State of Treating report unveils future growth projection for US confectionery sector
Elise Fennig, of the NCA, delivers the State of Treating report in Miami. Pic: Neill Barston
Revenues for the US confectionery sector took another key step forward, attaining sales of $54.2 billion for 2024, despite wider challenges impacting the market amid a period of economic constraints, writes Neill Barston.
However, the latest annual results emerged at the National Confectioners Association’s State of the Industry Conference in Miami, Florida, with the organisation citing projected growth over the next five years, with the sector set to be worth $70 billion in total within the next four years.
Against a period of renewed inflation in the US, the organisation noted that consumers remained concerned about the price of groceries, which has led to widespread shifts in food and beverage spending.
Despite this key factor, there were encouraging signs, as studies revealed that 98 percent of shoppers reported that they had purchased confectionery products at some point in 2024, demonstrating that they continue to leave room in their budgets for treats like chocolate and candy that enhance special moments.
Confectionery Production was on hand to report on the NCA’s Elise Fennig offering a key overview of the market, acknowledged that financial pressures on consumers has meant they “have had to continue with a balancing act” in terms of their shopping habits. She noted that this had seen a shift in sales slightly away from higher-priced premium chocolates, towards the more affordable candy end of the sector, as many people took a more cautious approach to their household budgets in the past year. (watch our exclusive event review video below).
Indeed, as the senior executive noted, there had indeed been a prominent reversal in trends from just two years ago – when in 2022/23, consumers stated their biggest factor in selecting confectioner was in fact their mood and product taste, while at present, price points were the greatest decision point.
This was reflected in the State of Treating’s results, with chocolate sales up 0.4% to $21.4 billion in value, but down in 3.3% in individual items sold, while non chocolate candy stood up 4.9% at $12.7bn (- 0.3 in units sold), while gum and mints were up 1.9% in value to $4.5 billion, though 2.2% down units.
In her concluding remarks, Elise Fennig said: “The category leapt to $54 billion in 2024, and we asked consumers if money were no object, what would change about your candy purchases – this gave us evidence that and the pullbacks that we have seen in spending have almost entirely been down to the economy and price of chocolate and candy. Almost all of the answers we had said that people would go back to buying more, and the number one thing they would do is go on an adventure and explore new types of products.”
Moreover, the State of Treating’s latest findings blended NCA consumer survey findings with syndicated data provided by Circana and Euromonitor. Shopper insights were collected using an online survey conducted in December 2024 among a national sample of 1,551 consumers between the ages of 18 and 75.
Among the core statistics emerging yesterday, was that a little more than half of confectionery sales were driven by chocolate, non-chocolate candy experienced standout results in 2024, growing by nearly $5 billion since 2019 – an increase of almost 70 percent.
Significantly, the big four candy seasons (Valentine’s Day, Easter, Halloween, and the winter holidays) accounted for 62 percent of all confectionery sales in 2024. Top reasons for people to buy chocolate and candy include seeing their favorite treats and brands, gifting, and special occasions.
Furthermore, the vast majority of consumers (85 percent) agree that it is fine to occasionally enjoy a piece of chocolate or candy, and 86 percent of parents are also on board with their children enjoying candy every once in a while. Consumers report that they are interested in different pack size options and resealable packaging to help them with portion control.
John Downs, president & CEO of the National Confectioners Association, added: “Americans are still turning to chocolate and candy as a special way to elevate their celebrations, holidays, and even ordinary days. The connection between our industry’s products and emotional well-being is undeniable, and we are meeting consumers where they want to be met with options for the moment – no matter the occasion.”
- For extended coverage of the event, see our subsequent edition of Confectionery Production magazine
