Confectionery market trends: AI and plant-based innovation redefine guilt-free treats

The confectionery market is undergoing a significant transformation as consumers increasingly seek a balance between indulgence and health. Focus on sustainability, clean labels, and functional benefits is rising, as plant-based, sugar-free, and high-protein alternative demands spur innovation and reshape NPD.

Meanwhile, texture and mouthfeel continue to dominate consumer experience requirements, prompting confectioners to refine their products for better taste and consistency. AI use in recipe development and multisensory experiences are among the current trends the industry is exploring.

Between October 2020 and September 2025, global confectionery launches grew by 7%, according to Innova Market Insights data. Sweet treats remain popular, with 16% of consumers saying they look for sugar confectionery for indulgent treats.

Food Ingredients First speaks with Arla Foods Ingredients, Cargill, Ingredion, and IFF to discuss the emergence of guilt-free products that aim to make wellness and pleasure coexist in the global confectionery market.

“Like so many other categories, the confectionery space has been influenced by the remarkable demand growth for protein and the trend for healthy, guilt-free indulgence, driving interest in healthier snacking options featuring high-quality dairy and whey ingredients,” says Jeppe Sand Laursen, associate director, Functional Nutrition at Arla Foods Ingredients.

The confectionery space is seeing a growing demand for protein and guilt-free indulgence, says Laursen at Arla Foods Ingredients.In the protein bar category, consumers look for “exceptional texture,” because if the first bite isn’t great, consumers will look elsewhere, says Laursen.

“A key issue is that high protein inclusion can often lead to bars becoming dry and hard over time. Arla Foods Ingredients’ Lacprodan EasyBar is a customized whey protein solution providing exceptional protein content of up to 40%, while maintaining stable softness over shelf life.”

Plant-based formulations are also gaining momentum as a better-for-you choice, Anne Mertens-Hoyng, senior director of Chocolate Confectionery and global partner lead for NextCoa at Cargill, shares.

“Our proprietary research found most interviewed consumers associate plant-based gummies with ‘healthier’ ingredients, yet they’re clear that they won’t trade away taste or texture for those claims.”

“Multisensory” experiences

Flavor and texture are central to confectionery innovation, with consumers seeking “multisensory experiences” that justify a premium and deliver novelty.

“Today’s shoppers gravitate toward contrast and complexity — chocolates with a crisp snap followed by a melt-in-the-mouth finish, gummies with the perfect chew, and candy formats that layer soft, airy, and crunchy textures in a single bite,” says Mertens-Hoyng.

She also points to bold flavor combinations thriving, such as the surge in “swavoury crossovers” that include sweet-salty (“salty”), sweet-spicy (“swicy”), and umami-forward profiles using ingredients like miso or smoked spices.

Shoppers today crave contrast and complexity—chocolates with a crisp snap and melt and candies that blend soft, airy, and crunchy textures, says Mertens-Hoyng at Cargill.Ingredion’s proprietary texture research in 11 countries also shows that 60% of consumers enjoy multi-sensorial experiences, and 79% say texture determines overall satisfaction, Rodrigo Furquini, director of Marketing Brazil and Global Confectionery lead at the company, tells us.

“Delivering a desirable texture experience is critical when replacing cocoa in confectionery. Cocoa provides the taste and color consumers expect, but price volatility and supply challenges can impact profitability.”

“Ingredion helps manufacturers address these pressures by lowering cocoa content in their recipes while maintaining color, flavor, and texture through its portfolio of sugar-reduction solutions, starches, and texturizers.”

Tackling sugar reduction challenges

The confectionery market must balance taste and low-sugar demands amid sugar taxes and stricter regulations.

“Manufacturers are increasingly required to include ‘added sugar’ on product labels, and are also under growing pressure from consumers to reduce sugar levels in their favorite products without compromising taste and texture,” says Laursen at Arla Foods Ingredients.

Milk and dairy ingredients are coming to the fore, as their naturally occurring sugars do not have to be highlighted. “Variolac whey permeate 100% dairy ingredients can help manufacturers eliminate ‘added sugar’ from ingredient lists and enable them to use ‘no added sugar’ claims. It also helps clean up labels by reducing the number of ingredients listed on-pack,” Laursen explains.

Ingredion’s research reveals that nearly 74% of consumers in EMEA and Asia Pacific, and 61% in North America, say a reduced sugar claim is important when choosing candies and other confectionery products, says Furquini.

“Stevia sweeteners stand out as a preferred option. Among consumers in EMEA, stevia is significantly more accepted than sweeteners perceived as artificial across F&B categories,” he says.

With taste staying critical as sugar drops, Ingredion’s taste modulation solutions can enhance sweetness and baked notes in lower-sugar confectionery, says Furquini.To address the technical challenges in confectionery, manufacturers are increasingly adopting a “toolbox approach,” says Mertens-Hoyng at Cargill. Rather than relying on a single sweetener, they’re “layering polyols, high-intensity sweeteners and other ingredients to replicate sugar’s sweetness, mouthfeel and flavor-release properties.”

IFF is addressing consumers’ low‑sugar demands with its Danisco Xivia Xylitol (wood-based sweetener) and Danisco Litesse Polydextrose (prebiotic fiber) to “help reduce calories and improve nutritional profiles,” for better-for-you treats, says Claudia d’Ambelle, regional marketing manager EMEA for Food Ingredients at IFF.

However, while demand for reduced-sugar and naturally sweetened options has increased, she points out the need for greater variety.

“In the UK, 41% of consumers feel the current range of low‑ or sugar‑free sweets is too limited, highlighting an opportunity to introduce more exciting concepts using naturally sweet ingredients such as fruit,” d’Ambelle adds.

“Fruit‑based snacks with no added sugar are also gaining momentum across formats like bars, bites, and chewy pieces.”

Transforming confectionery recipes

Confectionery manufacturers are innovating continuously to meet consumer demands while also addressing real technical and marketplace challenges.

Arla Foods Ingredients’ Variolac whey permeate offers manufacturers a high-performing, versatile alternative to traditional milk solids, allowing them to optimize confectionery recipes “without compromising indulgence,” says Laursen.

Arla Foods Ingredients’ Variolac whey permeate can help substitute traditional milk solids in chocolate bars and eliminate ‘added sugar’ from ingredient lists.The ingredient can be used in chocolate bars, spreads, powder beverages, and seasonal chocolates.

Meanwhile, Cargill has expanded its European portfolio to include its EverSweet stevia sweetener — a product of its Avansya joint venture with dsm‑firmenich.

The product joins Cargill’s range of “full-, mid- and no-sugar options,” including polyols, fiber-based sweeteners and enhanced bulking agents, says Mertens-Hoyng.

IFF is tapping the demand for vegan offerings and fruit appeal in its confectionery ingredients. “IFF is highlighting its expertise in vegan confectionery systems using pectin and carrageenan to deliver indulgent gummy and chew textures while plant-based Solae Soy and Pea Proteins enable high protein claims,” notes d’Ambelle.

To maintain indulgence and functionality, Ingredion’s PureCircle flavor modifiers enhance sweetness and mask off-notes, and Kerr fruit and vegetable ingredients “help reduce sugar naturally while appealing to clean label demands,” says Furquini.

Meanwhile, the company’s Versasweet low-sugar glucose syrups offer “one-third” the sugar of traditional syrups while maintaining similar performance, while Astraea allulose provides sugar-like taste at 70% sweetness.

Regulations and AI shape confectionery’s future

In the future, IFF’s d’Ambelle expects AI and digital tools to unlock more tailored flavor and texture experiences in the confectionery market.

Sugar confectionery can more easily reformulate to non-HFSS status with soluble fibers and fruit-based ingredients, says d’Ambelle at IFF.“At IFF, AI‑driven consumer intelligence helps decode emerging preferences and predict winning combinations, while AI‑supported recipe development accelerates formulation of complex products such as sugar‑reduced or protein‑enriched confectionery,” she says.

Additionally, High Fat, Sugar, or Salt (HFSS) advertising restrictions, taking effect in Europe from January 2026, will limit promotions for high‑fat, sugar- and salt-rich products. “Responsible sourcing and eco‑ethical positioning will become essential as climate pressures affect ingredient supply chains. Younger consumers will expect transparency and environmental accountability across the value chain,” d’Ambelle adds.

For Furquini at Ingredion, a balance of indulgence, wellness, and sustainability, with layered multi-sensory texture experiences, will become more prominent in the confectionery market.

“Sugar reduction remains central, supported by clean label ingredients and the added appeal of fiber and plant protein. As cocoa costs fluctuate, reformulation will focus on reducing cocoa usage while protecting indulgent texture and taste.”