Dive Insight: Tracey Massey, president of Mars Chocolate North America, informed Fortune that the candy industry’s collective commitment to reducing sugar marks a historic first in the realm of health and wellness. This strategic decision is particularly astute for the confectionery sector, especially since Mintel’s 2017 Consumer Trend report highlighted a strong “backlash against sugar” among consumers. Despite growing skepticism towards sugar, consumer enthusiasm for candy remains robust, with around 5,000 new candy products launched in 2016, generating nearly an additional $1.5 billion in sales. However, there is a notable shift in consumer preferences towards low-sugar candies or those sweetened with natural alternatives like stevia and monk fruit, which is being taken seriously by manufacturers.
A survey conducted by NPR involving 102 consumer packaged goods (CPG) companies revealed that 180,000 products were reformulated last year, which is double the number from 2015. By pledging that half of their individually wrapped products will contain 200 calories or fewer by 2022 and by labeling calories on the front of their packaging, major players like Mars, Nestle, Lindt, Ferrara Candy, and Ferrero are demonstrating their commitment to providing healthy options and helping consumers make better nutritional choices. It will be intriguing to observe whether other leading candy manufacturers will follow suit or if these five companies will implement further initiatives.
Nestle, for instance, has innovated a method to restructure the sugar molecule, allowing it to utilize up to 40% less sugar in its products while maintaining sweetness. This groundbreaking technology could transform the candy industry if embraced by other brands. Nestle is set to introduce products utilizing this faster-dissolving sugar in 2018, potentially paving the way for healthier options that also incorporate ingredients like calcium citrate. As the industry evolves, it will be essential to monitor how these new developments impact consumer preferences for healthy options in the candy market.