Cocoa-free sugar confectionery market in Southern Asia

Earlier Report Observations

Between 2018 and 2020, production of cocoa-free sugar confectionery in Southern Asia increased from 263.7 thousand tons to 404.3 thousand tons, while the market volume expanded from 194.1 thousand tons to 312.2 thousand tons. This growth was primarily driven by a shift in consumer preferences toward healthier options, including sugar-free and functional candies, and the emergence of new product segments like vitamin-infused and herbal extract-containing hard-boiled confections. Young consumers' interest in novel formats and flavors further encouraged manufacturers to innovate and expand their portfolios.

After a contraction in 2021, when production dipped to 368.7 thousand tons and market volume fell to 266.4 thousand tons, the market recovered strongly in 2022 and 2023. The rebound was significantly influenced by soaring global cocoa prices due to supply shortages, which made cocoa-free alternatives more attractive and cost-competitive. Concurrently, sustained demand for better-for-you products led manufacturers to introduce more sugar-free, gluten-free, and functional confectionery items, aligning with clean-label trends.

By 2023, production reached 441.3 thousand tons and market volume hit 339.5 thousand tons, supported by record-high cocoa prices and the continued expansion of health-oriented segments. The industry also adapted to evolving packaging requirements with a focus on sustainability, while government draft proposals to modernize sugar sector regulations indicated potential future influences on production dynamics.

Production cocoa-free sugar confectionery in Southern Asia

In kind, 2017-2020, K t

Top producers of cocoa-free sugar confectionery, 2017-2020

World map of production of cocoa-free sugar confectionery, 2017-2020

Southern Asia's production of cocoa-free sugar confectionery grew for the second year in a row. In 2020, the region produced 404.3 thousand tons, representing a significant 25.9% increase from 2019. Looking at the period from 2017 to 2020, production rose by 35.9%, which translates to an average annual growth rate of 10.8%. The lowest production level was in 2018 at 263.7 thousand tons, when output fell by 11.4%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports cocoa-free sugar confectionery from Southern Asia

Exports in kind, K t

Following two years of growth, Southern Asia's exports of cocoa-free sugar confectionery declined. In 2020, export volume reached 103.9 thousand tons, down 8.3% from the previous year. From 2017 to 2020, exports increased by 32% overall, with a compound annual growth rate of 9.7%. The peak was in 2019 at 113.3 thousand tons, when exports surged by 34.0%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

Between 2017 and 2020, the export partner structure remained fragmented. Iraq accounted for 32.3% of exports in kind, Azerbaijan for 2.7%, and Turkmenistan for 1.8%. Together, these three countries made up just 36.8% of total flows, with no single nation holding a dominant share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, M $ US

In 2020, Southern Asia exported 231.5 million US dollars worth of cocoa-free sugar confectionery, a slight increase of 1.4% from 2019. Over the 2017-2020 period, however, exports in value terms decreased by 23.3%, with an average annual decline of 8.5%. The lowest value was in 2019 at 228.2 million US dollars, when exports dropped by 27.1%. The highest was in 2018 at 313.2 million US dollars, marking a 3.8% increase.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, the export partner landscape in value terms was broad. Iraq represented 32.0% of exports in value, Azerbaijan 2.7%, and Turkmenistan 1.6%. Combined, these three countries contributed only 36.3% of total flows, leaving a substantial 63.7% spread across numerous other nations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports cocoa-free sugar confectionery to Southern Asia

Imports in kind, K t

After two years of decline, cocoa-free sugar confectionery imports into Southern Asia rebounded. In 2020, imports reached 11.9 thousand tons, up 14.3% from 2019. However, over the 2017-2020 span, imports fell by 69.1%, equivalent to an average annual decrease of 32.4%. The lowest volume was in 2019 at 10.4 thousand tons, following a sharp 61.1% drop in 2018.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

During 2017-2020, imports in kind were distributed across a wide range of partner countries. Malaysia accounted for 11.2% of imports in kind, China for 7.1%, and Turkey for 5.0%. Together, these three sources made up just 23.3% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, M $ US

The import market showed an unstable trend over this period. The lowest value was in 2019 at 34.6 million US dollars, when imports declined by 21.2%. In 2020, imports surged to 106.8 million US dollars, a 208.5% increase from the previous year, creating a 3.1-fold gap between the low in 2019 and the high in 2020.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, imports in value terms were not heavily concentrated. China accounted for 8.0% of imports in value, Turkey for 5.6%, and the United Arab Emirates for 4.0%. Together, these three countries captured only 17.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020