The new candy aisle: Where wellness meets whimsy

Woman holding a lollipop and covering her eyes. Gray background
As consumers seek healthier ingredients and functional benefits without sacrificing indulgence, confection brands are reimagining the candy aisle with cleaner labels, nostalgic flavors and new value-driven innovation. (Image: Getty/macniak)

Consumers are demanding cleaner labels and functional benefits from confectionery, but taste, texture and fun still rule, creating opportunities for brand to balance better-for-you innovation with indulgence

Consumer demand for healthier, better-for-you and functional benefits is reshaping the confection category, which avoided reformulation pressure significantly longer than other segments, including snacking, according to data presented at the Sweets & Snacks Expo in Las Vegas in mid-May.

But ‘everyday relevance,’ flavor and fun still drive most purchases in the space – giving the category more wiggle room for artificial colors, flavors and ingredients that consumers are cutting back on in other categories – like sugar, sodium and saturated fat, suggests data from Spins, Euromonitor and Circana.

In this month’s special edition, the FoodNavigator-USA team explores how the intersection of these trends is reimagining a candy aisle where wellness and whimsy coexist.

Balancing better-for-you and indulgence

For example, we explore how important better-for-you attributes, such as clean label and functional benefits, are for candy consumers.

According to Spins, about two-thirds of consumers (67.8%) often or always try to make healthy eating choices – a number that jumps to nearly three-quarters (73.4%) for millennials.

For confection, this means looking for added benefits – like energy and focus in gum – and products that fit within specific diets – like Mondelēz’s Hu Chocolate’s paleo-friendly bites.

It also means consumers increasingly are looking for clean label ingredients, which Spins said is the most important attribute in snacks and confections for 16% of Gen Z and Millennial shoppers.

Data presented by 210 Analytics at the Sweet & Snacks Expo also found one in four shoppers actively look to avoid artificial colors and flavors in confections. In addition, 30% of shoppers consider no high-fructose corn syrup, natural sweeteners and no preservatives as part of their definition of less-processed chocolate or candy.

But while these numbers are creeping up, the data overwhelmingly suggests that taste, flavor and experience are more important to consumers buying chocolate and candy.

For example, data from Spins shows taste options are the most important attribute for 44% of Gen Z and 47% of Millennials. Texture also is increasingly important with 23% of Millennial and Gen Z consumers seeking products that are sweet and crunchy, 20% gravitating to sweet and chewy, and 19% preferring products that are fruity and chewy or fruity and creamy.

The role of price in choosing sweets

In this special edition, FoodNavigator-USA also looks at how price is influencing confection purchases and innovation.

So far, chocolate has suffered the brunt of the impact, with sales holding steady but units and volume dropping precipitously since 2021.

In response, several companies are exploring how to deliver chocolaty experiences to consumers at lower price points by replacing cocoa with other – often unexpected – ingredients, like grape seeds and sunflower seeds.

Explore these stories and more by clicking through on the headlines below, or for FoodNavigator-USA subscribers, by checking your inbox for the confectionery trends special edition.

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Confectionary trends: Balancing better-for-you trends and indulgence

Cracks in chocolate’s ‘affordable luxury’ status could signal broader shopper shiftsChocolate is still growing in dollars, but the real story is what unit declines and demographic shifts may reveal about changing confection preferences

Barry Callebaut bets on cocoa-free chocolate – The launch of ChoViva in North America at Sweets & Snacks Expo last week reflects a growing push to diversify beyond traditional cocoa amid climate and pricing pressures

Cargill joins alternative chocolate race with Barry Callebaut and Nestlé amid cocoa volatilityBy upcycling grape seeds, Cargill’s new NextCoa offers CPG brands a vegan, allergen-free option as major manufacturers hedge against soaring cocoa costs

What’s driving the new era of chewing gum? – Function, flavor and fun continue to drive gum’s trajectory within the broader confectionery space

Mondelēz’s Hu Chocolate takes premium, paleo-friendly bites to Target – Co-founder Jordan Brown says the brand’s retail expansion proves clean-label ingredients and premium indulgence are no longer niche consumer demands

Can candy revive RTD tea? – Candy-inspired nostalgia could give RTD tea a much-needed spark, as brands like Ryl Tea use confectionery flavors to attract younger, health-conscious consumers into the category