Navigating the health-and-wellness trend
Health-and-wellness trends are taking the CPG and retail industries by storm, and that is no less the case when it comes to the confectionary industry specifically.
As consumer dietary habits have shifted in recent years, confectionary companies in particular have had a tougher task of finding ways to drive growth in the candy aisles. Candy sales have been trending down, with consumers opting for better-for-you snacks.
The bright spot for candy manufacturers and retailers has been novelty and seasonal confections.
In fact, a new report by IHS Global Insights shows that this year’s Halloween candy sales were up 5.5% — their biggest increase since 2011 — for total sales of $3.8 billion.
Yet despite the Halloween surge, candy sales overall have been lackluster in 2016. According to IRI, sales of chocolate candy were $10.7 billion in the 52-week period ending Oct. 30, a decrease of 0.4% from the previous year. Sales of non-chocolate candy were $5.5 billion, an increase of 0.6% during the same period compared with the prior year.
So the question for CPG and retail remains: How to navigate the sharpened consumer focus on health and wellness?
Larry Lupo, VP of sales/grocery, convenience and drug channels at Mars Chocolate North America, offered some answers.
“We’re seeing consumers snacking more often, and while they’re seeking healthier options, they refuse to compromise on taste — particularly within confection. Consumers know it’s not just about the calories — it’s the quality of those calories that really counts,” Lupo said. “To fit this need, Mars Chocolate is expanding its product portfolio to include a range of innovative snacking options. Our new gluten-free goodnessknows snack squares are a perfect combination. … Across Wrigley and Mars Chocolate products, we’ve also created 100 calorie packs of our most beloved brands.”
Lupo said he is seeing two new consumer trends when it comes to chocolate candy — a desire for new textures and the combination of real fruit with chocolate.
Non-chocolate candy seems to be performing a bit better, especially in drug stores.
“Gummies are still trending, and our gummy products in particular are performing very well in the drug channel,” said Edward Taylor, VP U.S. sales and operations at Wrigley. “Sales of both Lifesavers and Starburst brands are up (8% and 12%, respectively, year-to-date).”