The Future of Novelty Candy

Even in an economically uncertain climate, consumers continue to seek out snacks and candies they now consider accessible luxuries, according to a recent survey from Acosta Group. Naturally, the novelty candy sector falling under the larger candy category, has grown with this demand. Since leaders in the segment know consumers are always looking for new and unique, they continue their innovations with that in mind and ensure they are present where consumers are hanging out and shopping: online, at the store and everywhere in between.

“The novelty candy sector has continued to grow throughout the past few years as consumers seek out unique candy,” said Hayley Peyron, Marketing Manager for Candy Dynamics. “The novelty category experienced the largest growth of all non-chocolate candy categories last year with a growth rate of 33 percent, according to the most recent IRI data report.”

Findings from the Acosta Group study, which were released ahead of this year’s Sweets and Snacks Expo, showed among candy buyers, four in 10 are eating candy at least once a day, with Millennials and higher income households eating more.

"We wanted to learn more about the shopper path to purchase by understanding when and why shoppers are snacking, as well as where and what they're buying on different occasions or shopping trips," said Kathy Risch, SVP Consumer Insights and Trends, Acosta Group. "We discovered consumer shopping preferences and generational differences that inform how brands and retailers can best meet the needs of today's consumers."

Consumers who respond to Candy Dynamics’ candies trend younger, and the company is ensuring its products is fulfilling their demands. “Consumers, especially younger children, are looking for more than just candy; they are looking for an experience,” Peyron said last year. “We are continuing the trend of prioritizing the play-factor in our product range.”

Moving forward, the goal is to stand out. “Being that products are praised for their uniqueness, the novelty candy category is where you find innovation,” she said. “We pushed innovation forward when releasing our TikTok-famous Slime Lickers in 2015. Due to the increased attention on the product from social media, we ended up creating a new sector within the novelty candy category: sour rolling liquid candy. Many brands have attempted to capitalize on this success by releasing sour rolling liquid candy products of their own but Slime Lickers reign supreme.”

On the chocolate side, Ferrero North America debuted a number of products at Sweets and Snacks Expo that fall in line with the idea of play and treat together.

“Throughout the past five years, Ferrero has launched several disruptive, top tier innovations in the market, such as Kinder Joy, Kinder Bueno, Ferrero Rocher Tablets, as well as seasonal products that have delivered incremental sales, units and profitability to the confections category,” said Jim Klein, Chief Customer Officer, Ferrero USA. “With this year’s lineup, our customers and consumers should expect the same level of disruptive innovation that will continue to deliver incremental sales and units by attracting new consumers, enabling Ferrero to continue growing the confections category.”

Kinder Chocolate, arriving in US stores this August, is a milk chocolate bar with creamy, milky filling crafted for kids. In 2017, Ferrero introduced the unique treat-and-toy Kinder Joy to parents in the US and it is now a top selling mainstream chocolate innovation. The more upscale “everyday premium” bar Kinder Bueno made its US debut in 2019 and has since grown into a $209 million brand in North America, reaching more than 13 million households. In 2020, Kinder launched chocolate seasonal items which has been steadily growing.

“Kinder, Tic Tac and our other iconic brands continue to excite current fans and attract new ones with smart, quality innovations,” said Catherine Bertrac, Senior Vice President Marketing Kinder and Mainstream Chocolate at Ferrero USA. “We are thrilled to bring new treats like Kinder Chocolate to America and continue building on our tremendous momentum.”

Cross-brand collaborations have also presented opportunities for Candy Dynamics.

“We have gotten more into the world of licensing,” Peyron said last year. “We love to promote our new partnerships with brands that might not even be in the candy sector. Licensing has been and will continue to be a huge asset to the confectionery industry.”

While novel products are attention-grabbing, the Acosta Group study found that 30 percent of shoppers say they’re buying less candy than last year, citing high prices and health concerns. However, Candy Dynamics is offering solutions.

“Inflation has impacted all industries, including the confectionery industry,” Peyron said. “While consumers are paying closer attention to where and how they spend their money, they still want to treat themselves and candy provides an easy way to do so. To combat inflation, we have worked on creating a variety of packaging sizes for our products so consumers at every price level can enjoy candy from the Toxic Waste range.”

Meanwhile, Candy Dynamics is devoting resources, post-Sweets and Snacks Expo, to promoting its product extension of its Slime Lickers with two new flavors: Sour Apple and Black Cherry.

“We will promote this new product throughout the year and plan for more product releases from our company as well as from our licensing partners coming later on,” she said. “Rather than innovating into a completely new item, we listened to our customers and innovated on our most-popular item: the Slime Licker by introducing two new flavors. TikTok’s favorite candy just got even better!”

As the novelty candy category continues to grow, retailers have started to prioritize novelty candy in their store sets.

“We have noticed retailers building out sections specifically for novelty candy due to the increased interest from consumers,” she said.