As the holiday season rapidly approaches, Halloween is just around the corner, bringing increased attention to the candy, gum and mint segment. With that attention comes new products, trends, purchasing behaviors, snacking habits and sales increases.
Based on Mars’ “Tricks, Treats, and Trends Report,” the candy varieties purchased most often include chocolate (88%), peanut butter/peanut (45%), gummies (43%), fruity (37%), sour (32%) and Halloween specific (44%).
“The state of the confectionery is strong. Confectionery sales hit $48 billion in 2023 and are projected to reach $61 billion by 2028,” said Carly Schildhaus, public affairs manager for the National Confectioners Association. “More than 98% of American consumers purchased chocolate, candy, gum and mints in 2023, and seasonal celebrations — Valentine’s Day, Easter, Halloween and the winter holidays — account for 64% of total chocolate and candy sales.”
Even though most consumers enjoy treating themselves to new and exciting candy now and then, it’s the younger generations that are most looking for the new candy trends.
“Millennials and Gen Z are most likely to browse the aisle for something new and purchase their candy online, so it comes as no surprise that multisensory experiences and social media stars are also trending in chocolate and candy,” said Schildhaus. “Classic and nostalgic favorites are being reimagined with fun and unique textures and flavor combinations. As more consumers turn to social media to share their favorite candy innovations, confectionery companies are also joining in on the fun.”
Consumers’ Confectionery Demands
For the 52 weeks ending July 14, inflation appeared to have put a damper on chocolate and non-chocolate candy unit sales. Chocolate candy unit sales dropped 6.2%, likely impacted by the 6.7% increase in price per unit. Meanwhile, non-chocolate candy units saw a 9.9% rise in price per unit, which likely contributed to the 4.4% dip in unit sales, according to Circana.
Mike Jones, director of marketing for S&S Petroleum Inc., operator of 90 locations in four states, has seen a significant decline in unit sales for candy at his convenience stores.
“When we look at the category on a unit growth basis, we see a much different picture. Units are expected to be down 7-9% year over year,” he said. “This will also have an adverse impact on penny profit as margins are the same on fewer units, and promotions are driving overall margins down slightly.”
Despite candy unit sales declining, the category’s dollar sales continue to increase.
Chocolate candy reached $3.61 billion in dollar sales, keeping the segment steady (up 0.1%) for the 52 weeks ending July 14, per Circana. Non-chocolate candy earned $3.37 billion in dollar sales, a 5.1% increase for that same period.
“I’d expect growth in dollars to continue while units remain relatively flat,” said Joseph Bortner, senior category manager for Rutter’s, operator of over 80 locations in Pennsylvania, Maryland and West Virginia. “Looking ahead, the innovation cycle is launching earlier than years past, which should drive some incremental Q4 growth.”
At the Army & Air Force Exchange Service (AAFES), which has over 580 Express c-stores, shoppers are looking for value through trade-up packaging and deeper discounts when purchasing in bulk, noted Faye Shaw, buyer for Express stores. “Value is an important driver and is anticipated to remain key for Exchange shoppers,” she said.
“In candy, share size is king. The retail spread between standard and share size is shrinking,” added Jones. “There is still growth in the larger packages, too. This is due to a shift from immediate consumption to a more ‘eat some now, save the rest for later’ mindset.”
Besides purchasing in bulk, a number of consumers are still looking for the newest and most innovative candy on the market.
“Consumers are demanding new experiences. This is primarily driven through innovation and limited-time offers, which many confectionery brands have continued to implement over the past year,” said Bortner.
Jones mentioned that taste profiles related to heat and sour also seem to be a significant factor in consumers’ candy choices.
Innovation remains critical to the chocolate category at AAFES c-stores.
“The Exchange has seen tremendous success with Hershey’s Reese’s Caramel Cup and Olympics Medal chocolate bar,” said Shaw. “Non-chocolate is the leading category in 2024 with Ferrara’s Nerds Gummy Clusters as the top driver.”
Gum & Mint Innovation
Gum and mint dollar sales have been on the rise in c-stores. For the 52 weeks ending July 14, gum brought in $1.20 billion in sales, a 9.3% increase, according to Circana. Breath fresheners brought in $306 million, a 3.4% increase in dollar sales for that same time frame.
Jones mentioned that most of S&S Petroleum’s sales growth for gum and mints comes from larger packs.
When it comes to gum and mint trends, flavor and functionality significantly influence what kind of gum and mints consumers purchase.
“The Exchange is adding more berry and sour flavors for the second half of 2024,” said Shaw. “Gum products with electrolytes, vitamins and oral-health ingredients are also popular and add functionality for shoppers.”
Retailers are getting creative when adding new products to their candy sections to keep up with the latest innovative items from candy, gum and mint brands and consumers’ demands.
“These categories are always under a microscope and up for review,” said Bortner. “We are continuing to monitor promotional effectiveness, set efficiency and react to the markets’ demand against our programming.”
Driving Sales With Promotions
This past year, Rutter’s implemented a new promotion that put the spotlight on confection. “It helped deliver massive growth on brands that participated and is something we eagerly look forward to building upon in 2025,” said Bortner.
At S&S Petroleum, the convenience store chain is promoting a three-for-one standard-sized and two-for-one share-sized deal.
“However, with share size making up 75% of the sales, it shows where the customer demand really is,” said Jones. “As a result, we are dedicating more space to share size and much less to standard.”
The Exchange is executing aggressive promotions using buy-more-save-more techniques, noted Shaw.
All things considered, retailers must stay on top of the candy, gum and mint trends while offering these products at prices consumers can afford. Keeping these tactics in mind will allow retailers to see even more growth in confection going into the new year.