Hard Candy Market: Innovation, Value, and Consumer Preferences in 2024

Explore how the hard candy market is evolving in 2024, with rising consumer demand for value, innovation, and better-for-you options despite inflationary pressures.

Overview of the Hard Candy Market in 2024

Hard candy remains a beloved treat, and despite rising inflation and increasing costs, consumers continue to indulge in the category. However, recent market trends indicate a shift in consumer behavior, with many seeking value and healthier options. Perfetti Van Melle USA’s non-chocolate candy category director, Chris Borges, highlights this shift, particularly in the lollipop segment, where consumers are increasingly looking for more affordable ways to enjoy their favorite sweets.

Borges notes that consumers are purchasing both larger and smaller pack sizes, depending on their budget. “Shoppers are either picking up larger pack sizes to get a better price per ounce or smaller pack sizes for lower absolute price points,” Borges explains. “Consumers still want lollipops, and candy in general, but they are seeking good value where they can.”

Market Performance and Key Data

The hard candy market experienced moderate growth over the past year. According to Circana’s multi-outlet data, the category grew by 5.2%, generating $1.1 billion in sales for the 52-week period ending June 16, 2024. However, unit sales fell by 4.9% to 498.5 million, while the average price per unit rose by 10.7%, reaching $2.25.

Three major players dominated the category, all experiencing growth:

• Hershey Company: Sales increased by 5.7%, totaling $171.2 million.
• Bazooka Candy Brands: Sales surged by 29.2%, reaching $127.1 million.
• Storck: Sales grew by 3.1%, totaling $125.4 million.

Consumer Preferences: Value and Health-Conscious Choices

In addition to seeking value, consumers are increasingly interested in innovative and better-for-you products in the hard candy category. Heidi Dorosin, co-CEO of SmartSweets, observes that many consumers are opting for lower-sugar options that still evoke the flavors of their childhood favorites. “They’re seeking out products with less sugar and are shying away from those with artificial sweeteners,” Dorosin notes.

SmartSweets offers a nostalgic twist on lollipops, providing products without artificial sweeteners, added sugar, or sugar alcohols. The brand’s lollipops come in flavors such as Blue Raspberry and Watermelon, and contain just 1 gram of sugar per two lollipops.

Similarly, Zolli Candy, founded by Alina Morse, has introduced innovative products catering to the health-conscious market. Despite rising costs, Zolli Candy continues to see demand for its zero-sugar offerings. One of its latest products, Zolli Gum Popz, is a sugar-free gum lollipop that features a strawberry-flavored gum surrounded by strawberry hard candy. “Zolli Gum Popz are dye-free, allergen-friendly, natural, vegan, keto, and gluten-free,” Morse explains, emphasizing their wide appeal.

Flavor Trends and Product Innovation

Although traditional flavors like fruit and mint remain popular in the hard candy category, some brands are pushing the envelope with more unique flavor profiles. Liz Smiley, brand manager for Brach’s, points out that while fruit and mint flavors such as lemon, peppermint, and cinnamon continue to dominate, there is an opportunity to introduce more diverse and globally inspired flavors.

Perfetti Van Melle has embraced this opportunity with the launch of two new products: XXL Trio and Melody Pops. The XXL Trio is a multi-layered lollipop featuring bubblegum inside and two different flavor layers. It comes in four flavor combinations, including Cola Lemon, Strawberry Kiwi, Mango Orange, and Tutti Frutti Pineapple. Borges highlights the growing consumer demand for multi-flavor, multi-sensory experiences, stating that these features are driving growth in the non-chocolate candy category.

Melody Pops, another new addition from Perfetti Van Melle, combines candy with entertainment. This lollipop doubles as a whistle, allowing consumers to play different notes while enjoying the candy. It is available in Strawberry, Blue Raspberry, and Watermelon flavors.

Seasonal Products and Nostalgia

Seasonal sales continue to play a significant role in the hard candy market. Smiley notes that consumers still crave everyday options, but seasonal products, such as Brach’s Candy Canes and Cinnamon Imperials, drive ongoing growth. Brach’s, in particular, has found success with holiday-themed products. Last year, the company collaborated with the classic film Elf to release a series of whimsical holiday candies, including Swirly Twirly Gum Drops and Candy Cane Forest Mellowcreme Candy.

Smiley adds that the partnership with Elf was a fun way to put a new twist on Brach’s classic candy canes. Inspired by the film, the candy cane flavors included Buddy the Elf Maple Syrup, World’s Best Cup of Peppermint Hot Cocoa, and Cotton Candy Headed Ninny Muggins.

Sour Candy: A Growing Trend

Sour flavors are on the rise in the non-chocolate candy category. Borges notes that sour is the second biggest flavor in candy, with 130 new sour items introduced in 2023, generating over $140 million in sales. “We see sour lollipops growing at double the rate of regular lollipops,” Borges says.

In response to this trend, Perfetti Van Melle will be launching Chupa Chups Sour Lollipops later this year. These lollipops offer a perfect balance of sweet and sour throughout the eating experience. Unlike some sour candies that lose their punch after a few seconds, Chupa Chups Sour Lollipops maintain their sourness from start to finish. The product will be available in a mixed bag with Sour Strawberry, Sour Lemon, and Sour Green Apple flavors.

Looking Ahead: New Channels and Innovations

As the hard candy market continues to evolve, brands are finding new ways to connect with consumers. SmartSweets plans to launch its first hard candy offering on QVC in the fall of 2024. This move will allow the company to showcase its products through a new retail channel, expanding beyond traditional in-store experiences.

Borges remains optimistic about the future of the non-chocolate candy category. Despite rising costs and inflation, he believes consumers will continue to seek out innovative products that offer exciting flavors, better-for-you attributes, or a sense of nostalgia. “Regardless of the economic impact, the hard candy category is still about indulgence and fun,” Borges says.

Conclusion: The Hard Candy Market in 2024

The hard candy market has shown resilience in the face of inflation, with consumers continuing to purchase their favorite treats, albeit with a greater focus on value and health-conscious options. Brands like Perfetti Van Melle, SmartSweets, Zolli Candy, and Brach’s are leading the way by offering innovative products that cater to shifting consumer preferences, including sour flavors, nostalgic treats, and better-for-you options.

As the category continues to grow, manufacturers are finding new ways to meet consumer demands, whether through seasonal products, new flavor combinations, or alternative retail channels like QVC. Despite the challenges posed by rising costs, the hard candy market is poised for continued innovation and success, as brands tap into the evolving tastes and desires of today’s consumers.