The sugar decorations inclusions market is projected to grow from USD 1.5 billion in 2020 to USD 2.1 billion by 2025, recording a compound annual growth rate (CAGR) of 6.3% during the forecast period. The major factors driving the growth of the sugar decorations inclusions market include the rise in the consumption of bakery products, such as cakes pastries, the increasing demand for value-added and textured products among consumers, and the growth of economies that enable high acceptance of these products.
The Asia Pacific region is projected to be the fastest-growing market for sugar decorations inclusions during the forecast period. The region is projected to witness a high demand for sugar sprinkles due to the increasing consumption of bakery products by individuals with high disposable income in the middle-class population across the region. Furthermore, busier lifestyles have led to a surge in demand for convenience food products. These factors are projected to create growth opportunities for sugar decorations inclusions companies in countries, such as India, China, Japan, and Australia. Emerging economies such as China and India are projected to significantly contribute to the market growth.
Key players in the global sugar decorations inclusions market include Dr. Oetker (Germany), Kerrry Inc. (Ireland), Barry Callebaut (Switzerland), The Kraft Heinz Company (US), Pecan Deluxe Candy Company (US), Signature Brands LLC (US), and Hanns G. Werner GmBH + Co.KG (Germany). These players have broad industry coverage and high operational and financial strength.
On the basis of end user, the foodservice industry segment is projected to hold the largest market share due to the increasing number of restaurants, cafes, and hotels across regions. The growing consumption of confectioneries and desserts in foodservice outlets and a high preference for flavored, textured, and appealing products by consumers is projected to contribute to the growth of this segment.
Sugar decorations and inclusions are widely used in the bakery industry. They are used for cake decoration supplies and as add-ins for bakery products, such as cakes and pastries. The major use of sugar sprinkles and sugar inclusions in cakes pastries is projected to drive the growth of this segment during the forecast period.
By colorant, the natural segment is projected to be the fastest-growing segment. The changing preferences and rising awareness about the overall health of individuals have led to an increase in the number of people opting for natural colorants over the synthetic ones. The increasing use of plant-extracts will also drive the demand for natural colorants in sugar decorations and inclusions. The trend of using clean-label will further encourage the use of natural colors in the sugar decorations inclusions market.