US confectionery industry achieved US$48 billion in record sales during 2023
14 Mar 2024 --- The US confectionery industry has reached a landmark US$48 billion in sales in 2023, according to the National Confectioners Association’s (NCA) latest State of Treating report. The industry high comes despite the “economic squeeze” consumers are facing.
The report, which is the NCA’s fifth annual dive into the nation’s confectionery trends, projects an even sweeter future, with sales expected to reach US$61 billion by 2028.
It also highlights that the price increases across chocolate and non-chocolate candies were influenced by inflation.
“Our new research shows that, even when faced with unpredictable environmental shifts and changes, consumers feel a strong connection to chocolate and candy,” says John Downs, NCA president & CEO.
“They embrace classic favorites and innovative novelties with an emotional drive that keeps the category fresh and vibrant. ”
Industry trends
Despite the economic squeeze, categories like gum and mints saw growth in dollars, units, and volume, painting a complex picture of the industry’s dynamics.
Chocolate continues to hold the biggest share of confectionery sales, ringing in at US$25.9 billion, while gum chewed its way to US$3.7 billion. The growth rates across segments provide a nuanced view of consumer trends, with chocolate growing at 5.8%, non-chocolate candy at an impressive 12.1% and gum and mints leading the pack with a 15.4% surge in sales.
Amid the pandemic-induced shift, companies like Mars Inc. have rebranded gum from a breath freshener to an instant stress reliever, tapping into the growing awareness of emotional well-being. This move reflects a broader trend introduced by the NCA report, where 80% of consumers now see a link between physical and mental health.
Good Day Chocolate, a US-based company, is also providing chocolate tailored for sleep, calmness and energy. Focused on addressing specific “need states,” the company targets areas such as mental well-being by offering products designed to promote relaxation and calmness.
Holiday seasons remain the prime time for confectionery sales, with 64% of purchases occurring during key celebrations such as Valentine’s Day, Easter, Halloween, and the winter holidays like Christmas.
However, according to the report, the decision to indulge is increasingly price-driven, with brand loyalty and other factors like mood, nutrition and sustainability playing varied roles across different generations.
Edited by Sichong Wang
