In 2025, the global confectionery market’s revenue is projected to be worth $619.20bn, growing at an annual growth rate of 5.35% between 2025 and 2029. Health and wellness are expected to play a pivotal role in the space, with a noticeable shift in consumer demands centring around more health-conscious choices such as plant-based, gluten-free and reduced-sugar varieties.
One demographic that’s rich with potential is generation alpha (all kids currently under 14) who, depending on their age, can be targeting through their parents or as emerging consumers in their own right.
Better-for-you treats for school-aged children
US-based start-up The Functional Chocolate Company has launched the FunCho Kids range which blends dark chocolate with botanicals to address everyday health concerns.
Carefree Chocolate, for example, contains botanicals, including lemon balm, passion flower and chamomile, which are associated with promoting relaxation and a feeling of calm.
Meanwhile the Painfree SKU is designed to support ‘everyday owies, ouchies, blacks and blues’, with soothing ingredients such as bromelain, turmeric and Methylsulfonylmethane (MSM), known for their anti-inflammatory properties.
Wellness solutions kids love
Similarly, the brand’s Sleepy Chocolate for Kids is formulated with chamomile, magnesium and L-tryptophan to help children unwind and prepare for a restful night of sleep, providing an alternative to melatonin.
The FunCho Kids products range comes after the brand’s co-founder Chris Peruzzi created its first Functional Chocolate Company SKU to help his teenage children tackle everyday health realities like premenstrual syndrome (PMS), stress and anxiety.
“As our company has grown, so have our families, and so have the health realities we address,” says Nicole Smith, CEO. Recognising challenges like restless nights, school jitters and inevitable tumbles, Smith adds that its new launch is “making it easier (and sweeter!) for parents to say ‘yes’ to wellness solutions their kids will love.
Children’s health and wellness-focused confectionery is an attractive market space for brands, which can appeal to consumers by combining fun and functionality in chocolate and candy creations. Functional confectionery can also be offered in an easy-to-use, on-to-go, single-serve packaging that appeals to school-age children to provide added convenience.
A new wellness audience
“Functional confections are one of the fastest growing functional foods segments, which isn’t surprising since gummy vitamins have been increasing in popularity for decades,” says Graham Sorkin, the firm’s chief of staff. “The functional chocolate space has been growing quickly over the past several years, yet options for kids remain extremely limited.
“As parents move away from gummy supplements loaded with sugar, artificial flavourings and dyes, they are looking for alternatives that still deliver a fun, ‘treat like’ experience that is enjoyable for kids,” he says.
Formulating child-friendly functionality
The Functional Confectionery Company believes chocolate is the ideal base to enhance its formulation due to its functional and indulgent properties. “Dark chocolate is already a functional food and a Super Food due to its high flavanols, antioxidants and minerals including magnesium, zinc, iron and copper,” says Sorkin. It also acts as a carrier to improve digestion and bioavailability of the other ingredients. “Fortifying chocolate with active nutraceuticals creates an indulgent and especially effective experience.”
Functional confectionery brands and products
Chupa Chups Sugar-Free Lollipops promote their product as suitable for vegetarians and is gluten-free, dairy-free and nut-free. Its front-of-packaging also contains a label stating it includes natural colourings.
YummyEarth has developed a range of confectionery products, dubbed allergen-friendly sweets, that are free from the top nine allergens. Its range includes chocolate, lollipops, hard candy, chewy candies, gummies, sours and liquorice.
Smart Sweets has released its reduced-sugar and plant-based confectionery selection, including chewy candy, hard candy, gummies and sours.
