. “Confectionery is still seen as a ‘pleasure’ category, so leveraging too many health claims or leaning too heavily on communicating formulation changes could shatter this illusion. As a result, the products risk being perceived as less ‘pleasant’ and more ‘medicinal’. Again, it’s all about getting the balance right. One way to go is subtlety, favouring silent formula enhancements, such as a switch to recognisable ingredients, or discrete positive claims that focus on more consumer-friendly messaging.”
When it comes to the most popular functional ingredients, Neus pointed out that Vitamin C is most widely used, thanks to the global recognition for its immunity benefits, closely followed by vitamins D and B. Both pre- and probiotics are also finding favour, as consumers become more aware of the impact of the gut microbiota on overall heath and the effect of biotics on alleviating digestive discomfort and bloating.
Pro- and pre-biotics
Probiotics are live micro-organisms, including bacteria, which have a beneficial effect on health when they are consumed in adequate amounts. As probiotics pass through the gut, they help discourage the growth of bad bacteria and support the growth of good bacteria already there. They can interact directly with both immune and gut cells, helping to strengthen the gut barrier, which plays an important role in allowing nutrients and water pass into the body while keeping toxins and bacteria out.
Prebiotics, however, are not actually bacteria but act as a food that the good bacteria in the gut. Most often prebiotics are specific types of fibre which pass undigested to the lower gut, where they stimulate the growth or activity of good bacteria.
While most prebiotics are a type of soluble fibre, not all fibres are prebiotics. The key criteria for a prebiotic is that it can be used by the good gut bacteria and proven to confer a health benefit. Some types of fibre such as insoluble fibres found in bran, wholegrain cereals and vegetables are important for gut health because they help keep waste moving along the gut but are not really used by bacteria and therefore not considered to be prebiotics.
While different fibres provide different benefits, scientists agree that increasing overall fibre in the diet from many sources is beneficial.
“Stimulants, such as caffeine or herbal extracts, now also commonly feature in NPD confectionery launches, due to their fatigue-fighting properties,” continues Neus. “For emerging functional ingredients, like adaptogens, proof and acceptance of their restorative properties and stress-reducing benefits will help them to thrive in this category.”
Making a good point, Neus argued that it shouldn’t just be about what you put into a formulation to make it healthier – it’s also about what you can take out. Vegan confectionery, for example, is quickly taking root and gaining ground. As more consumers adopt plant-based diets, their appetite for alternative ingredients in confectionery is expected to continue to flourish.
“The sugar-free confectionery market is also on an upwards trajectory. Indeed, the global sugar-free confectionery market has been calculated at US$ 2.5 billion in 2024 and is expected to expand at a CAGR of 5.4% from 2024 to 2034, according to recent figures from FactMR. This points to a growing awareness of the dangers of excessive sugar consumption, with sugar-free confectionery increasingly being viewed as a way of satisfying consumer craving for sweet treats without the harmful effects. When combined with health benefits – such as is the case with sugar-free vitamin gummies – consumers can enjoy goodness, without the guilt,” concludes Neus.
Nutri-score solutions
Bastian Hörmann, Global Marketing Director, Sweet Goods, Dairy, Specialized Nutrition at ADM believes that, as the Nutri-Score system impacts the confectionery space, there are opportunities for confectionery manufacturers to achieve positive scores with a range of functional ingredients.
ADM/Matsutani LLC’s Fibersol, for example is a prebiotic dietary fibre that can support sugar reduction. “It helps build back integrity through structural and binding qualities that can be lost when reducing sugar in formulations. It also has high solubility, doesn’t impart off-notes, forms a glass and doesn’t crystallise, which are key characteristics for hard candies, chocolates and more,” explains Bastian.
Consumers have definitely connected the dots between gut health and overall well-being, which has pushed confectionery manufacturers to tap into functional solutions like prebiotic dietary fibre, postbiotics and spore-forming probiotics.
“Research finds that Fibersol helps promote the growth of gut microbes positively associated with digestive health,” continues Bastian. “At 3.75 grams per serving, a clinical study found Fibersol may help nourish the intestinal flora and support the intestinal tract environment. We also use Caro Up, which is a dietary fibre made from the carob fruit. This can offer a good solution for confectionery developers looking to tick boxes on both functionality and sensory appeal because it can replace cocoa, such as for the coatings on bonbons, in chocolate bars and for sauces.”
High protein content is also in demand, and with continued interest in plant-based options, plant proteins are at the forefront, according to Bastian. “Our soy and pea proteins are options that deliver on nutritional value while supporting sensory attributes. We also leverage our non-GMO lecithin to provide the emulsifying properties needed for functional confectionery, in addition to vegan versions of chocolates and cream-like fillings.”
Functional nutrition
There can be no doubt that consumer interest in functional nutrition is rising across Europe, with three-in-four consumers now placing importance on the medicinal/curative benefits in their food and beverage choices, according to HealthFocus International, Kitchen Medicine 2022.
With consumers looking to balance a nutritious diet with an intake of supplements, the European market for supplements is booming. Indeed, Innova Market Insights (2023) found that the number of new supplements launches more than tripled from 2017 to 2022.
Research undertaken by Cargill shows that out of all supplement formats, it is the functional gummies space (fortified with health ingredients such as vitamins, minerals and Omega-3) that is showing the biggest gains. “This gummy format is proving to be a convenient delivery system, which is why our applications experts have developed new gummies that demonstrate health benefits with an indulgent edge,” says Eelco van Oosterbosch – Global Marketing Manager at Cargill.
However, according to consumer research conducted on behalf of Cargill, 44% of consumers also prefer to choose a sustainable option when buying sugar confectionery products. So one of the biggest challenges confectionery manufacturers face when it comes to creating functional confectionery is ensuring that they deliver both nutritionally and sustainably.
Cargill is committed to more sustainably sourcing and supplying our ingredients while doing what’s best for people and the planet,” continues Eelco. “In line with this trend, our functional gummies have undergone a full lifecycle analysis to enable food manufacturers to fully track its carbon footprint and adequately communicate the sustainability advantages to their customers.
“Within the supplement space, Omega 3 is one of the most sought after and rapidly expanding ingredients,” adds Eelco. Omega 3’s popularity is driven by a positive association with cognition and heart health. “Even though fish has been the most common source of Omega 3, consumers are looking specifically for sustainable, plant-based options that allow them to align their proactive approach to health with their environmental values. This is leading to a shift towards plant-based sources of Omega 3, such as algae.”
Cargill has made the development of vegan and plant-based Omega 3 gummies a reality by sourcing algae DHA from Canadian-headquartered innovator, MARA to meet the needs of today’s consumers. “Our algae DHA (extracted from strain Schizochytrium, using a patented solvent-free process) offers an alternative and potent source of Omega 3,” says Eelco.
“Another example of one of our plant-based functional gummies is EpiCor postbiotic, a dried yeast fermentate, which may support immune and gut health functions, as substantiated in over a dozen published studies.”
EpiCor has an interesting discovery story, which Eelco recounts: “Nearly 25 years ago, employees at our Diamond V manufacturing facility – where we produce fermented animal feed that improves livestock health – weren’t using as much sick leave as their office-bound counterparts. Through observation and analysis, it was shown that employees exposed to the fermented product had surprisingly improved immune systems. To test the theory the company invested in clinical research. After validating its efficacy, it created a fermentate for human applications.
“After years of clinical research, EpiCor – derived from fermentation of baker’s yeast and shown to support the immune system – was born. Today this is one of our fastest-growing products and just one great example of how we’re putting innovation first to improve human health.”
Editorial contact:
Editor: Kiran Grewal kgrewal@kennedys.co.uk
