Why premiumization is the driving force behind confectionery?
- Market for premium confectionery to reach $68 billion by 2033
- Consumers look for affordable luxury items during times of economic uncertainty and increasing costs
- Brands create exclusive seasonal flavours and formats, as well as upscale flavors.
- Brands must deliver more in terms of value, ethics and product quality to younger generations
- Chocolate bars of higher quality are preferred in smaller quantities.
In the last five years, premiumisation in the food and beverage industry has become a dominant trend. The sector where it is strongest? Confectionery.
It’s already worth more than $31bn ($26bn), but it is projected to double in value (to $68bn by 2033) thanks to a CAGR of 10.4% (market research firm M2 Square Consultancy).
M2 Square Consultancy spokesperson says that the global market for premium confectionery is experiencing a robust growth.
As the demand for confectionery grows, this is also helping to boost innovation as brands take advantage of its possibilities.
What is Premiumisation?
The premiumisation of certain products is used as a strategy to increase prices.
It can be done in several ways. For example, you could use higher-quality ingredients, such as cocoa of high quality, or add functional ingredients, such as adaptogens, to gummies. Or, change the design of the packaging so that it appears more luxurious and expensive.
Premiumisation of big brands by leading brands
- Mars, Incorporated Introduced upscale twists such as M&M’S Peanut Butter & Jelly, and Skittles POP’d frozen crunchy sweets
- Mondelez International Toblerone’s Edgy Egg With Diamond Truffles and Cadbury’s Half & Half Ultimate Egg are the perfect seasonal indulgences.
- Ferrero Nutella Peanut and Ferrero Rocher Chocolate Squares are the latest additions to its portfolio of premium products.
- Nestle Aero Double Choc brownie and Milkybar Chocolate crumble are two of the most indulgent treats you can find.
- Hershey Reese’s Oreo Cups & PB & J Big Cups blend classic with contemporary
- Lindt & Sprungli Launched Excellence Yuzu & Pink Peppercorn Bars and Lindor Pistachio Cream Truffles.
With new products coming out every day, premium brands appearing just as frequently, and a growing consumer demand, this trend is likely to continue into the year 2026.
(Image: Getty/Phoenixns) Premium confectionery can be considered a luxury. (Image: Getty/Phoenixns)
Why is premiumisation of confectionery so popular?
Attest’s Spending Trends report shows that consumers prefer to indulge in small treats rather than invest in larger purchases. Spending on a decadent dessert or chocolate bar is more important than investing in a bigger purchase.
Richard Caines is the principal analyst of UK Food and Drink Research at Mintel. He says that consumers view premium confectionery products as an affordable luxury.
It is particularly true in times of economic instability, when consumers’ focus shifts to savings.
The “less is better” mindset means that shoppers will buy less of a higher quality confectionery than they would of a larger quantity of chocolate.
Caines says that the emotional and sensory pleasure premium confectionery offers helps consumers justify their higher prices.
Some consumers can’t even afford to buy premium sweets. Some brands have decided to work on making their products more affordable for all customers, instead of just satisfying a few.
A spokesperson from Swiss confectioners Lindt & Sprungli says that “our premium chocolate is more affordable per serving than other premium indulgences.” This allows it to be enjoyed by a wide range of people while maintaining its exclusivity.
Chocolate maker ensures access to chocolate through a multichannel distribution strategy – not just in shops, but also online, wholesale, travel retail and other channels.
Hotel Chocolat, owned by Mars, says that it is committed to making high-quality chocolate available to everyone.
Teresa Peck is the head of Hotel Chocolat’s global category strategy. She says, “We understand that customers come to us with different budgets for self-treats or gifts.” It’s important that we offer a wide range of products to meet the needs of our customers, including a variety of occasions and price ranges.
Peck clarifies that the brand uses “the same ingredients, and applies the same care to every chocolate product and the entire portfolio” of the brand.
Premiumisation continues to grow because it appeals to the younger generation who are demanding more from their money.
Sonja Prokopec, Professor at the ESSEC Business School says that many younger consumers today are looking for more in brands. “Millennials, Gen Z and other younger generations have been raised in an era where digital marketing is a constant battle for attention. They are constantly bombarded with thousands of brand messages vying to get their money and attention. Younger consumers are more demanding of brands, and they vote their wallets.
It’s not all about the desire for more. According to Mintel figures, over half of consumers believe it is worth spending more for better-quality goods.
The strong positioning of confectionery as a gift is also accelerating consumption of artisanal and premium confectionery around the world.
(Image: Getty/Dmitr1ch) The trend of premiumisation is especially prominent in chocolate. (Image: Getty/Dmitr1ch)
Chocolate Premium
Chocolate is a prime example of the trend towards premiumisation.
According to Mintel, 63% of chocolate lovers would prefer a smaller amount of high-quality chocolate over a larger amount of standard chocolate.
When it comes to the most popular features of premium chocolates, high cocoa contents and distinctive flavours are at the top. Manufacturers have taken note of this trend.
Caines, Mintel’s Caines: “It feels as though the flavors have gotten more premium with time. Especially all of the dessert-like tastes.”
How will the future look for premium confectionery? (Image: Getty/Deagreez)
The premium confectionery market is here to remain
Premiumisation for confectionery brands is not just a trend. It’s also a strategy to drive growth. Premiumisation is a strategic growth engine for confectionery brands. With consumers seeking out indulgent and high-quality products, it’s an opportunity to increase portfolios, enhance brand positioning, as well as tap into other occasions, from self-care to gifting.
To meet the evolving expectations of consumers, innovation in taste, format and storytelling, along with agility in price and distribution, will be essential. Leading brands will balance exclusiveness with accessibility and indulgence while maintaining ethical sourcing.