Guandy is a company that has been manufacturing candy for more than 30 years, according to Gerardo Araneda, general director of Grupo Guandy e Industria de Golosinas. Araneda points out that the company currently exports around 12,000 containers full of sweets, including marshmallows, gummy candies, and chocolates, to 35 different countries each year. According to Araneda, there are 10 confectionery companies in the country, all of which are involved in exports.

 Currently, confectionery exports in Guatemala account for only 1.8%, according to data provided by Daniel González, head of Economic Analysis for Central America and the Dominican Republic at Deloitte. However, Valeria Prado, Deputy Minister of Investment and Competition at Mineco, estimates that the confectionery market could grow to US$632 million by 2030. This is based on the availability of raw materials: sugar.

 Fernando Cifuentes, general manager of Atkinson Candy Company de Guatemala, S.A., explains that in the United States, sugar was a protected product for a long time, which meant that it was more expensive than on the international market. While it costs 30 cents on the international market, in the United States it costs 70 cents. “Since they protect it, it is always more expensive because when it runs out, they have to import it.” According to Cifuentes, this led many companies to seek alternatives in other countries, as in the case of Atkinson Candy Company, which decided to enter Guatemala.

 Felipe Baselga, Investment Banking Partner for Deloitte Latin America, says that in Guatemala, the confectionery industry is worth around half a billion dollars. Although it is not a large market, it has well-positioned companies at the regional level and growth potential. On the other hand, Wendy Mena, leader of the Investment Attraction team at Invest Guatemala, points out that Guatemala is one of the world's leading sugar exporters.

 Pastries, cookies, and vitamins

Mena emphasizes that when talking about the country's potential in the confectionery sector, it is not just about sweets, but also pastries, cookies, and even vitamins: “Anything that can have sugar as a vital ingredient.”

To achieve the US$632 million increase by 2030, data provided by Prado indicates that three areas must be addressed: innovation in packaging, flavors, and formats; the development of value chains; and the local industrialization of inputs such as cocoa and milk. In addition, expansion into target markets must be improved, especially through digital channels.

 Prado also emphasizes that the value chain, of which Guatemala is already a part, must be strengthened. The deputy minister points out that the relationship with strategic partners should be leveraged to source products that cannot be obtained in the country. Among the countries with which there is a strategic relationship are Mexico, the United States, Costa Rica, and Peru; regions that, according to Prado, can help consolidate Guatemala as a confectionery competitor in the world.

 Mena adds that more companies are needed to supply other raw materials besides sugar, such as colorings, flavorings, and food additives. He also points out that, in light of new health trends, the strategy for promoting the country and developing more supply chains needs to be adjusted.

 On the other hand, Araneda, who is also president of the Sweets, Gum, and Chocolate Guild, affiliated with the Guatemalan Chamber of Industry, highlights the need to create a strategy for fluid transportation and economic decentralization to prevent all services from being concentrated in the capital city. González mentions that the lack of improvements in infrastructure, both in ports, roads, and customs, has been one of the main inhibitors to triggering greater growth and production.

 For Cifuentes, Mineco must work together with the Ministry of Foreign Affairs to address the new tariffs imposed by the United States. “We are paying 10% of the value of each container, and our biggest competitor is Mexico, which is not paying any taxes on confectionery,” Cifuentes points out.

 What does Guatemala offer?

According to Mineco, confectionery exports have increased between 2022 and 2024. In 2022, US$111.8 million was exported, a figure that rose to US$117.8 million in 2024. The main destinations for sweets manufactured in Guatemala are Mexico, with US$30.95 million; Honduras, with US$15.5 million; and the Dominican Republic, with US$12.3 million.

“We are a sugar country,” is how Araneda describes Guatemala. He points out that this ingredient and human capital are elements that give the country an advantage. In addition, Araneda mentions the trade agreements signed during the 2000s as another favorable point.

“It gives us an advantage to have the crop here in Guatemala and the production of sugar, as it allows us to be attractive to larger companies that can produce sweets,” says Cifuentes, adding that the country has traditionally had a considerable offering within the confectionery industry.

 On the other hand, Cifuentes argues that another aspect that benefits the country is its geographical position, as it is close to the largest markets: Mexico and the United States. According to Cifuentes, the country has the advantage of being able to sell to the south—both Central and South America—and to the north.

 What needs to be improved?

For Araneda, what Guatemala needs to improve can be summarized in four points: the security crisis, logistics and mobility, and the management of procedures. According to Araneda, there are currently up to 30 international ships waiting to be processed by customs, and procedures that should take a week are taking up to two months.

 Cifuentes adds that the overload at ports has caused some ships to decide not to stop at the port of Guatemala, which leads to wasted time: “The issue is that when you negotiate at the international level, you agree on a delivery date with the customer, and these delays definitely make us look bad.”

 On the other hand, Cifuentes asserts that procedures related to food control take up to three months, which also reduces competitiveness. However, according to Prado, Mineco is working closely with the Ministry of Health and the Ministry of Agriculture and Livestock to simplify and digitize procedures, so that registrations are increasingly agile and efficient.

 In another aspect, Mena argues that, despite having a competitive sugar price, competitiveness must be improved in areas such as labor and the cost of inputs such as electricity and water. Baselga, in turn, highlights the need for training and human capital, due to the migration of Guatemalans to the United States, which is causing a labor shortage.

 Innovation and new practices

Araneda mentions that the destinations already included in the Guatemalan sweet route are Central America and the Caribbean, as well as North America, due to free trade treaties and agreements signed between countries. However, he assures that there is capacity to export more. “I believe there is higher demand,” says Araneda.

González adds that regions such as Saudi Arabia and Israel could also be explored, as they could see potential growth in the medium term. Likewise, Cifuentes argues that there is a market opportunity in all the Caribbean islands, although there is currently no direct route to reach these regions.

 For Baselga, packaging is extremely important, especially for exporting to markets such as the United States, in order to differentiate products. Among these aspects, he mentions sustainability, which is becoming increasingly important for the target market.

 Baselga points out that Guatemala must become more sophisticated, both in terms of trends and certifications, in order to export to more mature markets. Cifuentes mentions that, in order to sell outside the country, quality and safety certificates are required.

 Cifuentes also points out that, in the case of the United States, it is important to have Kosher certification for the Jewish community and Halal certification, established in Islamic law. Based on this, Cifuentes emphasizes that it is possible to serve different markets and sell in greater proportions.

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