South America Confectionery Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

South America Confectionery Market Analysis

The South America Confectionery Market size is estimated at 13.41 billion USD in 2025, and is expected to reach 18 billion USD by 2030, growing at a CAGR of 6.07% during the forecast period (2025-2030).

The South American confectionery market is experiencing a significant shift driven by evolving consumer wellness preferences and lifestyle changes. Modern consumers are increasingly seeking products that align with their health and wellness goals while still satisfying their indulgence cravings. This trend is particularly evident among younger demographics, with recent studies showing that 39% of Brazilian consumers aged 16-34 use snacking as a stress-relief mechanism, while 32% of consumers aged 35 and above view snacks as anxiety management tools. The industry has responded by developing products with cleaner labels, reduced sugar content, and functional confectionery benefits, leading to a surge in better-for-you confectionery options.

The distribution landscape is undergoing a dramatic transformation as retailers adapt to changing shopping behaviors. Convenience stores have emerged as the dominant retail channel, with major players like Jumbo, Metro, Carrefour, Makro, D1, and Super Inter expanding their presence across the region. The supermarket and hypermarket sector has evolved to offer premium confectionery product selections and enhanced shopping experiences, capitalizing on their ability to provide extensive product variety and competitive pricing. These modern retail formats are increasingly incorporating digital technologies and innovative merchandising strategies to enhance the consumer shopping experience.

Product innovation and premiumization have become key focus areas for manufacturers responding to sophisticated consumer preferences. The trend toward personalized nutrition is gaining momentum, with a remarkable 81% of consumers in 2022 expressing a preference for snacks tailored to their specific health needs. Manufacturers are investing in research and development to create innovative formulations that incorporate functional ingredients, natural sweeteners, and novel flavor combinations. Premium confectionery and artisanal confectionery products are gaining traction, particularly in urban markets where consumers are willing to pay more for unique, high-quality offerings.

Digital transformation is revolutionizing the confectionery retail landscape, supported by high internet penetration rates across the region. Notable examples include Argentina and Brazil, which achieved 99% internet penetration as of July 2023. E-commerce platforms are enhancing their user interfaces with sophisticated product filtering systems, personalized recommendations, and convenient delivery options. Major confectionery brands are investing in digital marketing strategies and direct-to-consumer channels, while traditional retailers are developing omnichannel capabilities to provide seamless shopping experiences. The integration of digital payment solutions and mobile shopping apps is further accelerating the sector's digital evolution.

South America Confectionery Market Trends

Strong spending on advertising along with the introduction of healthy variants like clean label, natural, and organic chocolates support the market growth

• Brazil remains the prominent confectionery consumer in South America. In 2022, 75% of the Brazilian population consumed chocolate, and 35% of Brazilian consumers preferred chocolate over any other food or drink.
• Creative Advertisement campaigns and packaging are the most prominent factors influencing the impulse buying of confectionery in the region. Sustainability is an increasingly important factor for consumers when it comes to snack packaging and ingredients.
• Consumers in South America are becoming more interested in premium confectionary items. In Brazil, as of 2023, 76% of consumers are willing to pay more for high-quality/premium snacks, including organic chocolates and vegan chocolates. Economic factors are a significant attribute influencing chocolate buying behaviors among consumers in Brazil.
• The rising consumer inclination toward low-sugar or low-calorie snack food is estimated to create lucrative opportunities for healthy variants of confectionery during the forecast period. In 2021, ‘Zero sugar’ (46%) and ‘light’ (55%) were the most common sugar claims in sugar-free and reduced-sugar food products, respectively, in Brazil.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• The use of naturally produced color with unique color emulsion technology is expected to propel the market

Segment Analysis: Confections

Sugar Confectionery Segment in South American Confectionery Market

Sugar confectionery dominates the South American confectionery market, holding approximately 52% market share in 2024. The segment's prominence is primarily driven by the high consumption of pastilles, gummy candy, and jellies, which collectively account for nearly 15% of volume sales. The availability of gummies and jellies in various fruit flavors, such as strawberry, lemon, orange, and watermelon, significantly influences their consumption among teenagers. Key brands have strategically positioned their products by offering gummies in diverse shapes, such as peach rings, worms, and bears, particularly appealing to children. The segment's growth is further supported by the rising demand for functional confectioneries, particularly pastilles, which are widely used for soothing sore throats and other therapeutic purposes.

Snack Bar Segment in South American Confectionery Market

The snack bar segment is projected to experience remarkable growth in the South American confectionery market, with an estimated CAGR of approximately 11% during 2024-2029. This growth trajectory is primarily driven by evolving consumer preferences toward healthier snacking alternatives and increasing awareness of nutritional benefits. The segment's expansion is particularly notable as consumers increasingly seek snack options that align with their health and wellness goals. Market players are responding to this trend by introducing innovative products with clean-label ingredients, reduced sugar content, and enhanced nutritional profiles. The segment's growth is further supported by the rising popularity of protein bars among health-conscious consumers and athletes, with manufacturers focusing on developing products that combine taste with functional benefits.

Remaining Segments in Confections

The chocolate and gums segments continue to play vital roles in shaping the South American confectionery market landscape. The chocolate segment maintains its strong presence through innovative product launches and premium offerings, particularly in dark chocolate variants that appeal to health-conscious consumers. Meanwhile, the gums segment has established its position by catering to various consumer preferences through sugar-free options and innovative flavors. Both segments benefit from strong distribution networks and strategic marketing initiatives that help maintain their market presence and consumer appeal across the region.

Segment Analysis: Distribution Channel

Convenience Store Segment in South American Confectionery Market

Convenience stores represent the dominant distribution channel in South America's confectionery market, holding approximately 38% market share in 2024. The segment's prominence is driven by the broader reach and easy access to private-label confectionery brands, which influences consumer preference over other retail channels. These stores are strategically located in city centers of small-to-medium size towns and are now flourishing in major cities, with many situated within gas stations before expanding to more accessible locations. Major convenience store chains like Onii Autonomous operate around 770 points of sale across 19 states and 148 cities in Brazil, while Disco operates more than 500 convenience stores in Argentina, demonstrating the extensive network coverage that supports the segment's market leadership.

Online Retail Store Segment in South American Confectionery Market

The online retail segment is experiencing rapid growth in the South American confectionery market, projected to expand at approximately 7% CAGR from 2024 to 2029. This growth trajectory is primarily fueled by the increasing internet penetration across the region and evolving consumer shopping preferences. Online stores are gaining popularity by offering a comprehensive selection of confectionery products from both private labels and mainstream brands, complemented by attractive benefits such as instant discounts and cashback offers through various payment methods. The segment's growth is further supported by the convenience of store-to-door delivery, on-demand ordering, and click-and-collect services, making it an increasingly attractive option for modern consumers.

Remaining Segments in Distribution Channel

The supermarket/hypermarket and other distribution channels continue to play vital roles in the South American confectionery market. Supermarkets and hypermarkets serve as crucial retail points, offering extensive product assortments and shelf space that enables consumers to compare products effectively. The development of these modern retail channels has made it feasible for consumers to access high-quality confectionery products. Meanwhile, the "Others" category, which includes specialty stores, kiosks, warehouse clubs, drug stores/pharmacies, vending machines, and forecourt retailers, provides diverse purchasing options catering to specific consumer needs and preferences across different locations and occasions.

South America Confectionery Market Geography Segment Analysis

Confectionery Market in Brazil

Brazil dominates the South American confectionery landscape as the region's powerhouse, commanding approximately 65% of the confectionery market value in 2024. The country's market leadership is driven by its robust chocolate segment, which accounts for over half of the confectionery consumption. The nation's position as the world's fifth-largest chocolate producer and consumer further cements its market dominance. Brazilian consumers demonstrate a strong preference for milk and white chocolates, with innovative product launches and growing demand for organic and vegan variants stimulating market growth. The market is characterized by evolving consumer preferences, particularly toward healthier alternatives and premium confectionery products. Supermarkets and hypermarkets serve as the primary distribution channels, offering a wide range of both domestic and international confectionery brands. The country's confectionery sector benefits from its well-established cocoa production infrastructure and processing capabilities, supporting local manufacturing and product innovation.

Confectionery Market in Argentina

Argentina emerges as the most dynamic market in South America, projected to achieve a remarkable growth rate of approximately 10% during 2024-2029. The country's confectionery market is characterized by its unique consumption patterns, where snacking occurs throughout the day alongside regular meals. The market demonstrates strong innovation in product development, particularly in sugar-free and health-conscious offerings. Argentine consumers show a growing preference for premium confectionery products, especially in the chocolate and sugar confectionery segments. The country's retail landscape is evolving with the expansion of modern retail formats and e-commerce platforms, providing improved access to a wider variety of confectionery products. Local manufacturers are increasingly focusing on clean-label products and sustainable packaging solutions to meet changing consumer preferences. The market also benefits from the country's strong tradition of social gatherings and celebrations, where confectionery products play a significant role.

Confectionery Market in Chile

Chile's confectionery market showcases sophisticated consumer preferences and a strong inclination toward premium confectionery products. The country's robust retail infrastructure and high consumer purchasing power contribute to the steady growth of the confectionery sector. Chilean consumers demonstrate increasing awareness of health and wellness, driving demand for sugar-free and functional confectionery products. The market benefits from strong distribution networks and modern retail formats, ensuring widespread product availability. Local manufacturers are actively investing in product innovation, particularly in the chocolate and sugar confectionery segments. The country's stable economic environment and growing middle-class population continue to support market expansion. Digital transformation in retail and the rise of e-commerce platforms are creating new opportunities for confectionery brands to reach consumers through multiple channels.

Confectionery Market in Peru

Peru's confectionery market exhibits strong growth potential, driven by increasing urbanization and rising disposable incomes. The country's rich cultural heritage influences confectionery preferences, with a particular emphasis on products incorporating local flavors and ingredients. Peruvian consumers show growing interest in premium and artisanal confectionery products, especially in urban areas. The market benefits from ongoing retail modernization and the expansion of organized retail chains across major cities. Local manufacturers are increasingly focusing on product innovation and quality improvements to meet evolving consumer expectations. The country's young population and growing middle class represent significant opportunities for confectionery brands. Digital marketing and social media platforms play an increasingly important role in shaping consumer preferences and purchasing decisions.

Confectionery Market in Other Countries

The confectionery markets in other South American countries, including Colombia, Venezuela, Ecuador, Uruguay, Paraguay, and Bolivia, each demonstrate unique characteristics and growth opportunities. These markets are characterized by varying levels of economic development and consumer preferences, with some showing strong potential for premium products while others focus on value-oriented offerings. The retail landscape in these countries continues to evolve, with traditional trade channels coexisting with modern retail formats. Local tastes and cultural preferences significantly influence product development and marketing strategies. These markets share common trends such as increasing health consciousness and growing demand for innovative products, though the pace of adoption varies by country. The expansion of distribution networks and improvements in retail infrastructure are gradually enhancing market accessibility and product availability across these regions.