SWEET REWARDS

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While the market for non-chocolate candy has reached relative maturity, sweet spots in the industry still burst with opportunity. Retail sales of non-chocolate candies (excluding mints, breath fresheners and related products) reached $6.2 billion in 2002, up from $5.7 billion in 1998, according to a report released last December by research firm Packaged Facts, a division of Rockville, Md.-based MarketResearch-.com. Candy manufacturers looking for a better return on their investment should explore the rapidly growing novelty segment (which includes candies with tie-ins to movies like the Harry Potter series and “interactive� candies, which often have movable parts). According to the National Confectioners Association, the novelty candy category grew 8.7 percent in 2001, the sixth straight year that its growth outpaced the candy industry's. The Hispanic market also presents opportunity, since Hispanic buying power tripled in the past decade, and Latinos, it seems, have quite a sweet tooth.

CANDY COUNTER

Blacks are prime consumers of leading non-chocolate candies, especially fruit-flavored products.

PERCENT OF ADULTS WHO REGULARLY CONSUME THE TOP NON-CHOCOLATE CANDY BRANDS, BY RACE:

WHITE BLACK HISPANIC
Twizzlers 8% 6% 7%
Skittles 6% 13% 9%
Tootsie Rolls 7% 11% 7%
Jolly Ranchers 6% 13% 11%
Life Savers 6% 13% 9%
Starburst 6% 13% 8%
Payday 5% 10% 9%
Werther's Original 4% 8% —
Mentos 3% 6% —
SweeTarts 3% 7% —
— Sample size too small
Source: Simmons Market Research, fall 2002
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