Important takeouts:
- The confectionery industry showed resilience in 2024 with sales of $54.2 billion, but the volume of units fell, but dollar sales increased due to inflation.
- Consumer behavior shifted to values, with prices being taken over as the biggest buying factor, increasing shopping at clubs and dollar stores, and increased interest in promotions.
- Successful strategies for food industry leaders include leveraging promotions, exploring private label offerings, promoting product discovery through the use of social media, and addressing a growing interest in better options and packaging flexibility.
The confectionery industry continues to show responsive resilience amidst the economic challenges. 6th Annual Treatment Report From the National Confectionery Association. With total sales across all channels reaching an impressive $54.2 billion in 2024, the industry offers valuable lessons for food manufacturers looking to navigate similar market conditions.
Despite the challenges, stable market growth
Confectionery sales were strong in 2024, with chocolate leading the category at $28.1 billion (51.9% of sales), followed by non-chocolate candies at $21.7 billion (40.0%), and gum and mint at $4.4 billion (8.1%).
In the measured retail market, total sales reached $38.6 billion. However, while prices increased, dollar sales increased, particularly in chocolate, units and volume sales decreased. This reduced unit sales by 3.3% despite an increase in dollar value by 0.4%. In particular, non-chocolate candy was better than the category, where sales increased by 4.9% and sales of only 0.3% units fell.
Consumers adapt to costs for value
98.3% of US households purchased confectionery products at least once in 2024, showing the broad appeal of the category despite economic challenges. Consumers have slightly increased 35.6 trips per buyer each year, an increase of 1.5% from last year), but spending has become more and more strategic by switching channels, pack sizes, types and brands to maximize value.
Prices surpassed mood last year as the top buying determinant, with 30% of consumers reported being treated more frequently due to cost concerns. This change in priorities was also evident in channel preferences as valuable retailers such as clubs and dollar stores gained traffic while convenience and drug stores declined. E-commerce also continues to show robust growth in the confectionery category, indicating key opportunities for digital innovation and engagement strategies.
Respond to consumer confectionery trends
For food industry leaders, especially in the confectionery sector, the latest treatment reports offer some practical insights.
- Promotional power: The report shows that 41% of consumers regularly look for promotions when purchasing their own snacks, and 44% do so for holiday purchases. This confirms the potential for a well-executed promotional strategy ROI across categories.
- Private Label Strategy: Private label chocolate has increased volume by 10.7%, showing how strategic private brand offerings can attract value-seeking consumers without sacrificing margins.
- The impact of social media: Almost 30% of consumers discover new confectionery products through social media, highlighting the growing importance of digital engagement in product launches and innovation stories. (Our Consumer Food Trends Report found that 41% of shoppers discover new food and drink products through social media.)
- Better growth: More than 6 in 10 consumers believe there is something better like sweets (over the past few years), but only 10% buy these products regularly. This illustrates both opportunities and challenges for product developers in balancing health claims and taste expectations.
- Package Flexibility: The report points to strong consumer interest in various package sizes and resealable packaging as part of its efforts to increase the value and control section.
- Transparency requirements: Young consumers particularly appreciate their commitment to transparency and sustainability in sourcing ingredients, and often explore these details through packaging labels and brand websites.
The Euromonitor Project predicts that the market will continue to grow in its confectionery category, reaching $70.5 billion by 2029. Chocolate could continue to dominate sales, but is expected to gain a share.
Continuing success in the confectionery sector depends on companies balancing three factors across the food industry. Acceptability (provides consumers feel better about their choice), affordability (provides value in different price ranges), and favor (consistently offering taste and quality expectations).
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