As consumer preferences shift toward higher-quality products, traditional foods are increasingly being imbued with health attributes, and candies are also beginning to evolve in a healthier direction. At present, the entire candy industry is striving to find new breakthroughs through innovations in areas such as functionality, vegetarian nutrition, and reduced sugar content—this trend has become a key driver of innovation in the candy industry.

Functional sugar

In the confectionery category, functionality represents a promising avenue for development. Although functional candies currently hold a relatively small share of the market, their health benefits still constitute an important and increasingly significant growth opportunity.
According to data from the China Business Industry Research Institute, the domestic market for functional candies has shown significant growth, and the functional sugar market is expected to surpass 8.6 billion yuan in 2022. According to NBJ data, global sales of functional candies doubled in just four years—from 2014 to 2018.
Among functional candies, gummies are particularly popular. According to consumption data from Tmall, in 2020, functional gummies became the fastest-growing dosage form of health supplements among younger consumer groups such as those born in the 1990s and Generation Z. Currently, the market offers a variety of gummy products, including gummies fortified with vitamins and minerals, DHA gummies, yeast-zinc gummies, probiotic gummies, melatonin gummies, and collagen gummies.
The launch of functional candies represents an extension of traditional candy brands into the premium product category, reflecting consumers’ demand for high-end, multi-layered candy products.

Sugar-free candy

As people’s demand for health continues to grow, the “low-sugar” and “sugar-free” trend has taken hold, prompting consumers to place greater emphasis on candy products—not only for their nutritional value and health benefits, but also for lower sugar content.
Against the backdrop of sugar reduction becoming a global trend, the daily demand for traditional confectionery products has been gradually declining. According to the “In-depth Market Research and Investment Strategy Recommendations Report on the Confectionery Industry 2019-2023,” in 2017, China’s confectionery production reached 3.31 million tons, a decrease of 6.0% from the 3.52 million tons produced in 2016. In 2018, China’s confectionery production further declined to 2.88 million tons, with a year-on-year drop of 13.0%, marking an even sharper decline.
To this end, many companies have launched sugar-free lollipops, such as Xufuji Dr. Bear Sugar-Free Lollipops, Three Squirrels Little Deer Lanlan Sugar-Free Lollipops, and Tang Cube Sugar-Free Lollipops. The development of sugar-free candies is certainly worth looking forward to.

Vegetarian candy

The plant-based trend is another significant consumer trend in the confectionery market. Data shows that from 2016 to 2020, vegetarian-concept confectionery products posted a compound annual growth rate of 17%, while plant-based confectionery products saw their compound annual growth rate more than double last year.
Candy manufacturers are phasing out ingredients such as dairy products, gelatin, and carmine to meet the growing demand for plant-based products, which are not only perceived as healthier but also more ethical and sustainable. For example, the Canadian candy brand Yumy Bear has launched low-sugar vegan gummies made with plant-based ingredients instead of gelatin.

In recent years, as consumer health concerns have become increasingly diverse, numerous candy manufacturers have made the development of new products that meet these demands their top priority. The continuous stream of innovative products has injected fresh vitality into the candy market. Riding the “health” bandwagon, the candy industry is steadily moving forward.