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Confectionery has helped bridge the gap of social distancing during the pandemic, according to the National Confectioners Association’s (NCA) State of Treating report 2021.
The annual look at confectionery shopper trends has identified the category’s resilience during the pandemic.
Overall the confectionery sales rang in at US$36.7 billion, down 0.2 percent from 2019.
In 2020, sales of chocolate grew 4.2 percent and non-chocolate grew by 2.9 percent in the US.
Meanwhile, gum and mints decreased in growth by 22.7 percent, a trend which can be attributed to far fewer social events taking place and significantly more working from home.
“When we debuted the 2020 State of Treating report in March last year, we never could have imagined the tectonic shift in consumer behaviors and the retail landscape that was about to occur,” Downs adds.
The organization further forecasts confectionery sales to grow to US$39.5 billion by 2025.
The social connection
Confectionery contributes to social connection and emotional well-being, according to the Association.
“People turn to chocolate and candy as a special way of bringing us together and play a critical role in finding safe and creative ways to stay connected to those we care about,” says president and CEO John Downs.
Notably, more than one in three (36 percent) US consumers reported having sent or dropped off confectionery gift baskets or care packages in lieu of visiting people during the pandemic.
Gifting remains a big selling opportunity, with 87 percent of consumers gifting candy or chocolate outside of seasonal events.
This contrasts with previous years, wher seasonal candy drove the category. The report highlights: “2020 was the year of everyday chocolate and non-chocolate.”
Contributing to well-being
The uptick in everyday chocolate and non-chocolate coincides with consumers seeking comfort during a challenging year.
NCA’s report finds that 75 percent of US consumers and 91 percent of millennial parents agree that chocolate and candy are integral to consumers’ emotional well-being and play a big role in celebrations.
“Whether it’s a quick escape, a celebration of a milestone or simply sending a treat to a friend from afar, chocolate and candy have helped Americans stay connected even when we couldn’t be together,” Downs affirms.
Changing behaviors
In all, 61 percent of shoppers changed up their confectionery purchases during the pandemic in one or more ways.
Throughout the pandemic, value packs and snack-size packs have been tracking well ahead of last year as consumers adjust for fewer trips to the store and by for multiple occasions.
The report found that 41 percent of consumers bought more value packs with individually wrapped candies.
Moreover, the Association found that consumers bought different brands, different items and shopped at different stores more often in 2020.
New omnichannel eating
As more consumers opted to buy groceries from home, it is no surprise that online sales of confectionery “skyrocketed.”
Households buying candy online at least twice in 2020 increased 76 percent, and the annual online dollars spent per buyer increased 14.3 percent.
Purchasing through new platforms is spotlighted in Innova Market Insights’ fifth Top Ten Trend for 2021: “New Omnichannel Eating.”
Delivery or pickup from local grocery stores also surpassed general online retailers as the top online outlets.
Social responsibility
Shoppers are also paying increased attention to social and sourcing claims related to their F&B ingredients.
The analysis found that 41 percent of all consumers say that transparency in ingredient sourcing and production processes influences their chocolate and candy purchases.
This number jumps to 48 percent for younger millennials and aligns with Innova Market Insights’ top trend for 2021: “Transparency Triumphs.”
Recognizing the importance of transparent ingredient sourcing, industry has responded with technology and traceability in the cocoa sector, such as Cargill’s CARE partnership or Olam’s AtSource platform.
Confectionery advancements
As consumers seek confectionery for a balanced lifestyle, brands are finding more ways to create better-for-you options.
Last month, Hershey announced its strategy to develop healthier versions of its classics and also invest in research for new forms of rare sugars.
Moveover, chocolates sweetened with ingredients from cocoa fruit are making waves this year as consumers demand more options with no added sugar.
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