In this study, the phenolic extract of peppermint was loaded within a sucrose matrix at three concentrations (3%, 5%, and 10%) by the co-crystallization process. Physical properties (flowability, color indices, density, solubility, and hygroscopicity), total phenolic content (TPC), and antioxidant properties (DPPH*, ABTS+, OH* radicals scavenging activity, and reducing power) and morphology of the samples were evaluated. The co-crystallized powders (Co-10%) were substituted with sucrose at different levels (25%, 50%, 75%, and 100%) in the gummy candy formulation. In this study, the encapsulation yield (EY) of phenolic compounds was about 82%. It was identified that increasing the concentration of the loaded within a sucrose matrix caused chroma and b* values of the samples to significantly increase. The powder containing 10% peppermint extract with the highest loading capacity (1.85 mg GAE/g) shows the highest antioxidant capacity in DPPH inhibitory (64.07%), ABTS+ (52.9%), TEAC (1.38 mM), OH radical scavenging activity (77.65), and reducing power (0.92 Abs700). Also, scanning electron microscopy images showed the clusters with porous structures in co-crystallized powders. The differential scanning calorimeter results of co-crystallized peppermint extract showed that the melting point slightly increased to a higher temperature. The gummy candy formulated using 75% co-crystallized powders had the highest score in terms of color, texture, and taste. In general, the co-crystallized powders replace with sucrose in various confectionery products, fruit desserts, jams, and functional foods. Novelty impact statement The co-crystallization is an effective method for encapsulating of the bioactive compounds. The gummy candy formulated using co-crystallized powders had the highest score in terms of color, texture, and taste. Color indices, texture, antioxidant activity, and sensory characteristics of gummy candies were affected by the concentration of active compounds.