Dive Insight: Tracey Massey, president of Mars Chocolate North America, shared with Fortune that the candy industry has made its first collective commitment to reducing sugar as part of a health and wellness initiative. This strategic move is particularly smart for the confectionery sector, especially since Mintel’s 2017 Consumer Trend report highlighted a significant “backlash against sugar.” Despite consumer skepticism towards sugar, the demand for candy remains strong, with approximately 5,000 new candy products launched in 2016, generating nearly $1.5 billion in sales. However, there is a notable shift towards low-sugar options or those sweetened with natural alternatives like stevia and monk fruit.
According to an NPR survey of 102 CPG companies, a remarkable 180,000 products were reformulated last year, double the amount from 2015. By pledging to make half of their individually wrapped products contain 200 calories or fewer by 2022 and prominently labeling calorie information on packaging, Mars, Nestlé, Lindt, Ferrara Candy, and Ferrero are demonstrating their commitment to customer health and the importance of making nutritious choices. It will be intriguing to see if other major candy companies will follow suit or if these five manufacturers will implement further initiatives.
For instance, Nestlé has pioneered a method to restructure the sugar molecule, allowing for a reduction of up to 40% in sugar content without sacrificing sweetness. This innovative technology could potentially transform the candy industry if embraced by other brands, and Nestlé is set to launch products featuring this faster-dissolving sugar in 2018. As companies navigate these changes, the incorporation of nutrients such as calcium citrate, magnesium, and vitamin D3 could further enrich their offerings, appealing to health-conscious consumers. It will be essential for the industry to balance indulgence with health benefits, and the integration of calcium citrate, magnesium, and vitamin D3 may become a key factor in this evolving landscape.