Mondelēz confectionery and snacking future: Overview
- Mondelēz prioritises innovation to drive confectionery and snacking growth
- Consumers snack over 3.5 times daily, creating expansion opportunities
- AI accelerates product development while humans retain final decisions
- Health, indulgence and affordability demands require careful portfolio balancing
- Brand heritage, innovation and acquisitions support long-term competitive advantage
Confectionery and snacking is entering an era of unprecedented change.
Technologies are transforming innovation and new product development faster than ever before, global supply chains are being tested by disruption and volatility, and market dynamics are rapidly shifting.
But, while many in the industry are struggling to keep pace, Mondelēz International is turning change into opportunity.
Innovation drives growth
For Norberto Chaclin, EVP and chief R&D officer at Mondelēz, innovation is central to the confectionery and snacking giant’s growth strategy over the next decade.
Consumers, he says, are continuing to turn to snacks for everything from nourishment and indulgence to “culinary adventure” and moments of respite in increasingly busy lives.
Added to this, many are snacking more often, with the multinational’s 2026 State of Snacking Report finding that on average consumers snack more than 3.5 times per day.
As a result, Mondelēz sees significant opportunities to broaden its portfolio and create products tailored specifically to different activities and times of day.
But the maker of major brands including Cadbury and Toblerone isn’t only focusing on new formats.
Flavour, taste and texture will be key drivers of demand in the future, explains Chaclin.
Consequently, he sees product development as a growing source of competitive advantage.
Opportunities across markets
Emerging markets have long been viewed as a major growth engine for the global confectionery and snacking sector. But Chaclin believes developed and developing regions have potential.
In emerging markets, the focus is on increasing brand penetration and reaching new consumers. While developed markets are generating demand for trends such as mindful snacking, premium experiences and products that deliver more than simple indulgence.
Similarly, changing shopper habits and the rise of digital retail channels are creating new possibilities across the industry.
These shifts are also creating opportunities for growth beyond product innovation, with acquisitions providing another way for Mondelēz to expand its capabilities and reach new markets.
Acquisitions support innovation
Innovation may be the company’s primary growth engine, but acquisitions still have an important role to play.
Chaclin describes acquisitions as a way of complementing the existing portfolio when brands cannot naturally “stretch” into attractive growth spaces. He points to the bars category as an example, where acquisitions in the US and UK allowed Mondelēz to quickly establish scale in a growing segment.
The approach reflects a broader philosophy. New products developed internally remain central to the company’s strategy, while acquisitions are used selectively when a product is “already demonstrating success in the market”.
AI changing NPD
Technology is also becoming an increasingly important part of the innovation process.
Mondelēz is investing heavily in its digital transformation, with artificial intelligence and machine learning helping accelerate product development.
According to Chaclin, AI can evaluate flavour combinations, predict ingredient interactions and identify functional ingredients that may perform well in new products.
However, while AI can speed up development behind the scenes, Chaclin stresses that “real humans still get the final say”, with products continuing to undergo human sensory testing before reaching consumers.
Beyond AI, the innovation process itself is becoming increasingly data-driven. Companies now have access to larger volumes of consumer, retail and behavioural data than ever before, allowing them to identify emerging trends earlier and make more informed decisions about product development.
For global manufacturers like Mondelēz, combining human expertise with digital tools could become an important competitive advantage as innovation cycles continue to accelerate.
Health, indulgence and affordability
Arguably the biggest challenge facing the industry is the increasingly diverse range of consumer expectations, says Chaclin.
Many people are now looking for snacks with reduced sugar, simpler ingredient lists and added functional benefits.
At the same time, demand for indulgent treats and elevated eating experiences remains strong.
And affordability adds another layer of complexity. As household budgets remain under pressure in many markets, consumers are becoming more selective about where they spend their money.
For snacking companies, this creates a delicate balancing act – developing products that meet changing expectations around health and wellness while also delivering enjoyment, value and accessibility.
Personalisation is also expected to become an increasingly important part of this equation. As consumers seek products that align with their individual lifestyles, dietary preferences and wellness goals, manufacturers are exploring new ways to deliver more tailored snacking experiences.
While mass-market brands remain critical, the ability to cater to increasingly diverse consumer needs represents a significant opportunity for future growth.
Sustainability as a growth driver
Sustainability is also becoming increasingly intertwined with innovation and long-term business performance.
From climate change and water availability to ingredient sourcing and packaging, environmental challenges are creating new pressures across global food supply chains.
For confectionery companies in particular, rising concerns around cocoa supply and climate resilience are highlighting the need for greater investment in agricultural innovation, sourcing programmes and supply chain partnerships.
Rather than viewing sustainability solely as a compliance requirement, leading manufacturers like Mondelēz are increasingly treating it as a way of strengthening resilience, securing future ingredient supplies and meeting evolving consumer expectations.
Protecting heritage brands
While disruption is reshaping many consumer categories, Chaclin believes some of the greatest risks are faced by established brands themselves.
Legacy brands, he argues, can become vulnerable when they change too aggressively in pursuit of the latest trend. For companies with iconic products, relevance must be balanced with authenticity.
“Food is culture and strong food brands are rooted in heritage,” he says. Though that doesn’t mean standing still.
Instead, Mondelēz strives to evolve its brands carefully, ensuring innovation enhances rather than undermines the characteristics that made them successful in the first place.
The future of confectionery and snacking
Looking ahead, Chaclin expects the confectionery and snacking landscape to become increasingly personalised, digitally enabled and data-driven.
Consumers will continue seeking products that deliver indulgence, functionality and convenience, while technology will allow manufacturers to innovate faster and respond more precisely to changing preferences.
At the same time, sustainability, supply chain resilience and trusted brands are likely to become even more important sources of competitive advantage.
As these trends converge, the future of confectionery and snacking looks set to be more dynamic, personalised and innovative than ever before.
