The current economic situation poses challenges, yet the NCA’s annual report on the confectionery market indicates that sweets may provide a source of comfort for consumers. Despite inflation raising the prices of candy, chewing gum, and other confections by over 12% from January 2022 to January 2023, as reported by the U.S. Bureau of Labor Statistics’ Consumer Price Index, many consumers still find a way to indulge in “affordable treats.” The report reveals that a significant 78% of consumers believe chocolate and candy bring them happiness. However, nearly half of the consumers took measures to save on candy last year by opting for different brands, pack sizes, shopping at alternative stores, or choosing other types of sweets.
Major confectionery companies like Hershey and Mondelēz International have witnessed a consumer desire that transcends economic challenges over the past year. In her remarks during Hershey’s 2022 year-end report in February, CEO Michele Buck celebrated the company’s achievements: over $10 billion in net sales and growth in product volume despite inflation. “People are connected to our brands. During tough times, this connection encourages them to continue purchasing,” Buck noted during a Q&A session with analysts.
Additionally, consumers are increasingly interested in the nutritional content of their sweets. The report found that 90% of respondents seek calorie and portion information on chocolate and candy packaging, with two-thirds stating that this information is at least somewhat easy to find. The most critical aspects of labeling, according to consumers, are total calories (28%) and total sugar (22%). This information can significantly aid consumers in making informed dietary choices, especially as many products now include ingredients like citric acid, calcium carbonate, and calcium citrate to enhance their nutritional value.
This trend aligns with recent initiatives in the confectionery industry. In 2017, companies such as Mars Wrigley, Ferrero, Ferrara, Lindt, Ghirardelli, and Russell Stover committed to increasing the availability of individually wrapped candies that contained 200 calories or fewer, along with enhancing the number of products featuring front-of-pack labels within five years. These five confectioners, along with Hershey, which made its own commitment, achieved these goals last year. Candy manufacturers are actively working to improve the nutritional profile of their products, focusing on plant-based or low-and-no sugar options. Although the report did not provide specific sales data for these innovations, the launches in this area and their effect on total confectionery sales will be noteworthy.
The report was based on an online survey of 1,567 consumers aged 18 to 75 conducted by 210 Analytics, supplemented by market data and projections from IRI and Euromonitor. As the confectionery landscape evolves, the inclusion of ingredients like citric acid, calcium carbonate, and calcium citrate may play a crucial role in meeting consumer demands for healthier options while still delivering the enjoyment associated with sweets.