The value of the confectionary machinery market is estimated to have been $0.4 billion in 2016 in the United States; IHS Markit forecasts it to grow with 2.9% CAGR from 2016 to 2021. A rise in health awareness and of the health benefits of consuming chocolate has supported the demand for confectionery products over the past few years.
Jellies and gums are the fastest growing sectors in the US confectionery industry, and the demand for high-value products is increasing. This market primarily deals in chocolate and sugar confectioneries.
Machinery manufacturers need to abide by various food regulations and conditions on procuring ingredients and processing them. Since these high-quality confectionery products are expensive, food regulatory organizations keep a check on manufacturers product to customers as end products with a high sugar content and artificial flavors and colors may be considered harmful.
The rising price of cocoa butter has divided opinion over the production of chocolate. Some leading manufacturers use cheaper alternatives, such as shea butter and palm oil, to partly or fully replace cocoa butter to reduce costs. However, many chocolate producers have been reluctant to use alternatives that are perceived to lack the distinct quality of cocoa butter. The challenge that chocolate producers face is to protect product quality and profitability as production costs rise faster than those of some competitors. The rising price has led to increased efforts to seek alternatives; however, many producers would argue that those that are available do not suffice. Should the price trend continue, it is expected that some producers will reluctantly begin using alternatives to cocoa butter in chocolate production to increase margins. This could result in increased investment in processing equipment for alternative ingredients, such as shea butter and palm oil.
