How a Sweet Tooth Makes Cents

While they exist, it is hard to find people who don’t love a piece of candy or chocolate during the day for a sweet pick-me-up or for dessert after a savory meal. Consumers enjoy affordable luxuries and indulgences, especially when it comes to confectionery. In fact, the U.S. chocolate confectionery market grew 19 percent between 2007 and 2012 — during the Great Recession and subsequent economic downturn — states “Chocolate Confectionery — US,” an April report from global market research firm Mintel.

Trends with traction

One trend that is currently strong and will likely remain strong in 2014 is that of miniaturization.

“In confectionery, we expect that the current miniaturization trend that ramped up in 2013, where confectionery products take their brands and make them into mini or bite-size portions, to go even further in the years to come,” says Matthew Hudak, U.S. research analyst at Euromonitor International, Chicago.

Barry Rosenbaum, president, Nassau Candy, Hicksville, N.Y., believes a few main drivers are behind this miniaturization trend, including consumer desire for portion control and perceived value. When offered more pieces per serving, the consumer feels like he or she is eating more even when that really isn’t the case, he says.

However, the main reason for the interest in bite-size confections is that consumers are snacking more often. Moreover, Chicago-based Information Resources Inc. (IRI) mentions in its “2013 State of the Snack Industry” report that 55 percent of consumers choose what tastes good over what is healthful when selecting a snack, and 34 percent of consumers are looking to satisfy a specific craving.

“People’s eating habits are changing,” Rosenbaum says. “They are eating more often throughout the day, and we’re finding that there is a lot of crossover now between confectionery and snacking.”

He gives the examples of a peanut butter-filled pretzel covered in chocolate or a sea salt caramel as snacks that provide both a sense of indulgence and a salty/sweet combination, both of which consumers are looking for in a snack.

Another trend among consumers, that toward health and wellness, is effecting a wide variety of changes within the confectionery industry. For example, while chocolate is widely known for its healthful attributes, add-ins such as heart-healthy nuts and fruit pieces help boost that perception.

And those fruit pieces need not be of the ordinary sort. According to Mintel’s June report “Category Insight: Chocolate Confectionery,” 2013 saw an increase in exotic fruits mixed with chocolate, including passion fruit, mango, pineapple and pomegranate; that trend is likely to spill over into 2014 as well.

Trends on the horizon

An emerging trend in the confectionery category tied to consumer interest in health and wellness is a rise in gluten-free, all-natural and non-GMO offerings, Rosenbaum says.

“Our company is really focused on non-GMO and all-natural, as we see this trend is gaining momentum. In fact, we have an entire team dedicated to creating non-GMO and all-natural products, both from a color and flavor perspective,” he says.

Another emerging trend that Nassau Candy believes will become even bigger in 2014 is the emphasis on color-specific candies. Consumers are interested in buying color-specific candy to match parties and events, whether they are gumballs, jelly beans, chocolate discs or Jordan almonds.