INDUSTRY NEWS AND UPDATES

Chocolate continues to lead the confectionery market, benefiting from its long-standing reputation as an affordable indulgence. However, while dollar sales remain strong, declining unit and volume sales suggest changing consumer behaviours could be reshaping the category.

Rising cocoa costs and inflation have pushed chocolate prices higher in recent years, helping maintain value growth despite consumers purchasing fewer products overall. This trend contrasts with several non-chocolate confectionery segments, which are not only increasing in value but also recording growth in units and volume.

Gummies, seasonal products and novelty sweets are among the categories gaining momentum, driven by flavour innovation, texture experimentation and consumer demand for new experiences. Younger shoppers, particularly Gen Z and Millennials, are showing strong interest in sour flavours, unexpected combinations and interactive confectionery formats that deliver an element of surprise.

Texture is also becoming a key driver of innovation. Products featuring popping, fizzy or layered sensory experiences are attracting attention, highlighting the growing importance of multisensory enjoyment in confectionery purchasing decisions.

At the same time, chocolate flavours are expanding beyond traditional confectionery into categories such as snack bars, popcorn and yoghurt-based products. This broadens chocolate's reach but may also reduce demand for conventional chocolate formats.

Smaller, snack-sized chocolate products are proving more resilient, reflecting consumers' desire to balance indulgence with tighter budgets and portion control. These formats offer brands an opportunity to retain consumer loyalty while adapting to changing purchasing habits.

Looking ahead, chocolate remains a dominant force within confectionery, but future growth may depend on more than price increases alone. Manufacturers are likely to focus increasingly on format innovation, portion flexibility and experiences that resonate with younger consumers as competition from non-chocolate confectionery continues to intensify.

Read more on Confectionery News.