CANDY
The Outlook Is Sweet Candy category growth is expected through at least 2026, powered by product innovation By Brian Berk IF THE CANDY category’s performance in 2021 is any indication of the results that will be seen this year — which industry insiders believe will be the case — then convenience store retailers have reason to be as enthusiastic about the category as “a kid in a candy store.”
The total confectionery category reached a record $36.9 billion in retail sales in 2021, according to the third-annual State of Treating report published by the National Confectioners Association (NCA), the trade association that supports the U.S. confectionery industry. Convenience stores enjoyed the largest growth in confectionery products of any retail channel last year. Sales at c-stores totaled $6.8 billion, an increase of 12.6 percent compared to the prior year. The convenience channel is fast approaching supermarkets and food stores, which accounted for the most confectionery sales last year at $7.6 billion. Anne-Marie Roerink, principal at 210 Analytics, who collaborated with NCA on the report, acknowledged that inflation was certainly a factor when comparing 2021 candy sales to 2020. However, even without the impact of inflation, candy had an excellent year in 2021. “Candy sales got a boost from price increases across items, and while the industry was and is certainly not immune to the supply chain disruptions, out-of-stocks seem to be a little better than in departments such as frozen 58 Convenience Store News C S N E W S . c o m
foods,” Roerink told Convenience Store News. “All of this helped candy achieve a record year with doubledigit increases.”
What’s Selling According to Roerink, non-chocolate candy had “an enormous year” in 2021, which contributed to strong sales for convenience store retailers. Chocolate also managed to grow over a strong 2020, and gum and mints staged a full comeback from a difficult 2020. “An all-around win” is how Roerink described the convenience channel’s results. In the chocolate segment, dark chocolate keeps vanishing quickly from retailers’ shelves, noted Molly Jacobson, director of business development at Frankford Candy, known for its eponymous brand, as well seasonal treats such as Peeps and Elf on the Shelf. “There is increasing demand for dark chocolate as it has less sugar and a stronger cocoa taste than milk or white chocolate,” she said. The chewy non-chocolate segment is also having a moment, Roerink stated, pointing out that overall non-chocolate sales saw a year-over-year gain of 19.6 percent in 2021. “Chewy non-chocolate is an amazing story. [It] represents half of all non-chocolate sales,” she explained. “Usually being that big of a segment means that your growth rate is going to be small, but not for chewy. Chewy candy still had a massive year and that’s on top of having a tremendous 2020, 2019, and
