Keeping an ear to the ground and honing in on pockets of growth can help your sweetie sales soar.
The vibrant confectionery market remains a cornerstone of sales for independent retailers, valued at £2bn and growing +4.4% in the convenience channel [Circana data to 30th November 2024]. “This growth highlights the category’s resilience as consumers continue to gravitate towards well-loved and trusted brands,” says Andy Mutton, Managing Director at Storck UK, which owns the Werther’s Original, Riesen and Toffifee brands. “This emphasises the need for retailers to prioritise a strong confectionery range with recognisable favourites that cater to diverse tastes and occasions.”
In the convenience channel, the sugar category has seen value sales exceed £665m, growing at a rate of +3.1% [ibid]. “This growth is being driven by the continued popularity of sharing formats and multipacks, which reflect evolving shopper preferences for value and convenience,” says Mutton. “As these segments flourish, retailers have an opportunity to adapt their strategies to further capitalise on this trend.”
The sugar confectionery market is seeing polarisation in performance, with premium brands and value players enjoying strong double-digit growth [ Circana All Outlets MAT data to end of November], he observes. “This trend highlights opportunities at both ends of the pricing spectrum, as consumers seek either affordable treats or premium indulgences. Brands such as Werther’s Original are ideally placed to tap into the demand for value options, offering a high-quality treat at an affordable price point.”
Sharing bags continue to dominate the sugar confectionery category, accounting for £430m in sales in convenience, growing by +6.5% in value [Circana All Outlets excl. Discounters MAT 30th November 2024]. “As consumers spend more time at home and seek affordable treats to share with family and friends, this segment remains a crucial focus for retailers,” says Mutton.
Freeze dried phenomenon
One confectionery trend you can’t fail to have noticed is the rising demand for freeze-dried sweets, which became incredibly popular last year. In fact, there had been 122 million related TikTok posts as of August 2024.
Faraz Iqbal of Linktown Local in Kirkcaldy, Fife, had initially been wary of freeze-dried sweets because he questioned their lack of labelling. “A lot of that freeze dried stuff isn’t 100% – it’s just put into a bag, all mixed up with no labelling, barcodes or traceability.”
However, that changed when retailer Amrit Singh, who runs H & Jodie’s Nisa store in Walsall in the West Midlands, began manufacturing and supplying Freezy freeze-dried sweets through his H & Jodie’s wholesale business.
Faraz made his first order of Freezy packs back in July. It promptly sold out and he has been ordering them ever since. “It’s all properly labelled,” says Faraz. “People from all over have been coming in for them.”
Racetrack Pitstop has also been riding the freeze-dried wave. Having sold plenty of Tubbees-branded packs in their stores, the firm decided to invest in equipment to make the popular confections in-house. “In life as you get older you need to be able to embrace everything and any new trend needs to be analysed and sourced if possible,” says Racetrack founder Vikas Sud.
Kervan Gida also hopped on the trend towards the end of last year with its three-strong Freezy-Crunchy range. “Using technology developed by NASA to prolong the life and reduce the weight of food eaten by astronauts in space, the sweets are first frozen, and once icy, a vacuum removes all moisture, creating a light, crispy texture that people love,” states the firm. “With the moisture removed, the flavour is intensified; there’s truly nothing else like it on the market!”
Spar was the first in the convenience channel to stock the range, which comprises Peach Rings, Watermelon, and Marshmallow Twist variants in 35g resealable pouches.
Mentos has announced that it will roll out a £1m summer media campaign later this year spanning PR, OOH social, influencers, VOD and eye-catching in-store POS. The campaign is designed to drive further awareness and engagement, ensuring that “Yes to Fresh” continues to be a compelling call to action for consumers and retailers everywhere.
Mentos Discovery single rolls delivered £1.3m in value sales in 2024 [Circana 52 w/e 28 Dec 2024], while Mentos Duo Packs are valued at an impressive £14.7m [Circana All Outlets & KWP Discounters | 52 w/e 28 Dec, 2024 | Gum], with Pure Fresh Gum alone worth £9.6m [ibid].
Healthy appetite
Another factor impacting confectionery trends is HFSS legislation, already in force in England and sure to come north of the border at some point. Baileys Chocolates claims that chocolate bars with added cereal, fruit or nuts generate sales of over £67m (Statista 2024). “This is continuing to grow, which could be down to the changing regulations on high fat, salt and sugar products,” says Alison Robson, Marketing Manager for Baileys Chocolate. “Brands are keen to develop their ranges to include products that are HFSS compliant and are higher in protein and fibre.”
In response to this, Baileys Chocolates has expanded its range to include other indulgent options and launched the Baileys Caramelised Nut Mix. The mix of roasted almonds, hazelnuts, peanuts, and cashews, combined in a caramel coating with a hint of Baileys liqueur, is high in fibre and delivers indulgence without compromise. The product’s exemption from HFSS allows the brand to merchandise Baileys Caramelised Nut Mix in a wider range of fixtures throughout stores where legislation applies.
“Consumers are still keen to enjoy these more indulgent products that sit outside of the HFSS regulation, but brands should work hard to make sure that their customers deem the product ‘worth it’,” adds Robson.
Storck agrees that retailers impacted by HFSS have an opportunity to focus on products that fall outside the scope. “Retailers can drive confectionery sales with non-HFSS products by offering popular classics such as Werther’s Original, available in sugar-free range,” suggests Mutton. “Being non-HFSS, these products can be placed anywhere in-store, allowing retailers to maximise shelf visibility and capitalise on consumer demand for healthier options from trusted brands.
Werther’s Original Sugar Free is made with real butter and fresh cream. The sugar-free range is valued at £5.1m and commands 57% of the sugar-free market share [IRI All Outlets. 52 we 02.11.24 (excl. Mints)]. Products in the range include Butter Candies, Chocolate Flavour Butter Candies and Creamy Toffee variants. “These options are perfectly positioned to meet the growing consumer demand for healthier treats,” states Mutton.
By capitalising on growth areas, retailers can ensure that sugar confectionery remains a sweet spot for sales, he adds.
Hancocks has plenty of advice on how to adapt your confectionery offer to encourage impulse sales.
“Merchandising is a key factor in triggering impulse purchases and providing customers with quick grab-and-go items,” says Head of Marketing Kathryn Hague. “Having creative and innovative displays is key for driving impulse sales. Ideally, you’ll want to have displays that are compact and space saving like our eight-bag fixture add-on. This is perfect for maximising shelf space you already have in store as it integrates with your existing displays.”
She adds: “Till point displays are also great for encouraging impulse buys as well as aisle-end displays.”
Her impulse must stocks are Warheads popping candy with an RSP of 99p per piece and American brand PEZ dispensers, which come in a range of much-loved children’s characters and have a RSP of £2. She also recommends the Bonds price-marked sweets bag, which appeals to customers because of the clearly marked affordable prices.
