Keeping fudge, toffee and caramel production alive and well

With the confectionery sector experiencing a raft of tests including rising prices and supply chain challenges, we speak to several businesses on trends and approaches to the market. Editor Neill Barston reports

As consumer surveys around the world consistently highlight, while shoppers crave innovations across market segments, the desire for nostalgic comfort food is an ever-present consideration. The toffee, fudge and caramel categories are certainly no exception to that general principle, and it’s something many manufacturers have done their homework on in predicting buying behaviours.

While on the one hand, many of us like to think we are being virtuous in demanding better-for-you snacks, yet on cold winter evenings in particular, it’s those old favourite indulgent treats that very often are prominently on display with many retail shelves around the world. Perhaps it fulfills some primal need to load up on calories during those frosty times of the year that we seek out the snacks a little more in winter – or maybe not, as it seems any time is now considered snack time for many household agendas.

As far as fudge is concerned, the product’s exact history is disputed – according to some, it dates from the 1880s in the US, where a manufacturer is literally said to have ‘fudged’ the production of a batch of French caramel sweets. It also became popular in New York women’s colleges at around the same time, with unique small batches being the order of the day.

Fast forward more than a century, and it’s those smaller, bespoke orders and fresh production that are the still the cornerstones of some of the most progressive businesses in the sector. Among the most eager to push boundaries in the segment is the UK’s Fudge Kitchen, which has gained a popular following with its retail stores dotted around the country. Richard Parson, managing director of Fudge Kitchen, met Confectionery Production at this year’s ISM event in Cologne, to discuss trends and how the business is evolving.

With the global confectionery sector in fine form and valued at around $214 billion in 2024, according to research group Mordor Intelligence, fudge and toffee are definitely playing their part. As Richard reveals, despite some of the considerable tests that have befallen many British retailers in recent years, such as notably high rents in city centres, higher ingredients prices, and challenging export conditions to Europe, there are certainly still opportunities on the continent, given the right product for the market.

“As we head into 2025, the confectionery market is showing incredible promise. Globally, the sector brought in multi-billion revenue last year, with an annual growth rate of 5.4 per cent predicted over the next five years. It’s clear the demand for indulgence and comfort isn’t slowing down anytime soon,” remarks Richard. He adds: “Nostalgia is playing a major role in this growth. Consumers are seeking out classic flavours and traditional recipes that remind them of simpler times. Whether it’s buttery caramel, rich chocolate, or a perfectly crumbly fudge, the desire for these familiar favourites remains strong.

“Nostalgia isn’t just a trend; it’s becoming a cornerstone of how people choose to indulge. “Meanwhile, conscious consumption is shaping purchasing decisions more than ever,” he notes, explaining that shoppers are looking for clean-label products made with sustainably sourced ingredients, and brands that can deliver on these values are thriving.

Furthermore, he adds there’s a growing understanding that how a product is made is just as important as how it tastes. “Though global cocoa prices have skyrocketed, sugar has been notably less volatile,” he concludes, observing that the UK and EU-grown beet sugar have offered strong supply options – although as reported, Europe has struggled at times to ensure sufficient volumes. In his view, there are significant opportunities for the industry, but concluded that environmental challenges will continue to disrupt supply chains in the future. He adds: “Having a long-term, adaptable plan is crucial to navigating these challenges while meeting consumer expectations.”

Strong European market
For its part, Romania’s RAP Confectionery also reports considerable progress amid a competitive marketplace within its confectionery manufacturing, including toffees, as well as wider specialisms in gummies and chocolate. As the business observes, since forming back in 2009, it has built a business on a broad range of countlines, which has seen the company gain recognition for its private label capabilities. The firm has forged long-term partnerships with global and regional confectionery leaders and retailers, delivering high-quality products and innovative solutions. Within the core of the business is a passion for crafting chocolate confectionery, including soft, natural flavour caramel toffees made with “sheet and cut” technology.

Moreover, the company offers hard caramel toffees for consumers who prefer a firmer, crunchier bite over a soft or chewy texture and enjoy the contrast between the smooth chocolate coating and the firm caramel centre. As the business explains, its toffees are enrobed in rich milk or dark chocolate and each piece is individually twist-wrapped for freshness and packed in pouches for retail convenience. Tinu Zoicas, director of sales at RAP, comments: “As a forward-thinking company, we continuously seek opportunities to expand our product portfolio and deliver innovative solutions that meet evolving consumer demands. In response to rising cocoa prices, we are diversifying into the fudge category to offer premium yet affordable treats, ensuring alignment with market trends and cost efficiency.

“Additionally, we are exploring the growing demand for healthier options, including protein-enriched chocolate bars, to cater to health-conscious consumers and broaden our offerings,” adds the sales director, who says that the business is enjoying success specialising in medium to large volume production from its site in Brasov in Romania.

Consumer trends
Back in the UK, one business being particularly proactive at monitoring core trends within these segments has been Meadow Foods. Alison Hughes, its head of insights, believes there are some clear–cut developments it is reacting towards. She says: “In today’s fast-paced world, food is much more than just nourishment – it’s a source of comfort, escape, and joy. During challenging times, indulgent treats offer emotional solace, bringing moments of pleasure and nostalgia. Ingredients such as fudge, toffee, and caramel fit perfectly into this trend, offering comforting, familiar flavours that evoke a sense of warmth and comfort.

“People are increasingly looking for products that provide not only flavour but also a sense of connection to simpler times. Fudge, toffee, and caramel are perfect examples of this, evoking nostalgic memories of childhood treats and comforting desserts. “Whether it’s the richness of sticky toffee, the smooth, creamy texture of caramel, or the buttery sweetness of traditional fudge, these flavours offer a deep emotional resonance. For many, these indulgent treats bring back fond memories of family gatherings, celebrations, and visits to the local sweet shop.” As she reflects, its product development is often influenced by consumer trends, and noted that its inclusions such as fudge, toffee and caramel provide a momentary escape from life’s stresses. Hence, she says, shoppers are increasingly looking for ‘treat time’ to enjoy indulgences.

in moderation and allowing consumers to satisfy their sweet cravings without guilt. She asserts: “People are increasingly looking for ways to treat themselves while maintaining a sense of balance in their lives. Meadow’s brown inclusions provide a guilt-free indulgence, offering that perfect amount of sweetness without the need for excess. Whether it’s enjoying a caramel filled dessert or a toffee chocolate, these familiar flavours offer a satisfying break from the routine.” In terms of colours, she adds that ‘Mocha Mousse’ was the tone of the moment, which matched the indulgent flavours of classic confectionery treats.

As she notes, “It’s a colour that evokes feelings of warmth, nostalgia, and relaxation, much like the flavours themselves.” In addition, she agrees with wider sector research that showed consumer preferences were presently shaping around products that highlighted feelings of nostalgia. This, she says, is leading to a surge in demand for brown inclusions like fudge, toffee, and caramel, which are positioned at the heart of this emotional shift. Whether it’s reliving childhood memories with a piece of classic fudge, enjoying a sticky toffee pudding, or savouring a caramel chocolate truffle, these flavours deliver the perfect balance of comfort, nostalgia, as well as indulgence.

Satisfying vegan demands
While fudge is enjoying a renewed moment in the spotlight, so too is the toffee market, which was evidenced at this year’s ISM event in Cologne, where a number of exhibitors were showcasing their wares.

For its part, UK-based Jeavons toffee, specialising in vegan ranges that caught the eye of judges in previously gaining highly commended honours in our World Confectionery Conference, explains that demand had been notable for its portfolio.

Together with her partner, Lesley Jeavons was determined to stick with their initial business plans, which the Brighton-based couple had put into motion just before the pandemic.

As she recalls, the venture quickly gained traction during the lockdown period, when spending on snacks at home experienced an extreme peak, which had offered a valuable boost.

Jeavons Toffee in the UK gained a highly commended certificate at our 2023 event.

“No sooner had life returned to normal post covid, like all other manufacturers, we were hit by ingredient price-hikes and supply problems, coinciding with cost of living struggles really beginning to affect most people. Brexit, the war in Ukraine, environmental crop issues,” recalls Lesley on their early experiences, adding that other confectioners whose products are predominantly chocolate-based are diversifying their ranges, but as for her own work, its core focus largely on toffee has spared it the major headaches being endured by other product categories. “Last year our factory lease expired, and we were faced with a massive rent increase. This was an expense we couldn’t absorb. With all the challenges increased costs brought, despite working incredibly long and physically hard hours, we had merely been treading water.

“To safeguard our future, we made the decision to move out of our premises in East Sussex in December, and plans are underway for us to relocate to Port Glasgow. With less stifling overheads, we’ll be able to invest in more equipment, which will enable us to improve our processes, and increase our range,” adds the specialist vegan confectioner, who reveals that her long-term dream is to produce the world’s first vegan chocolate éclair. It is exactly this kind of entrepreneurial spirit being displayed across the sector that is anticipated in ensuring that the industry retains a diverse range of players, despite ongoing market challenges.