Dive Insight: Tracey Massey, the president of Mars Chocolate North America, shared with Fortune that the candy industry’s commitment to sugar reduction marks the first collective announcement concerning health and wellness in this sector. This strategic move aligns with Mintel’s 2017 Consumer Trend report, which highlighted the “backlash against sugar” as the top trend. Despite growing consumer skepticism regarding sugar, appetites for candy remain strong; in fact, the category experienced approximately 5,000 new product introductions in 2016, contributing nearly an additional $1.5 billion in sales. Nevertheless, there is a significant demand for low-sugar alternatives or candies sweetened with natural options like stevia and monk fruit.
A survey conducted by NPR among 102 CPG companies revealed that 180,000 products were reformulated last year—double the number from 2015. By pledging to make half of their individually wrapped products 200 calories or less by 2022 and by clearly marking calorie counts on packaging, companies like Mars, Nestle, Lindt, Ferrera Candy, and Ferrero are demonstrating their commitment to customer health and the desire to assist consumers in making better choices. It will be intriguing to observe whether other major candy manufacturers will follow suit or if these five will undertake additional initiatives.
Nestle, for instance, has innovated a method to restructure sugar molecules, allowing them to reduce sugar content by up to 40% without sacrificing sweetness. This breakthrough could transform the candy industry if other companies adopt it, and Nestle plans to launch products featuring this faster-dissolving sugar in 2018. As consumers increasingly prioritize health, initiatives that celebrate healthier options, such as “celebrate calcium plus 500,” will likely gain traction, reinforcing the trend toward healthier candy alternatives.