Sugar Toppings Market Report Overview
Sugar Toppings Market size in 2019 is estimated to be $ 6.16 million, growing at a CAGR of 6% during the forecast period 2020-2025. Sugar toppings are used as a topping or as an ingredient in confectioneries and bakery products in order to enhance the taste and provide fancy looks. It is made of finely grained sugar which is finely crushed and converted into powdered form. It is also enriched with ingredients such as cream cheese, butter, flavorings, and egg whites. Rising demand of confectionaries and increasing demand of ready-to-eat products are the major factors driving the growth of the market. Moreover, increasing disposable income and advancement of R&D activities further enhance the overall market demand for Sugar Toppings during the forecast period 2020-2025.
In 2019, North America dominates the Sugar Toppings Market owing to changing lifestyle and eating habits and increasing consumption of high calorie food.
Rising demand of confectionaries and increasing demand of ready-to-eat products is driving the market growth of sugar toppings.
Detailed analysis of the Strength, Weakness, and opportunities of the prominent players operating in the market will be provided in the Sugar Toppings Market report.
Increasing health consciousness and fluctuation in price of raw materials are challenging the growth of the market.
Type – Segment Analysis
Based on the Type, Sugar Toppings Market is segmented into Dry Sugar Toppings, Wet Sugar Toppings. The Dry Sugar Toppings segment is forecast to be the fastest-growing segment and is projected to grow at a CAGR of 5.2% during the forecast period 2020-2025. Dry sugar toppings are used in bakeries to make cakes and cupcakes, among other confectioneries. Moreover, increasing demand for sugar toppings in hot and cold beverages are contributing to the growth of this segment.
Channel – Segment Analysis
Based on the Channel, Sugar Toppings Market is segmented into Industrial, Grocery, Foodservice. In 2019, Industrial held the largest share in the Sugar Toppings Market. This is mainly owing to increasing consumption of bakeries that increases the production of sugar topping in industries are contributing to the growth of this segment.
Geography – Segment Analysis
North America dominated the Sugar Toppings Market share accounting for 42% of the market in 2019. This is mainly owing to changing lifestyle and eating habits and increasing consumption of high calorie food. According to Chocolate Industry in U.S., about 265.91 million people consumed chocolate and other candy in 2019 which increases the demand of Sugar Topping Market in North America. However, the Asia-Pacific region is projected to be the fastest-growing during the forecast period 2020-2025. This is owing to increasing demand for cake and cupcakes and increasing consumption of hot and cold beverages.
Drivers – Sugar Toppings Market
Rising Demand of Confectionaries
Rising demand of confectionaries and growing consumption of low sugar topping products are some factors driving the growth of Sugar Toppings Market. Moreover, growing consumption of breakfast syrups and beverage sauces is also set to increase the market growth.
Increasing Demand of Ready-to-Eat Products
Increasing consumer preference towards convenience foods & ready-to-eat products and growing consumer demand for flavor variety are some factors driving the growth of the market. Moreover, changing lifestyle and increasing demand of gifting confectionery items further contributing to the growth of Sugar Toppings Market.
Challenges – Sugar Toppings Market
Fluctuation in price of raw material such as sugar and chocolate and increasing health consciousness are challenging the growth of the market. Moreover, increasing obesity and diabetes are further restraining its market growth during the forecast period 2020-2025.
Sugar Toppings Industry Outlook
Product launches, Merger & Acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Sugar Toppings Market. Sugar Toppings top 10 companies are The J.M. Smucker Company; The Hershey Company; The Kraft Heinz Company; Baldwin Richardson Foods Co.; MONIN; W.T. Lynch Foods Limited; Regal Food Products Group Plc; The Quaker Oats Company,; Ck Products Llc; and Ghirardelli Chocolate Company.
On October 2018, Kraft Heinz has acquisition with The Hershey Company and launches Milk Chocolate and Reese’s Peanut Butter Cup dairy whipped toppings. These new topping is made from 100% real cream cow and doesn’t have any oil ingredients, artificial flavours and high-fructose corn syrup.
On August 2016, Rich Products Corporation launches new product called Café Whip which is the dairy-alternative whipped topping made with coconut milk. This is specially made of bakery cafes, coffee shops and other foodservice operations. It also contains less fat than heavy whipping cream sweetened and flavored.