Along with the snacking industry, the confectionery business is experiencing its own set of changes.
With sales rising to $25.5 billion and accounting for 3 percent of all sales across the store, confectionery is a "powerhouse," according to Larry Levin, executive vice president, consumer and shopper marketing, IRI, who presented the "State of the Market: Confectionery" session at this year's Sweets and Snacks Expo.
In 2018, confectionery dollar sales were up 1.2 percent, while volume experienced a small uptick of 0.7 percent. Units, however, were down slightly by 1.5 percent due to an increase in share-pack purchases.
Three key confectionery themes emerged last year: experiential (think indulgent, sensorial and exciting), expectation (think flavor, texture and familiarity) and simplicity (think healthy, convenient and natural). Driven by these themes, 2018 was defined by expansive growth in confectionery products that highlighted such attributes as:
- Non-GMO Project verified — Still a trendy consumer demand, Non-GMO Project verified products jumped 20 percent in sales to $149 million, including $111 million in chocolate products and $38 million in non-chocolate products.
- Organic — Maintaining its stability as a core driver in confections, organic products were up 12.8 percent to $79 million in sales last year.
- Gluten free — As the most prolific consumer-demand attribute in confections, gluten free products accounted for $469 million in chocolate sales and $317 million in non-chocolate sales in 2018.
- Fair trade — As the fastest-growing attribute among confectionery consumers, fair trade products grew 11 percent in sales year over year to $192 million, and has experienced nearly 70 percent growth since 2015.
"Across generations, sustainability is also becoming increasingly important, and confectionery products such as natural and organic stand out as sustainable practices and cues," Levin noted. "Sustainable products have driven significant dollars and are projected to continue. In fact, 41 percent of Gen Z and millennials seek retailers who carry sustainable products."
Based in Chicago, IRI is a market research firm providing clients with consumer, shopper and retail market intelligence and analysis focused on the consumer packaged goods industry.
The 2019 Sweets and Snacks Expo, hosted by the National Confectioners Association, took place May 21-23 at Chicago’s McCormick Place West.