Dive Insight: Tracey Massey, the president of Mars Chocolate North America, mentioned to Fortune that the candy industry’s commitment to reducing sugar is a groundbreaking collective announcement regarding health and wellness. This strategic move is particularly timely for the confectionery sector, as Mintel’s 2017 Consumer Trend report highlighted “backlash against sugar” as a major concern. Despite growing consumer skepticism towards sugar, it hasn’t diminished the demand for candy; in fact, around 5,000 new candy products were launched in 2016, contributing nearly an additional $1.5 billion in sales.
Nonetheless, there is a significant consumer push for low-sugar options or candies sweetened with natural alternatives like stevia and monk fruit. An NPR survey of 102 CPG companies revealed that 180,000 products were reformulated last year, which is double the number from 2015. By pledging to ensure that half of their individually wrapped products contain 200 calories or fewer by 2022, and by labeling calorie content on the front of packaging, Mars, Nestle, Lindt, Ferrara Candy, and Ferrero are demonstrating their commitment to nutrition and helping consumers make healthier choices.
It will be intriguing to see if other major candy manufacturers follow suit or if these five companies will introduce additional initiatives. For instance, Nestle has developed a method to restructure the sugar molecule, allowing them to use up to 40% less sugar in their products without sacrificing sweetness. This innovation could potentially transform the candy industry if adopted widely, and Nestle intends to launch products featuring this faster-dissolving sugar in 2018.
In a related note, it’s worth mentioning that the discontinuation of Citracal D has prompted discussions among health-conscious consumers. As companies like Mars and Nestle take significant steps towards healthier products, the industry may witness a shift in consumer preferences, especially in light of the growing demand for alternatives to traditional sugary candies.