Increased prices due to inflation meant consumers purchased less confections, but the category still saw growth.
According to the National Confectioners Association’s (NCA) State of Treating 2024 report, confectionery sales in 2023 reached $48.8 billion.1 A majority of sales were chocolate with $25.9 billion, followed by non-chocolate candy with $19.2 billion, and gum with $3.7 billion. Interestingly, non-chocolate candy and gum/mints had the largest sales growth with $11.6 billion, or 12.1% growth compared to a year ago, for non-chocolate candy and $4.8 billion, or 15.4% growth compared to a year ago, for gum/mints. The market research firm SPINS saw similar trends in 2023, with non-chocolate candy and gum/mints driving 53% of candy growth.2 Much of the sales increases, says NCA and SPINS, is due to inflation.
For example, brands have adjusted prices of chocolate to reflect the increased cost of the key ingredient cocoa. So, while consumers may have purchased less because of this, there was still sales growth.2 That said, consumer habits did change, says NCA. According to their report, 41% of consumers changed their purchasing habits, with 44% reporting that they were buying candy less often and purchasing less during each trip.1 They were therefore more motivated to purchase confections that were under promotion, with 30% of consumers stating that they purchased candy when it was on sale.
Given that consumers are buying less often and smaller quantities, they are more deliberate about their purchase. NCA says that price and brand are the top two factors that influence purchasing decisions, followed by mood, nutrition, and sustainability commitments.1 With 86% of consumers believing that it’s fine to occasionally have a piece of chocolate or candy, and 80% of consumers believing there is a connection between physical and emotional well-being, people won’t necessarily hesitate to buy confections when the mood strikes. The question is what they think is worth buying.
For some it may be an opportunity to make healthier choices, such as buying smaller pack sizes or better-for-you options such as sugar-free or organic confections. Unfortunately, NCA points out that while 53% of consumers believe there is such a thing as better-for-you chocolate or candy, only 13% frequently purchase it. The challenge is finding that balance between indulgence and health. The occasional confectionery buyer may opt for an indulgence they recognize based on brand name or favorite SKU, but may feel better about their purchase if they can find a low-calorie option, or a product with a desirable health claim. Chocolate, for example, can be a great vehicle for functional ingredients like protein or botanicals, offering consumer a guilt-free indulgent experience.3
Data from Euromonitor suggests that the confectionery category will continue to see substantial growth in the coming years, anticipating $12.2 billion (including the impact of inflation) growth by 2028 to reach $61 billion in sales. Based on these trends and predictions, NCA says that brands and retailers should “create and communicate a clear and strong value proposition that leverages candy’s permissibility, affordability, and favorability.”
References
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