Candy has managed to retain the loyalty of c-store customers as 2023 continues forward despite inflation dogging consumers’ steps.
Although unit sales might be subsiding marginally, sales dollars are elevated across all channels, noted Dan Sadler, principal, client insights at Circana, a market research firm.
“Before, probably eight to 12 months ago, we really saw that, even though candy in general is pretty insulated from inflation. … Even with higher prices, (customers) might buy a little bit less, (but) they’re still going to buy confections; they’re not going to forego it,” he added.
NielsenIQ data corroborated Sadler’s observations. The 52 weeks ending April 29 shows candy dollar sales up by 11.9% at retail stores across the U.S., including c-stores. Unit sales dropped by only 2.2%, yet the average unit price has risen by 14.4%.
Tiger Fuel Co.’s The Market, which has nine locations in Virginia, has seen upward growth in the candy category.
“We are seeing year-over-year growth in units — not just sales dollars due to price increases. The growth is being led by bagged candy, and we have been working to expand our assortment to make sure we can keep up with the demand in this area,” said Nick Rogers, retail merchandising manager for The Market.
Reese’s has maintained its spot as the top-selling chocolate option at The Market.
In terms of dollar and unit sales, chocolate still reigns in the candy category despite its 4.2% dip in unit sales per NielsenIQ.
Chocolate also leads the category at Cliff’s Local Market, “but the gap is closing,” according to Bill Laraby, purchasing manager at Cliff’s Local Market, which operates 20 locations in New York, with its 21st location slated for this fall.
The Rise of Non-Chocolate
Gummies and fruit snacks are trending at Cliff’s.
“We continue to see great growth in non-chocolate,” said Laraby.
In fact, he noted non-chocolate has driven the growth in dollar and unit sales for the candy category, “with an honorable mention to gum.”
Cliff’s has recently expanded its peg bag sets to include an additional 16 facings due to the popularity of the gummy segment and the number of new gummies that have entered the market.
“Sour Patch, Swedish Fish, Haribo, Trolli and Life Saver gummies are all doing well. We have seen a resurgence in the Nerds, Airheads and Gushers brands,” said Laraby.
Non-chocolate candy nearly reached $10 billion in dollar sales for the 52 weeks ending April 29 per NielsenIQ, having risen by 14.3%, while unit sales remained relatively flat (down 0.8%).
What could be contributing to candy sales is the widespread innovation Sadler has noticed.
“Within chewy candy you’re seeing different formats for some of the different candies. Just different ideas (to) make it fun and exciting for the users. A lot of it’s about experience and being able to touch and feel the products,” he said.
Gum, Mints and Other Trends
Gum and mints have begun gaining traction since in-person activities have resumed post-COVID.
Unit sales have ticked up 2.4% and 1.8% respectively, with dollar sales notching 17.1% and 15.5% gains respectively, per NielsenIQ.
Cliff’s, too, has seen post-pandemic growth. “Gum took a big hit during the pandemic and has seen a nice bounce back this year. Pocket packs and bottled gum have been growing,” said Laraby.
Sadler predicted innovation will soon pick up in the subcategories. Already he’s noticed different attributes in gum offerings, although not as many as in chocolate and non-chocolate products.
“We are seeing innovation around vitamins in gum. You’re seeing a little bit more of some different characteristics that weren’t as prevalent before,” he said.
As for other trends, Sadler has seen a rise in better-for-you and zero-sugar products, as well as a higher demand for plant-based products. Limited-edition items are also popular in the candy category.
At The Market, customers have expressed a greater interest in novelty candy items, “and we have started to look to expand upon that segment,” said Rogers.