The Bottom Line:
- Unit sales dipped slightly but dollar sales increased
- Low-sugar options are increasing
- Consumers are interested in variety and health benefits
When it comes to the gummies game, the field seemingly has more players than ever. What’s more, the array of products is increasingly playful, with new shapes and exotic flavors enticing sweet-toothed consumers to try. Unit sales might be down just a touch, but consumers remain interested in both traditional gummies and products with a twist, such as vegan items, gummies offering vitamins or other health-and-wellness twists, and more.
Market Data
The “non-chocolate chewy candy” category that gummies are filed under hit $5.8 billion in sales for the 12-month period ending May 23, 2023 (according to Circana OmniMarket). True, unit sales were down overall among the category’s top-performing companies (although some saw gains in units sold), but sales were up among nearly every single ranked producer, proving that despite price increases and tough times, candy consumers are still very much interested in treating themselves to gummy candy.
Haribo led the gummy pack for the 12-month period, with sale of $536.6 million (up a notable 19.6% for the year). Shoppers also were sweet on Sour Patch Kids, a Mondelēz International brand; it hit $442.4 million in sales, up 16.3% for the year. Interestingly, long-standing company Albanese was rankled slightly lower but saw one of the healthier increases for the period, up 27.6% to reach $135.6 million in sales.
Courtesy of Oomph! Sweets
Among the companies ranked as top performers in gummies, only one saw a decrease. Swedish Fish dipped just a tad, down 0.6% in dollar sales; however, $125.3 million in sales is nothing to sneeze at. Private-label sales also decreased, dropping by 6.5% over the period to land at $250.4 million in sales.
Looking back
When shopping for gummies, consumers increasingly have looked for a balance of indulgence, wellness benefits, and quality. Michael Lewis, founder and general manager of Oomph! Sweets, says his companies have resonated with such shoppers.
“Better-for-you confection is growing and we’re proud to have had a strong entrance into the category with product lines people are loving,” he notes. “With more options to choose from than ever, standing out with quality products is incredibly important, so innovation and reevaluation are key. We’ve made tweaks to packaging, formulations, and formats to better meet our customers’ needs.”
Eliza Jahn, head of marketing, Katjes USA, notes that the cost of doing business has been high on the list of issues impacting gummy producers, while evolving consumer interests have provided a mix of challenge and opportunity.
Courtesy of Katjes
“A noticeable challenge has been inflation, which has led to higher prices for raw materials and ultimately, higher prices for consumers; this has created a new level of price sensitivity,” she remarks. “However, at the same time there has also been a growing demand for higher quality products and sustainable options and we see a shift in consumer preferences towards better-for-you and better-for-the-planet options and a desire for more natural ingredients.”
Dana Rodio, director of brand strategy, Nassau Candy, says the past 12 months have been challenging for gummy companies thanks in part to supply chain headaches. However, she says, things are looking up.
Courtesy of Katjes
“In-stock rates, which had been a challenge in previous years due to supply chain issues, continue to greatly improve,” she says. “Fortunately, we’re in the unique position of being a manufacturer, importer, and distributor. These significant supply chain advantages have enabled Nassau Candy to have the leading fulfillment rate and most diverse assortment in our categories.”
Courtesy of Nassau Candy
Megan Gaustad, director of brand and marketing with Gummi Pop Surprise, says consumers have enjoyed the explosion in the categorical variety and are hungry for more.
“The consumer has seen many different gummies over the years; they are looking for a dynamic treat that elevates the flavor profile and level of fun! It really has evolved in a drastic way,” she comments. “The consumer used to be pleased with just a single flavor. Now, they are looking for an explosion of flavors in their mouth with the best of the best gummies.”
Social media has been a useful tool for producers looking to connect with candy consumers, and for fans of gummy candy to share their love for the treats.
“Consumers are increasingly interested in products that offer fun, Instagrammable experiences that they can put their own twists on and share digitally or in person with their friends,” says Molly Jacobson, director of business development at Frankford Candy.
“For example, we’re seeing consumers create and share their own charcuterie boards made out of our Gummy Lunchables—a win-win for everyone.”
Looking Forward
Candy companies do not expect inflation, supply chain challenges, labor woes, or other problems of the past to fade away. Jacobson says producers should remain informed and flexible in the future.
“Inflation will certainly pose a challenge to growth, as consumers tighten their spending. Confections has historically remained recession-proof, but history is a thing of the past, and we’ll be paying close attention to spending habits over the next year or so and what adjustments will need to be made to our product line as a result,” Jacobson says.
However, despite ongoing challenges, Rodio predicts the future for gummies is bright.
Courtesy of Gummi Pop Surprise
“Since we eat with our eyes first, expect to see the 3D category to keep growing,” she muses. In addition to the gummies themselves being a focus in trends, we also see how they’re packaged playing an impact on purchases. More and more consumers are searching for products with sustainable packaging. As such we’re working on changing our brands over to sustainable packaging, and are on the lookout to distribute products from vendors implementing sustainable packaging.”
Going forward, Lewis advises, gummy producers should keep in mind that consumers are eyeing labels and taking note of ingredient lists.
“Today’s consumers won’t fall for clever marketing that isn’t backed up by quality. They’re diligently looking at labels and have high expectations; if they don’t like what they see (clean, natural ingredients), they’ll move on,” he says.
Courtesy of Gummi Pop Surprise
Opportunities abound for gummy makers that provide consumers with new items, especially those with health and wellness benefits.
“Innovations in the last several years have really raised the bar, with better-for-you ingredients, functional benefits, and low-sugar options continuing to be in high demand,” Lewis says.
Gummy consumers aren’t only interested in benefiting themselves, Jahn says—they’re also concerned about helping the planet.
Courtesy of Frankford
“The trend to consume more consciously will continue to grow,” she says. “Awareness about the impact purchase decisions have on the planet, adds a layer of thoughtfulness to consumer habits, who won’t put up with palm oil, animal by-products or low quality ingredients in their products forever. With better options becoming more readily available and integrating seamlessly into mainstream grocery stores and candy aisles, consumers face an easy chance for a better choice.”
Gaustad comments that as long as gummy producers stay on top of consumer preferences and deliver on what piques their interest, their chances of success will stay high.
Courtesy of Frankford
“The biggest challenge is to keep on consumer demand. Times have changed and so have the consumer. They are not only looking for a unique treat, but an amazing experience,” she says.
Finally, Rodio says gummies are a fun category—producers that offer a playful assortment of options can attract consumers looking for variety.
“That’s the fun of gummies—there’s a lot you can do with shapes, sizes, and colors so we’re always looking to experiment,” she says.
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