Confectionery: How retail media and shopper behavior are shaping candy & snack sales
- InsightTrendsWorld
- 23 hours ago
- 16 min read
Why it is the topic trending:
Despite inflation, consumers continue to indulge in snacks and candy: This highlights a resilient consumer behavior in the face of economic pressures.
Impulse purchasing and comfort seeking drive sales: The article points to emotional factors influencing buying decisions in this category.
Importance of online and in-store discovery: Consumers are finding new favorites through various retail channels.
Retail media's growing influence on shopper behavior: The article explores how retailers' own advertising platforms are shaping consumer choices.
Shifting purchasing patterns across different retail channels: Consumers are buying specific snack types at different store formats.
Understanding consumer preferences for 'healthy' snacks: The definition and drivers of healthier snack choices are discussed.
The contrasting performance of specific snack and candy items: Some products are bucking the overall trend of declining unit sales.
Overview: Despite inflation leading to price increases and a slight dip in unit sales for snacks and candy in Q1 2025, consumers are still indulging, driven by impulse purchases, comfort seeking, and discovery through both online and physical retail channels. The article explores the influence of retail media networks on shopper behavior, the different channels consumers are using to buy snacks, and the definition of 'healthy' snacks across different demographics. While overall unit sales have declined slightly, certain products like frozen specialty desserts and Nerds Gummy Clusters are experiencing significant growth. The article highlights the continued importance of taste, value, and promotions in consumer choices within the snack and candy categories.
Detailed findings:
Inflation Impact: Unit prices for major snack and candy categories rose by an average of 14% YoY in Q1 2025, while dollar sales increased by 12%, but unit sales declined by 2%. Candy followed a similar pattern.
Outperforming Products: Frozen specialty desserts surged 45% YoY, while marshmallows, lollipops, and candy corn also saw significant increases. Nerds Gummy Clusters experienced a remarkable 125% growth in sales and 75% increase in unit sales YTD.
Shoppers Still Treat Themselves: Half of shoppers admit to splurging on treats, and 68% consider snacks as comfort foods.
Impulse Buying: The primary influence on snack and candy purchases is visual appeal and craving. In-store discovery is the leading source for purchase ideas and impulse buys.
Who is Snacking: 67% of shoppers snack daily, with higher percentages among males (69%), Millennials (71%), households with kids (71%), and Hispanics (70%). 98% of US households purchased salty snacks in the past year.
Favorite Snacks and Candy: Chocolate candy bars, candy-coated chocolate, chocolate-covered gummies, salty snacks, fresh fruit, and baked goods remain popular. Millennials prefer healthier options like granola/cereal bars and protein/nutritional bars.
Key Purchase Factors: Taste is the most important factor for snack selection, followed by value, promotions, availability, and family preferences. In candy, taste, high-quality ingredients, favorite brands, and trusted names are prioritized.
Defining Healthy Snacks: Consumers define healthy snacks as products with less sugar, clean ingredients, natural/organic sourcing, high protein, and lower fat. Millennials prioritize clean labels and protein, while Boomers focus on reduced sugar, fat, and calories. Fruit, yogurt, and nuts lead in natural/organic snacks.
Retail Media Networks (RMNs): RMNs are digital platforms used by retailers to allow brands to advertise directly to shoppers using retailer-owned channels and first-party data for targeted advertising.
Retailers as Discovery Source: Consumers are increasingly using retailer websites to discover products rather than directly searching on Google.
Digital vs. Physical Retail Media: They play different but complementary roles in the shopper journey.
Channel Preferences: Healthier snacks like pretzels and fruit are mainly bought at grocery stores, while beef jerky, granola bars, and nuts are often purchased at club stores. Dollar stores dominate for candy bars and lollipops.
Shopping Across Channels: Consumers shop across various channels (grocery, mass, club, dollar, convenience, drug).
Key success factors of product (trend):
Taste and Craving Appeal: Products that look appealing and trigger cravings are key drivers of impulse purchases.
Comfort and Emotional Connection: Snacks and candy that provide comfort or a sense of indulgence resonate with consumers.
Value and Promotions: Offering good value for money and attractive promotions influences purchasing decisions.
Availability and Accessibility: Ensuring products are available across various channels and easily accessible in-store is crucial.
Strong Branding and Trusted Names: Favorite brands and trusted names in the candy category hold significant weight.
Innovation and Novelty: Standout products like Nerds Gummy Clusters demonstrate the impact of unique offerings.
Targeted Retail Media Strategies: Effective use of retail media networks to reach specific shopper segments is becoming increasingly important.
Understanding Channel-Specific Preferences: Tailoring product placement and promotions to the preferred channels for different snack types.
Key Takeaway: Despite inflation impacting unit sales, the candy and snack market remains resilient due to impulse purchasing and the emotional connection consumers have with these treats. Retail media is playing an increasingly significant role in discovery, and understanding channel-specific shopper behavior is crucial for brands.
Main trend: The main trend in the candy and snack market is the Resilient Indulgence Driven by Impulse and Emotional Connection, where consumers continue to purchase treats despite economic pressures, with retail media and channel-specific preferences significantly shaping sales.
Description of the trend (please name it): Resilient Indulgence Driven by Impulse and Emotional Connection: This trend describes the sustained consumer demand for candy and snacks despite inflationary pressures. This demand is primarily fueled by impulse purchases triggered by visual appeal and cravings, as well as the emotional comfort and sense of treat these products provide. Retail media networks are becoming key platforms for discovery, and brands need to understand the nuances of where consumers shop for different types of snacks to effectively reach them.
What is consumer motivation:
Seeking Comfort and Emotional Well-being: A significant motivation for purchasing snacks and candy is the desire for comfort foods that help them feel better.
Treating Themselves and Family: Despite budget constraints, consumers are willing to splurge on certain items, especially snacks and candy, as a treat.
Responding to Visual Appeal and Cravings: The immediate visual appeal of a snack or candy and the resulting craving are strong drivers of impulse purchases.
Experiencing Discovery and Novelty: Consumers enjoy discovering new and interesting snack and candy options both in-store and online.
Satisfying Taste Preferences and Cravings: Taste remains the most crucial factor in snack and candy selection.
Seeking Good Value and Promotions: Consumers are mindful of their spending and are attracted to products that offer good value or are on promotion.
Fulfilling Family Preferences: For households with children, family preferences play a significant role in snack and candy purchases.
What is driving trend:
Inflation Leading to Price Increases: While prices have risen, the underlying desire for indulgence persists.
The Power of Impulse Buying: The inherent nature of snack and candy purchases often involves spontaneous decisions driven by immediate desires.
Effective In-Store Merchandising: Retailers are capitalizing on impulse behavior through strategic product placement and appealing displays.
Growth of Retail Media Networks: Retailers' advertising platforms are influencing consumer discovery and purchasing decisions.
Snacking Culture: A significant portion of the population snacks daily, creating consistent demand.
Variety of Retail Channels: Consumers have numerous options for purchasing snacks and candy, catering to different needs and preferences.
Demand for Comfort Foods: In times of uncertainty or stress, consumers often turn to familiar and comforting foods like snacks and candy.
What is motivation beyond the trend:
Seeking Moments of Joy and Pleasure: Beyond basic needs, snacks and candy often provide small moments of enjoyment and pleasure in daily life.
Social and Cultural Norms: Snacking is often ingrained in social situations and cultural practices.
Habitual Consumption: For many, snacking is a regular habit integrated into their daily routines.
Reward and Self-Indulgence: Snacks and candy can serve as a small reward or a way to indulge oneself.
Managing Energy Levels: Some snacks are consumed to provide a quick energy boost between meals.
Description of consumers article is referring to:
Who are they: General population in the US, with specific emphasis on daily snackers, Millennials, households with kids, and Hispanics who show higher snacking frequencies.
What kind of products they like: A wide variety including chocolate candy, gummies, salty snacks (chips, pretzels), fresh fruit, baked goods, granola/cereal bars, protein/nutritional bars, frozen desserts, marshmallows, and lollipops.
What is their age?: Spans across different age groups, with a specific focus on Millennials (25-40 approx.) who snack frequently and have preferences for healthier options.
What is their gender?: Slightly skewed towards males who show a higher percentage of daily snacking (69%) compared to females.
What is their income?: The article suggests a broad income range as it discusses both indulgence despite inflation and the importance of value and promotions. Aspirational to established income levels are likely included.
What is their lifestyle: Varied, but a significant portion lead busy lives where snacking serves as a convenient and enjoyable part of their daily routine. Households with kids are also a key segment with high snacking frequency.
What are their category article is referring shopping preferences: They shop across various channels including grocery, mass, club, dollar, convenience, and drug stores. In-store is a primary location for discovery and impulse buys, and online shopping through retailer websites is also significant.
Are they low, occasional or frequent category shoppers: Frequent, as 67% snack daily, indicating a high engagement with the candy and snack category.
What are their general shopping preferences-how they shop products, shopping motivations: They are driven by taste and cravings, influenced by visual appeal and promotions. They seek good value and consider family preferences. Increasingly, they are discovering products through retailer media networks and are mindful of health aspects like sugar content and ingredients, with preferences varying by age group.
Conclusions: Despite economic headwinds, the candy and snack market continues to thrive due to consumers' desire for indulgence and comfort. Impulse purchasing remains a key driver, with in-store discovery playing a significant role. Retail media networks are emerging as powerful tools for brands to connect with shoppers. Understanding the nuances of shopper behavior across different retail channels and the varying definitions of 'healthy' snacks across demographics are crucial for success in this dynamic market.
Implications for brands:
Focus on Visual Appeal and Packaging: Bright, colorful, and attractive packaging is crucial for capturing attention and driving impulse purchases.
Leverage In-Store Merchandising: Strategic product placement and engaging displays in physical stores are essential for discovery and impulse buys.
Invest in Retail Media Networks: Utilize retailer-owned digital platforms to advertise directly to targeted shopper segments based on their preferences and purchase history.
Offer Value and Promotions: Providing competitive pricing and attractive promotions remains a key driver of consumer choice.
Understand Channel-Specific Preferences: Tailor product offerings and marketing strategies to the specific types of snacks consumers prefer to buy at different retail channels (grocery, club, dollar, etc.).
Innovate with Flavor and Format: Continuously introduce new and exciting flavors and product formats to capture consumer interest and drive discovery.
Address Health Trends: Offer options that cater to different definitions of 'healthy' snacks, such as reduced sugar, clean ingredients, or high protein, targeting specific demographics like Millennials and Boomers.
Build Strong Brand Recognition: In the competitive candy market, leveraging favorite and trusted brand names is crucial for consumer loyalty.
Implication for society:
Continued Consumption of Indulgent Foods: Despite health concerns, the societal trend of indulging in snacks and candy persists.
Influence of Marketing and Retail Strategies: Retail media and in-store tactics can significantly shape consumer food choices.
Growing Awareness of 'Healthy' Snacking: Consumers are increasingly seeking out and defining what constitutes a healthier snack option, potentially leading to demand for more nutritious choices.
Potential for Increased Spending on Treats: The willingness to splurge on snacks and candy could indicate a societal value placed on these moments of indulgence.
Implications for consumers:
Wider Variety of Snack and Candy Options: Consumers can expect a continuous stream of new products and flavors driven by innovation.
More Targeted Advertising: Retail media networks will lead to more personalized and relevant advertising based on individual preferences.
Continued Focus on Value and Promotions: Consumers can likely continue to benefit from competitive pricing and frequent promotional offers.
Greater Availability of 'Healthy' Snack Choices: Brands are responding to the demand for healthier options, providing consumers with more choices.
Potential for Impulse Spending: The ease of discovery and appealing in-store displays may lead to increased impulse purchases.
Need for Discernment: Consumers may need to navigate a complex landscape of options, considering factors like taste, value, and health attributes.
Implication for Future:
Further Growth of Retail Media: Retail media networks will likely become even more sophisticated and influential in shaping consumer purchasing behavior.
Continued Emphasis on Indulgence and Comfort: The emotional connection to snacks and candy will likely remain a strong driver of sales.
Evolving Definitions of 'Healthy' Snacks: Consumer understanding and preferences for healthier snacking options will continue to develop.
Integration of Online and Offline Shopping: Brands will need to create seamless shopping experiences across physical and digital channels.
Personalized Product Recommendations: Retail media and data analytics could lead to more tailored product recommendations for individual consumers.
Consumer Trend (name, detailed description): Conscious Indulgence: While consumers are still indulging in snacks and candy for comfort and pleasure, there's a growing awareness and demand for options that align with their health values, leading to increased interest in 'healthier' alternatives and more mindful choices within the treat category.
Consumer Sub Trend (name, detailed description): Channel-Specific Snacking: Consumers are increasingly demonstrating specific preferences for where they purchase different types of snacks, optimizing their shopping trips based on product type and retail channel (e.g., grocery for healthy snacks, dollar stores for candy bars).
Big Social Trend (name, detailed description): The Blurring Lines of Retail and Advertising: The rise of retail media networks exemplifies the growing convergence of retail and advertising, where retailers are becoming significant advertising platforms, influencing consumer discovery and purchase decisions directly within their own ecosystems.
Worldwide Social Trend (name, detailed description): Global Snacking Culture: Snacking has become a prevalent eating pattern globally, transcending cultural boundaries. While specific preferences vary, the tendency to consume small, often indulgent, foods between meals is a widespread behavior influencing the food industry worldwide.
Social Drive (name, detailed description): The Pursuit of Instant Gratification and Comfort: In today's fast-paced and often stressful world, there's a strong social drive towards seeking instant gratification and emotional comfort through easily accessible and enjoyable options like snacks and candy.
Learnings for brands to use in 2025:
Master the Art of Impulse Marketing: Leverage visually appealing packaging and strategic in-store placement to capture impulse purchases.
Become Savvy with Retail Media: Develop effective advertising strategies within retailer media networks to enhance product discovery and drive sales.
Cater to the 'Healthy' Snack Seeker: Offer a diverse range of options that align with various consumer definitions of healthy snacks, highlighting key attributes like lower sugar, clean ingredients, and higher protein.
Understand Your Target Audience's Channel Preferences: Optimize product availability and promotions based on where your specific consumer segments prefer to shop for different types of snacks.
Embrace Innovation and Novelty: Continuously introduce new flavors, formats, and product concepts to keep consumers engaged and excited.
Highlight Value and Run Strategic Promotions: In an inflationary environment, offering good value and running targeted promotions can significantly influence purchase decisions.
Leverage the Power of Nostalgia and Comfort: Tap into familiar flavors and formats that evoke feelings of comfort and nostalgia.
Build Strong Relationships with Retail Partners: Collaborate effectively with retailers to optimize in-store presence and leverage their media platforms.
Strategy Recommendations for brands to follow in 2025:
Develop Data-Driven Retail Media Strategies: Utilize retailer data to create highly targeted and effective advertising campaigns on RMNs.
Optimize In-Store Execution: Invest in compelling displays and strategic shelf placement to maximize visibility and drive impulse purchases.
Innovate with Healthier Options Without Sacrificing Taste: Focus on creating healthier snack and candy alternatives that still deliver on flavor and indulgence.
Implement Channel-Specific Product and Promotion Strategies: Tailor your offerings and promotions to the preferences of shoppers at different retail channels.
Invest in Consumer Insights: Continuously monitor shopper behavior, preferences, and trends to inform product development and marketing strategies.
Strengthen Online Presence and E-Commerce Capabilities: Ensure a seamless online shopping experience and leverage retailer websites for product discovery and purchase.
Build Strong Brand Equity: Reinforce brand messaging around trust, quality, and the emotional connection consumers have with snacks and candy.
Foster Agility and Adaptability: The snack and candy market is dynamic; brands should be prepared to quickly adapt to evolving consumer trends and preferences.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it. In 2025, the candy and snack market will continue to be characterized by resilient indulgence fueled by impulse and emotion, requiring brands and companies to strategically leverage retail media, optimize in-store presence, and cater to evolving consumer preferences for both indulgence and health across various retail channels to effectively drive sales and growth.
Final Note:
Core Trend: Resilient Indulgence - Consumers continue to purchase snacks and candy despite inflation, driven by impulse and emotional connection.
Core Strategy: Omnichannel Engagement with a Focus on Impulse and Retail Media - Brands should optimize both in-store and online presence, with a strong focus on strategies that drive impulse purchases and effective utilization of retail media networks.
Core Industry Trend: The Growing Power of Retail Media - Retailer-owned advertising platforms are becoming increasingly influential in shaping consumer discovery and purchase decisions in the candy and snack market.
Core Consumer Motivation: Seeking Comfort, Pleasure, and Value - Consumers are primarily motivated by the desire for comfort, pleasure, and good value when choosing snacks and candy, even amidst economic pressures.
Final Conclusion,: The candy and snack market in 2025 presents a landscape where consumers, while facing inflationary pressures, are still driven by the desire for indulgence and the emotional comfort these products provide. The power of impulse buying, coupled with the increasing influence of retail media networks, signifies a need for brands to adopt agile and data-driven strategies. Understanding the nuances of channel preferences and catering to evolving health trends, without compromising on taste and enjoyment, will be crucial for brands to not only maintain but also grow their market share in the coming year. The ability to effectively tap into the core consumer motivations of comfort, pleasure, and value across a diverse range of retail environments will ultimately determine success in the dynamic candy and snack industry.
Core Trend Detailed: The core trend of Resilient Indulgence Driven by Impulse and Emotional Connection highlights the enduring appeal of snacks and candy for consumers. Despite rising prices and economic uncertainties, these categories are not experiencing a significant drop in demand. This resilience is largely attributed to the fact that snacks and candy often serve as affordable luxuries, offering moments of comfort, pleasure, and escape. The purchase decisions are frequently spontaneous, influenced by immediate cravings and visual cues at the point of sale, whether online or in-store. Furthermore, the emotional connection consumers have with these treats, often tied to nostalgia, personal rewards, or family traditions, contributes significantly to their continued purchase.
Key Characteristics of the Core trend:
Price Inelasticity (to a Degree): While inflation impacts unit sales slightly, consumers are still willing to purchase snacks and candy, indicating a degree of price inelasticity due to their perceived value as affordable indulgences.
Strong Impulse Purchase Behavior: A significant portion of sales is driven by unplanned purchases triggered by visual appeal, placement, and cravings.
Emotional Comfort and Reward: Snacks and candy often serve as comfort foods or a small reward, fulfilling emotional needs.
Wide Demographic Appeal: Snacking is a widespread behavior across various age groups, genders, and household types.
Omnipresence Across Retail Channels: Snacks and candy are available in a vast array of retail formats, making them easily accessible to consumers.
Influence of Promotions and Value: While indulgence is a key driver, consumers are still attentive to value and responsive to promotions.
Constant Innovation and Variety: The market is characterized by continuous introductions of new flavors, formats, and products to maintain consumer interest.
Market and Cultural Signals Supporting the Trend:
High Snacking Frequency: The fact that a majority of consumers snack daily indicates a deeply ingrained habit and consistent demand.
Retailer Focus on Impulse Zones: Retailers strategically place snacks and candy in high-traffic areas near checkout to encourage unplanned purchases.
Growth of Retail Media Advertising: Retailers are actively promoting snack and candy brands on their digital platforms, indicating a significant investment in this category.
Social Media Influence on Food Trends: Social platforms often feature trending snacks and candies, driving awareness and desire among consumers.
Cultural Norms Around Treats and Celebrations: Snacks and candy are often associated with holidays, celebrations, and everyday treats, reinforcing their cultural significance.
Consumer Perception of Snacks and Candy as Affordable Luxuries: Even during economic downturns, these items are often seen as a relatively inexpensive way to indulge.
Continuous Product Development and Marketing: Brands consistently invest in creating new and appealing products and marketing campaigns to sustain consumer interest.
How the Trend Is Changing Consumer Behavior:
Increased Reliance on Retailer Platforms for Discovery: Consumers are now turning to retailer websites and apps as key sources for discovering new snack and candy products.
More Strategic Channel Selection: Consumers are becoming more deliberate in choosing where they buy specific types of snacks based on factors like health attributes or convenience.
Heightened Awareness of Promotions and Value: In an inflationary environment, consumers are likely paying closer attention to discounts and deals on their favorite snacks and candies.
Growing Demand for Healthier Alternatives: While indulgence remains key, consumers are also increasingly seeking out snack and candy options that align with their health and wellness goals.
Potential for Increased Impulse Purchases Online: As e-commerce platforms enhance their visual merchandising and recommendation algorithms, impulse purchases may extend beyond physical stores.
Greater Influence of Online Content: Reviews and recommendations from other consumers online are likely playing a growing role in influencing snack and candy choices.
Experimentation with New Flavors and Brands: The continuous influx of new products encourages consumers to try different options and explore new favorites.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, bullets):
For Brands and CPGs:
Must invest in eye-catching packaging and compelling in-store displays to capitalize on impulse purchases.
Need to develop strong retail media strategies to effectively reach consumers on retailer platforms.
Should innovate with a variety of options, including healthier alternatives, to cater to diverse consumer needs.
Should focus on delivering both taste and value to remain competitive in an inflationary market.
Must understand channel-specific shopping behaviors to optimize product placement and promotions.
Need to continuously monitor and respond to evolving consumer preferences and trends.
For Retailers:
Should optimize store layouts to maximize impulse purchases in high-traffic areas.
Need to develop robust and effective retail media networks to generate advertising revenue and enhance product discovery.
Should curate a diverse product assortment that caters to both indulgent and health-conscious consumers.
Can leverage data to understand channel-specific preferences and tailor product offerings accordingly.
Should create engaging online shopping experiences that facilitate product discovery and potentially drive impulse purchases in the digital space.
Can partner with brands to create compelling in-store and online promotions to drive sales.
For Consumers:
Will continue to have a wide array of snack and candy options to choose from.
May be increasingly influenced by targeted advertising on retailer platforms.
Can expect to see ongoing promotions and value offers from brands and retailers.
Will have more options for healthier snacks as brands respond to this growing demand.
May find it easier to discover new products through online retailer platforms.
Should be mindful of the potential for increased impulse spending due to effective merchandising and advertising.
Can leverage the convenience of various retail channels to purchase their preferred snacks and candies.
Strategic Forecast:
Retail Media Will Become Even More Integrated: Expect to see further development and sophistication of retail media networks, blurring the lines between advertising and the shopping experience.
Personalized Recommendations Will Increase: Retailers and brands will likely leverage data analytics to provide more personalized product recommendations to consumers.
The Demand for 'Better-For-You' Treats Will Grow: The trend towards healthier snacking options will likely continue to gain momentum, with more innovative products emerging in this space.
E-Commerce for Snacks and Candy Will Expand: Online purchasing of snacks and candy is expected to grow as consumers seek convenience and wider product selections.
Sustainability and Ethical Sourcing May Become More Important: While not a primary focus of this article, broader consumer trends around sustainability could increasingly influence the snack and candy market in the future.
Final Thought (summary): The candy and snack market in 2025 remains a realm of resilient indulgence, where impulse and emotional connections drive consumer behavior amidst inflationary pressures. Retail media's ascendance as a discovery platform, coupled with nuanced channel-specific shopping patterns, underscores the need for brands to be agile, data-driven, and keenly attuned to the evolving desires of a consumer seeking both comfort and value in their treats.
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