The Australian candy market is undergoing significant transformation, as it continues to be driven by the ever-growing demand for indulgent treats and sweet snacks . Valued at AUD 2.18 billion in 2024 , the market is projected to grow at a compound annual growth rate (CAGR) of 3.80% between 2025 and 2034, potentially reaching AUD 3.17 billion by 2034 . This growth is being fueled by factors such as increasing consumer preference for sweets, the rise of premium , sugar-free , and organic candy options, and the expanding demand for innovative flavors and textures.

In this comprehensive article, we'll explore the dynamics of the Australian candy market, from key drivers of growth to emerging trends and the evolving consumer preferences that are reshaping the industry.

1. Overview of the Australian Candy Market

The Australian candy market encompasses a wide variety of confectionery products, ranging from traditional chocolate bars and gummies to mints, licorice, and novelty candies. The market is diverse, catering to various consumer segments, including children, adults, and health-conscious individuals.

Key product categories in the Australian candy market include:

• Chocolate-based candies
• Sugar-free candy
• Gummies and jelly-based candies
• Mints and breath fresheners
• Licorice and nougat
• Premium and artisanal candies

With an increase in consumer spending on snack foods, candy is enjoying consistent popularity, both as a standalone treat and as a component of snack packs or gift baskets. As the demand for diverse candy options grows, the market is also becoming more dynamic with the introduction of innovative and health-conscious alternatives to traditional sweets.

1.1 Market Size and Growth Projections

• 2024 Market Size: AUD 2.18 billion
• Projected Market Size by 2034: AUD 3.17 billion
• Compound Annual Growth Rate (CAGR): 3.80%

The candy market in Australia is expected to continue its upward trajectory over the next decade as demand for indulgent snacks and healthy alternatives continues to rise.

2. Key Drivers of Growth in the Australian Candy Market

The Australian candy market’s growth can be attributed to several key factors, including evolving consumer preferences, a growing demand for health-conscious options, and innovation within the confectionery sector.

2.1 Rising Consumer Preference for Sweets and Snacks

There has been an increase in the popularity of indulgent snacks and treats across various age groups. Candy is not only consumed as a special treat but is now also a regular snack option for many consumers in Australia. The strong association of candy with comfort, enjoyment, and celebrations has contributed to a growing consumption of these products.

• Occasions driving sales: Holidays, special events, and festivals—such as Easter, Christmas, and Halloween—significantly boost candy sales, with consumers purchasing larger quantities for personal consumption or gifting purposes.

2.2 Health-Conscious Shifts Toward Premium and Sugar-Free Candies

As Australian consumers become more health-conscious, they are increasingly looking for alternatives that cater to their desire to indulge without sacrificing their dietary preferences. There is a marked shift toward premium, sugar-free, and organic candy options that cater to those who are mindful of sugar intake or who prefer more natural, wholesome ingredients.

• Sugar-free candies: With concerns over sugar consumption and its potential health risks, demand for sugar-free and low-sugar options is growing. Products like sugar-free chocolate, gummies, and mints are gaining traction as healthier alternatives to traditional candies.
• Organic candies: Organic candy options are increasingly popular as more consumers turn toward products that contain fewer artificial ingredients, preservatives, and additives. Certified organic and fair-trade candies are particularly favored by those who are environmentally conscious and want to support sustainable practices.

Consumers are now seeking out candies that can meet their cravings without compromising their health goals, a trend that is likely to shape the market for years to come.

2.3 Innovative Flavors and Textures

Candy manufacturers are pushing the boundaries of flavor innovation and offering new and exciting flavor combinations. Unusual or exotic flavors—such as matcha, tropical fruit infusions, and savory sweet mixes—are attracting adventurous consumers who seek novelty and variety in their candy choices.

• Gourmet candies: High-end, gourmet candies are on the rise, driven by consumer demand for artisanal and premium products. These often feature sophisticated flavors like sea salt caramel, dark chocolate with chili, or even coconut lime.
• Textural innovation: The introduction of new textures, such as crunchy, chewy, and spongy, is also popular, as consumers crave variety in how their candy experiences unfold.

Innovation in flavor and texture continues to shape the candy market, as manufacturers strive to cater to the evolving tastes of Australian consumers.

2.4 The Influence of E-Commerce and Online Shopping

With the rise of e-commerce, consumers now have easy access to a wider range of candy options from the comfort of their homes. Online retailers, specialty candy shops, and subscription services are growing in popularity, offering consumers convenience, better deals, and access to niche products.

• Candy subscription boxes: Online subscription services that deliver curated candy boxes to customers’ doorsteps are gaining traction, particularly among younger consumers who enjoy discovering new products.
• Direct-to-consumer (D2C) brands: Brands selling directly to consumers via their websites or third-party platforms like Amazon are benefiting from more personalized services and exclusive offerings.

The convenience and variety offered by e-commerce platforms continue to revolutionize the way Australians purchase candy.

2.5 Premiumization of Candy

The market is seeing a strong premiumization trend, with consumers increasingly seeking high-quality, artisanal candy that offers a richer taste and superior ingredients. The demand for luxury chocolate, handcrafted candies, and premium sweet treats is on the rise.

• Luxury chocolate: Premium chocolate brands, often featuring single-origin cocoa and sophisticated flavor profiles, are becoming more popular among consumers who view chocolate as an indulgent, high-end treat.
• Artisanal treats: Small-batch, handmade candies are appealing to consumers who prioritize authenticity, craftsmanship, and a sense of uniqueness in their snack choices.

This premiumization trend is being driven by consumer desires for more sophisticated, elevated candy experiences.

3. Emerging Trends in the Australian Candy Market

Several emerging trends are expected to shape the future of the Australian candy market. These trends reflect changing consumer preferences, technological advancements, and a greater focus on sustainability and ethical production.

3.1 Sustainability and Eco-Friendly Packaging

As consumers grow increasingly environmentally conscious, there is rising demand for eco-friendly packaging in the candy industry. Many consumers now expect candy manufacturers to offer packaging that is recyclable, biodegradable, or made from sustainable materials.

• Plastic-free candy packaging: Manufacturers are exploring alternatives to plastic packaging, opting for paper, glass, or compostable packaging to reduce their environmental impact.
• Minimalist packaging: Consumers are increasingly seeking products with minimal packaging or packaging made from post-consumer recycled materials.

Sustainability will continue to be a key consideration for candy brands looking to meet the expectations of modern consumers.

3.2 Plant-Based and Vegan Candies

With the growing popularity of plant-based and vegan diets, candy manufacturers are introducing vegan-friendly options that cater to this demand. These products are made without animal-based ingredients, such as gelatin, honey, or dairy, making them suitable for a larger consumer base, including vegans and individuals with dietary restrictions.

• Vegan gummies and chocolates: Products like vegan gummies, chocolates, and marshmallows are expected to grow in popularity as consumers embrace plant-based sweets.

3.3 Focus on Functional Candies

The candy industry is seeing a growing trend toward functional sweets —candies that offer health benefits beyond simple indulgence. These may include candies that promote digestive health, immunity, or relaxation.

• Probiotic candies : Candies infused with probiotics that support gut health are gaining popularity.
• CBD-infused candies : CBD (cannabidiol) -infused candies, offering potential relaxation and anti-inflammatory benefits, are also entering the market.

These functional products provide an added appeal for health-conscious consumers seeking more than just taste from their sweet treats.

4. Challenges in the Australian Candy Market

While the candy market in Australia is growing, several challenges need to be addressed:

4.1 Health Concerns and Sugar Regulation

As consumers become more health-conscious, the growing concern over sugar consumption may lead to stricter regulations and a shift toward low-sugar and sugar-free candy options. Candy manufacturers will need to balance consumer demand for sweet products with the increasing push for healthier alternatives.

4.2 Market Competition

The Australian candy market is highly competitive, with both local and international players vying for consumer attention. To succeed, brands will need to differentiate themselves by offering unique products, high-quality ingredients, and appealing packaging.

4.3 Supply Chain Disruptions

Global supply chain disruptions, including shortages of raw materials like cocoa and sugar, may lead to increased production costs and potential shortages of popular candy products.