Australia Confectionery Market Report and Forecast 2025-2034

According to this report, the Australia confectionery market size reached around USD 3.74 billion in 2024. Aided by shifting consumer preferences, increasing demand for premium and innovative products, and a growing emphasis on healthier alternatives, the market is projected to grow at a CAGR of 2.2% between 2025 and 2034, reaching almost USD 4.66 billion by 2034.

The Australia confectionery market growth can be attributed to a number of key factors, including changing consumer lifestyles, the growing popularity of indulgent snacks, and an increasing focus on the emotional and social aspects of eating. Confectionery products are often linked to moments of enjoyment, celebration, and self-reward, which makes them a frequent choice among consumers seeking comfort and happiness. In addition, an increasing number of confectionery brands are using creative marketing strategies, often aligning their products with contemporary trends, such as sustainability, health-consciousness, and indulgence.

The trend toward healthier eating habits has been gaining momentum in Australia in recent years, and this shift is influencing the Australia confectionery market dynamics. In response to growing concerns about sugar consumption and the increasing prevalence of health-conscious consumers, many confectionery companies are focusing on producing products with reduced sugar content, low calories, and functional ingredients.

Innovations such as sugar-free and low-glycaemic alternatives, as well as the use of natural sweeteners like stevia, are becoming increasingly popular among Australian consumers. At the same time, there is a rising demand for organic and clean-label products, as consumers seek transparency in food production and prefer products free from artificial additives and preservatives. This shift toward healthier options is driving manufacturers to diversify their offerings to meet the needs of a more health-conscious demographic.

While health-conscious products are on the rise, indulgent treats still dominate the Australia confectionery market share. Chocolate remains one of the most popular categories, with consumers consistently seeking out premium varieties that offer a more luxurious and satisfying experience. There is a growing preference for high-quality, artisanal chocolates that are crafted with superior ingredients, offering a more refined taste.

Additionally, the demand for vegan, gluten-free, and dairy-free confectionery options is on the rise, reflecting the broader global trends toward plant-based diets and inclusive eating habits. The increasing popularity of plant-based alternatives is reshaping the confectionery market, with consumers more inclined to seek out products that align with their dietary preferences and ethical values.

Another important factor shaping the Australia confectionery market dynamics is the rapid growth of online retail channels. The rise of e-commerce has revolutionised the way confectionery products are marketed and sold in Australia. With the convenience of online shopping, consumers can easily access a wide range of products, from traditional candies to niche and gourmet items, often with the option to have them delivered to their doorstep.

This shift has led to the emergence of direct-to-consumer brands, many of which are leveraging social media and influencer marketing to create brand awareness and drive consumer engagement. As the online shopping experience becomes increasingly personalised, more confectionery brands are focusing on digital platforms as an integral part of their business strategy.

While the Australia confectionery market continues to evolve, sustainability is emerging as an increasingly important trend. Environmental concerns are influencing the way both consumers and manufacturers approach confectionery production and packaging. The rise in consumer awareness about plastic waste, carbon footprints, and ethical sourcing has encouraged confectionery brands to explore sustainable packaging solutions, such as biodegradable or recyclable materials, as well as ethical sourcing practices for ingredients like cocoa and sugar. Manufacturers are increasingly focused on reducing waste throughout the production process, using fewer resources, and adopting more sustainable practices in order to appeal to environmentally-conscious consumers.

In addition, the Australia confectionery market is also seeing growth in the gift and premium segments. Confectionery is often seen as a thoughtful and desirable gift, especially during holidays and special occasions. The demand for luxury and gourmet confectionery products is increasing as consumers seek high-quality treats to give as gifts or to indulge in themselves. From high-end chocolate collections to speciality candy assortments, premium confectionery products are gaining traction as consumers look for more personalised and indulgent options.

Looking ahead, the Australia confectionery market is expected to continue growing as a result of innovation, changing consumer demands, and evolving consumer preferences. The increasing focus on healthier, more sustainable products will be a key driver of growth, but indulgent and premium products will remain essential components of the market. As the industry responds to emerging trends, including plant-based diets, e-commerce, and environmental consciousness, Australian confectionery brands will need to remain agile and adaptable in order to thrive.

In conclusion, the Australia confectionery market is poised for continued growth over the coming years, supported by shifting consumer preferences, the growing demand for healthier alternatives, and innovations in product development. As the market continues to adapt to changing consumer habits and emerging trends, confectionery brands that prioritise quality, sustainability, and inclusivity will be well-positioned to meet the evolving needs of Australian consumers.

Market Segmentation

The market can be divided based on product type, age group, price point, distribution channel, and region.

Market Breakup by Product Type

• Hard-boiled Sweets
• Mints
• Gums and Jellies
• Chocolate
• Caramels and Toffees
• Medicated Confectionery
• Fine Bakery Wares
• Others

Market Breakup by Age Group

• Child
• Adult
• Geriatric

Market Breakup by Price Point

• Economy
• Mid-Range
• Luxury

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia confectionery market. Some of the major players explored in the report are as follows:

• Nestlé Australia Ltd.
• Ferrero International
• Mars, Incorporated
• Mondelez Global LLC
• Australian Sweet Co.
• Others