Caramel Market is set to register a CAGR of 5.3% and a market value of $3,650 million in 2020 over the forecast period of 2021-2026. Caramel is a type of candy that can be mixed with cream and other ingredients to make caramel sauce or soft caramel candy. It is obtained by heating sugar at 340 degrees Fahrenheit which is also called caramelization. Caramel puddings and caramel toppings are mostly consumed by the population owing to their delicious taste. Caramel contains a glazing agent that helps to prevent water loss from a surface. Caramel is a kind of confectionery product that is used as flavorings in desserts and fillings in various types of confectionery products. Caramel is also known as a binding agent for several types of candies such as caramel corn, etc. Caramel is a rich and very sweet taste that is easily found at most major grocery stores. The demand for confectionery products increases among the population which escalates the growth of the Caramel Market. Moreover, the rising development in the food and beverage sector is driving the growth of the Caramel Market. Furthermore, research and development activities related to product development increase and growing investment among manufacturers for developing various confectionery sectors also enhance the overall market demand for Caramel Market for the period 2021-2026.
Caramel Segment Analysis – By Function
The Caramel Market based on Function can be further distributed into Flavors, Colors, Toppings, Fillings, and Others. The Colors segment is the major segment generating revenue in 2020. Caramel color is used for coloring foods which helps to change the structure and texture that creates attraction among consumers to adopt coloring food. So, the use of caramel color increases in various beverages as it helps to provide various colors which increase the variety in beverages, therefore, enlarging the growth in Caramel Market. The Flavors segment is estimated to register the fastest CAGR of 5.9% for the period 2021-2026. Caramel is mostly used to provide flavors in bakery and confectionery products. This flavor helps to enhance the taste of products which is rising the use of caramel in the confectionery and bakery industry and further propels the growth of the Caramel Market.
Caramel Segment Analysis – By Application
The Caramel Market based on Application can be further segmented into Bakery and Confectionery, Dairy and Frozen Desserts, Beverages, Snacks, and Others. The Bakery and Confectionery segment registered for the highest Caramel Market share in 2020. This is owing to the rising consumption of cakes, desserts, and various bakery products. Caramel is used extensively in bakery and confectionery products as it helps in enhancing the taste, post covid the bakery products sales has also increased by 5% which will likely push the caramel Market. The Beverages segment is forecasted to register the fastest CAGR of 6.1% over 2021-2026. Rising innovation in a variety of beverages increases the use of caramel to provide an exotic look and flavor. Moreover, a variety of restaurants, foodservice sectors are providing beverages with caramel that attracts consumers to adopt the beverages. This factor tends to increase the sales of beverages which propels the growth of the Caramel Market.
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Caramel Segment Analysis – By Geography
North America dominated the Caramel Market with a major share of 40% in 2020. This is owing to soaring advancements in technology that improve the development of the food and beverage sector. Moreover, the rising consumption of confectionery products, convenience foods increases the demand for caramel. This factor enlarges the growth in Caramel Market. In the U.S., chocolate consumption rates among adults increased by 7% in 2020 which increases the demand for caramel and thus boosts the market growth. However, Asia Pacific is projected to be the fastest-growing market during the forecast period 2021-2026 owing to changing eating patterns and lifestyle increases the consumption of caramel flavors products. In India, the chocolate industry is growing rapidly and the sales of confectionery products increased by 64% which further enlarges the growth in Caramel Market.
Caramel Market Drivers
The demand for confectionery products increases among the population is likely to escalate the growth of the Caramel Market
The demand for confectionery products increases owing to their wide availability in a variety of flavors which enhance the demand of the caramel market. Moreover, kids are consuming more confectionery products owing to their sweet taste. This factor is encouraging manufacturers to develop a variety of confectionery products with the help of caramel to enhance taste which increases the sales of confectionery. According to National Confectionery Association, the sales of confectionery products increased at a rate of 74.7% in 2021 that further is driving the demand of the Caramel Market over the period 2021-2026.
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Caramel Market Challenges
The increasing price of caramel is acting as a hurdle for the Caramel Market
The factors that are set to affect the growth of the market are the increasing price of caramel. Recently, the price of caramel increased at a rate of 30% owing to the rising price of raw materials. Ingredients such as sugar, sweetened condensed milk, corn syrup, oil, and calcium carbonate are primary materials in manufacturing Caramel. Post covid all the listed ingredients price have increased significantly, which is likely to impact the final production and pricing of Caramel products which is set to challenge the growth of the market.
Caramel Landscape
Product launches, acquisitions, collaboration, joint ventures, and geographical expansions are key strategies adopted by players in the Caramel Market. Caramel top 10 companies include:
Kerry Group
Cargill
Ghirardelli
Bakels Worldwide
Nigay SAS
Metarom Group
Martin Braun KG
Puratos Group
Barry Callebaut AG
Goteborgsfood Budapest Ltd.
Acquisitions/Development
In 2020, Ghirardelli launched new White Chocolate Caramel SQUARES which is available at $4.49 for a five-ounce bag. This product launch has helped the company to gain traction in the Caramel product segment.
Key Takeaways
In 2020, North America dominated the Carmel Market. This is owing to soaring advancements in technology that improve the development of the food and beverage sector. Moreover, the rising consumption of confectionery products, convenience foods increases the demand for caramel. This factor is enlarging the growth in Caramel Market.
The demand for confectionery products increases among the population which escalates the growth of the Caramel Market. Moreover, the rising development in the food and beverage sector is driving the growth of the Caramel Market.
The prominent manufacturers operating in the market will be provided with a detailed analysis of Strengths, Weaknesses, and Opportunities in the Caramel Market report.
Related report:
Caramel Chocolate Market
https://www.industryarc.com/Research/Caramel-Chocolate-Market-Research-504574
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