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Although sales for nonchocolate candy grew by more than 7 percent between 2005 and 2006, the market is only expected to post a moderate 4 percent growth this year, with smaller increases ranging between 2.9 percent and 4.2 percent per year over the next four years, leading to a $10.6 billion market by 2011, according to "The U.S. Market for Non-Chocolate Candy," a new report from research publisher Packaged Facts.
According to the report, 2006 and 2007 gains were flavored by several factors including an increase in alternative and special channel distribution; modest increases in both pounds shipped and prices, with manufacturers passing high commodity prices onto retailers and consumers; and increased options for sugar-free and diet candy.
Packaged Facts expects the continuing trend toward "healthy" candy, including single-serve, organic, functional and fortified candy, to play into the market's future growth. Other factors influencing growth include the increasing buying power of kids, 89 percent of whom consume non-chocolate candy, and the expected population domination of the 50- to 69-year-old crowd, which generally lacks traditional brand loyalty but not the desire to indulge in treats, despite health concerns.
"Nonchocolate candy is still driven by indulgence and fun," noted Tatjana Meerman, the publisher of Packaged Facts. "We expect players in the marketplace will be adept at increasing the engagement component of candy and integrating health and wellness concerns into new products for children and adults in the near future."