Sugar Decorations & Inclusions Market: Key Factors behind Market’s Rapid Growth

Chicago, 2021-Nov-23 — /EPR Network/ —

Sugar decorations and inclusions, such as sprinkles, jimmies, sugar variants, pearls, dragees, or “hundreds-and-thousands,” are small and colorful pieces of confectionery used to decorate and add flavor and texture, and enhance the taste of desserts, such as brownies, cupcakes, donuts, and ice-creams. Any type of sugar decoration is, in general, termed as sprinkles. Sugar inclusions are add-ins in food formulations to enhance the taste and texture of the end product.

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MarketsandMarkets projects that the sugar decorations & inclusions market is projected to grow from USD 1. 5 billion in 2020 to USD 2.1 billion by 2025, recording a compound annual growth rate (CAGR) of 6.3% during the forecast period. The rise in consumption of confectionery and bakery products across regions and the increase in demand for value-added products are the key factors that are projected to drive the growth of the sugar decorations & inclusions market. However, the adverse side-effects of artificial additives and colors used in sugar sprinkles is a major factor inhibiting the market growth.

In terms of geographical coverage, the sugar decorations & inclusions market is segmented into five regions, namely, North America, Europe, Asia Pacific, South America, and Rest of the World (RoW). North America is projected to dominate the market during the forecast period due to the presence of various established players in the US and the presence of a large number of bakeries and restaurants in the region. The US accounted for a major share in the region in 2019. This is attributed to the high disposable income, high standard of living, and the demand for value-added products among consumers in the US.

The rise in demand for sugar decorations & inclusions from emerging markets, such as China, India, Brazil, and the Middle East, is projected to create growth opportunities for players in the sugar decorations & inclusions market.

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The natural segment is projected to grow at a faster rate during the forecast period due to the increase in health-conscious consumers, which is further projected to encourage food manufacturing companies to use natural colorants in their products.

The cakes & pastries segment is projected to dominate the sugar decorations & inclusions market during the forecast period. The demand for sugar sprinkles and caramel-based inclusions in bakery products and desserts is projected to be comparatively higher, which, in turn, is projected to drive the usage of sugar decorations and inclusions in cakes and pastries.

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