Source: candyusa.com, July 2021
Cleveland — Confectionery continues to deliver growth in 2021, up 3.5 percent for the 52 weeks ending July 11, 2021, according to Information Resources, Inc. (IRI). While most categories around the store are still seeing elevated demand versus 2019 pre-pandemic levels, candy is one of just a few sectors experiencing sales growth besting the high demand of 2020.
And gains are still accelerating, according to Anne-Marie Roerink, of 210 Analytics, LLC. In the 13 weeks ending mid July, which roughly equates to the second quarter of 2021, confectionery sales increased 10 percent.
The biggest contributor to growth was non-chocolate, up 6.5 percent for the longer 52-week period and 16.2 percent in the second quarter. During the 13 weeks ending mid-July, every area within non-chocolate delivered growth. Novelty non-chocolate experience the highest percentage increase, up 38.3 percent, but powerhouse chewy non-chocolate continues to amaze, Roerink reports.
Representing more than half of all non-chocolate sales in the second quarter, chewy candy still grew 17 percent versus a year ago and an impressive 12.2 percent for the longer 52-week period. Other non-chocolate sectors showing double-digit growth for the past year include caramel/taffy (up 22.5 percent) and novelty (up 21.6 percent). Seasonal sales have been strong all year and Halloween candy sales are starting to grow as retailers once again have begun merchandising for the holiday well in advance, Roerink says.
While non-chocolate generated the highest percentage growth, chocolate continues to hold the largest share of sales, at nearly $16 billion for the latest 52 weeks. This represents an increase of 5.5 percent versus a year ago. When shortening up the period to the latest 13 weeks, sales increased 6.1 percent versus the second quarter of 2020.
All areas within the chocolate sector experienced strong growth, particularly larger share bags (up 8 percent versus the previous year) as consumers continue to shop less often when compared to pre-pandemic store trips. Another area of strength are chocolate gift boxes, up 13.1 percent versus a year ago as Americans re-engage with social activities, making up for the lost celebrations of 2020.
Sugarfree chocolate continues to see very high growth, up 26.2 percent in the past year and 42.5 percent in the second quarter — albeit off a small base.
Gum sales, which suffered amid social distancing, are roaring back, says Roerink. While still down 15.6 percent in the 52-week view, sales are up 11.7 percent in the second quarter compared with the second quarter of 2020, with growth led by sugarless gum.
The grocery channel, which had the strongest sales in 2020 of all trade classes, is still experiencing confectionery sales growth. Sales are up 3.9 percent versus the 52-week period and 3.6 percent in the second quarter. The drug channel, which struggled with in-store trips during the pandemic year, is making a rapid comeback. While sales are still down 3.7 percent for the 52-week period, IRI reports sales increased 8.8 percent in the second quarter of 2021 vs. 2020.
Convenience stores are benefitting from resumed commuting and summer road trips with second quarter sales up 13.4 percent and 3.6 percent for the latest 52 weeks.
The sales outlook for the remainder of 2021 for confectionery is bright, with sales accelerating to 11.4 percent during the latest four weeks, according to IRI data. While price increases are boosting the dollar sales numbers, inflation is affecting the sales results for virtually all categories across the store. With two of the four confectionery holidays still to come and strong everyday demand, it is highly likely confectionery sales will continue to pace ahead of their strong 2020 results, Roerink says.
