South America Confectionery Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Segment Analysis

By Product Type: Chocolate Anchors Volume, Sugar Confectionery Gains Velocity

In 2024, chocolate accounted for 47.88% of the market revenue, highlighting strong consumer preferences for milk and dark tablets, seasonal gifting, and premium single-origin bars. However, sugar confectionery is projected to grow at a faster annual rate of 6.39% through 2030, compared to chocolate's 5.81%. This growth is driven by manufacturers' innovations in gummies, pastilles, and hard candies, designed to meet front-of-pack labeling requirements while offering unique experiences. Dark chocolate benefits from its perceived health advantages, with marketed cocoa percentages emphasizing antioxidant properties and reduced added sugars. Meanwhile, milk and white chocolates remain key volume drivers in mass retail, particularly during festive periods like Easter and Christmas. The resurgence of sugar confectionery is linked to reformulation efforts: hard candies now incorporate isomalt and erythritol to avoid "high sugar" warnings, while pastilles and gummies use fruit purees and natural colorants to attract parents seeking cleaner labels.

Although snack bars represent a smaller segment, they are experiencing growth as functional nutrition aligns with on-the-go convenience. Cereal and protein bars are increasingly popular in gyms and workplace vending machines. Brands such as NotCo with its NotSquares and Dr. Peanut's protein alfajor are targeting millennials, positioning confectionery as a macro-friendly snack rather than a purely indulgent treat. Energy bars, while still niche, are gaining popularity in Colombia and Chile, driven by the regions' outdoor recreation and cycling culture, which demand portable calorie options. Fruit and nut bars are positioned as premium products, with brands emphasizing whole ingredients and minimal processing to differentiate themselves from mass-market granola bars.

Note: Segment shares of all individual segments available upon report purchase

By Packaging Type: Multipacks Gain Ground as E-Commerce Reshapes Fulfillment

In 2024, single-serve formats represented 61.28% of sales, primarily driven by impulse purchases at convenience stores, kiosks, and checkout lanes. However, multipacks are anticipated to grow at an annual rate of 6.27% through 2030. This growth stems from retailers and e-commerce platforms focusing on basket size and per-unit economics. For example, a 6-pack of chocolate bars delivers a higher absolute margin compared to selling six individual units separately. Modern retail chains are responding by expanding multipack offerings to attract family shoppers who prioritize value over single-serve convenience. E-commerce logistics further enhance the appeal of multipacks, as consolidated shipments lower per-unit delivery costs. Additionally, subscription models, where consumers receive monthly assortments, are gaining traction in Brazil and Argentina. Mondelez, a major player, aims to achieve 30% digital penetration by 2026.

Single-serve packaging remains essential for on-the-go consumption and product trials. This is particularly evident in convenience stores, where 70% of purchases are unplanned and influenced by point-of-sale displays. Mars Wrigley has implemented a transaction-zone strategy, placing M and M's Minis 310-gram sharing packs near checkout counters. This strategy bridges the gap between single-serve and multipack by offering resealable formats that cater to both impulse and planned purchases. Sustainability concerns are also shaping packaging decisions. For instance, Rainforest Alliance now requires recyclable or compostable wrappers for cocoa products. In response, brands are testing paper-based laminates and biodegradable films to meet retailer requirements and consumer expectations.

By Price Tier: Premium Segment Outpaces Mass as Consumers Trade Up

In 2024, mass-market confectionery accounted for 70.23% of the volume share, driven by its affordability and extensive distribution. However, the premium segment is projected to grow at an annual rate of 7.89% through 2030. This growth is primarily attributed to middle-income urban consumers valuing origin stories, sustainable sourcing, and artisanal craftsmanship. Nestlé's acquisition of Grupo CRM, completed in 2024, has provided the Swiss multinational control over Kopenhagen's 400-store premium network. These stores report average transaction values 200-300% higher than mass retail, while Brasil Cacau's bean-to-bar strategy achieves a 40-60% price premium over standard commodity chocolate.

Premium brands are effectively leveraging single-origin cocoa, organic certifications, and limited-edition collaborations to support their higher price points. Brands such as Lindt, with its Excellence line, and Ferrero's Rocher are expanding their presence in duty-free outlets and upscale supermarkets. They are focusing on gifting occasions, where packaging appeal and brand heritage significantly influence purchasing decisions. In response, mass-market players are introducing "masstige" sub-brands that provide incremental upgrades, such as higher cocoa content or Fair Trade certification, at mid-tier prices. This approach blurs category lines and attracts consumers seeking premium experiences at more affordable prices. Additionally, private-label premium lines launched by Carrefour and Walmart in Brazil are further fragmenting the market. By offering artisanal aesthetics at prices close to mass-market levels, these private labels are pushing branded manufacturers to intensify innovation and marketing efforts to maintain their market share.

By Distribution Channel: Online Retail Accelerates as Supermarkets Hold Core Volume

In 2024, supermarkets and hypermarkets accounted for 54.71% of total sales, highlighting their significance as primary destinations for weekly grocery shopping. These outlets serve as one-stop shops, offering a wide range of products under one roof, which appeals to consumers seeking convenience and efficiency. On the other hand, online retail stores are projected to achieve a strong annual growth rate of 7.58% through 2030. This growth is driven by substantial investments in infrastructure, advancements in last-mile delivery systems, and a noticeable shift in consumer purchasing behaviors toward digital platforms. Mondelez is actively pursuing strategies to enhance its digital penetration, aiming to capitalize on the growing e-commerce trend.

Convenience stores, while smaller in terms of sales volume, play a pivotal role in catering to impulse purchases and on-the-go consumption. This is especially true in urban areas, where many transactions are spontaneous, often influenced by eye-catching point-of-sale displays. For instance, Mars Wrigley strategically positions M and M's and Maltesers near checkout counters, tapping into the trend of last-minute additions to shopping baskets. While other distribution channels,such as independent retailers, pharmacies, and vending machines,are seeing consolidation with the rise of modern retail, they continue to hold significance in rural regions and low-income neighborhoods, where access to supermarkets is limited.

Geography Analysis

In 2024, Brazil accounted for 62.36% of the regional revenue, driven by its large population, increasing disposable incomes, and a strong confectionery culture encompassing mass-market tablets and premium artisanal brands. Nestlé's acquisition of Grupo CRM, the owner of Kopenhagen and Brasil Cacau, bolsters its premium chocolate distribution and positions the Swiss multinational to tap into the gifting market. In response to ANVISA's RDC 429/2020 regulation requiring front-of-pack warning labels for high-sugar products, manufacturers are adapting. Cargill's Genuine Zero chocolate and NotCo's NotSquares highlight the use of alternative sweeteners and functional ingredients to address regulatory requirements while appealing to health-conscious consumers.

Argentina is projected to grow at an annual rate of 7.22% through 2030, the fastest in the region, as macroeconomic stabilization and currency reforms enhance purchasing power, enabling consumers to upgrade from economy brands to mid-tier and premium options. Similar to Brazil's labeling regulations, ANMAT's Law 27,642 requires warning octagons for products exceeding sugar thresholds. This has accelerated sugar-free innovations, such as Dr. Peanut's protein alfajor, designed for gym-goers seeking indulgence without compromising their nutritional goals. To mitigate domestic volatility, Arcor, Argentina's largest confectionery producer, acquired Sayon Industrias Teal in December 2024 and a Peruvian chocolate brand earlier in the year, reflecting a strategy of geographic diversification and vertical integration. As retailers like Carrefour and Walmart introduce premium store brands with artisanal aesthetics at competitive prices, the intensifying private-label competition is pushing branded manufacturers to focus on innovation and marketing to protect their market share.

Chile, Colombia, and other South American countries collectively offer growth potential, with Chile standing out due to its strict regulatory environment and high per-capita consumption. Chile's Law 20.606, enacted in 2016 and progressively tightened, mandates front-of-pack warning labels and restricts advertising. Meanwhile, Colombia's confectionery sector benefits from domestic cocoa production and proximity to Central American supply chains. However, the sector experiences significant quarterly volatility, driven by seasonal demand peaks during Easter and Christmas.