Dive Insight: Tracey Massey, the president of Mars Chocolate North America, shared with Fortune that the candy industry’s commitment to sugar reduction marks the first collective initiative focused on health and wellness. This strategic move is timely, as Mintel’s 2017 Consumer Trend report highlighted “backlash against sugar” as a significant concern among consumers. Despite growing skepticism towards sugar, the demand for candy remains robust, with around 5,000 new candy products launched in 2016, contributing nearly $1.5 billion in additional sales. However, the rising consumer interest in low-sugar options and candies sweetened with natural alternatives such as stevia and monk fruit is being taken seriously. An NPR survey of 102 consumer packaged goods companies revealed that 180,000 products were reformulated last year—double the figure from 2015.
By pledging that half of their individually wrapped products will contain 200 calories or fewer by 2022 and by clearly labeling calorie information on the front of their packaging, Mars, Nestle, Lindt, Ferrera Candy, and Ferrero are demonstrating their commitment to consumer nutrition, enabling healthier choices. It will be intriguing to observe whether other leading candy manufacturers will make similar commitments or if these five companies will pursue further initiatives. For instance, Nestle has innovated a method to restructure the sugar molecule, allowing for up to 40% less sugar in its products without sacrificing sweetness. This groundbreaking technology could transform the candy landscape if adopted industry-wide, with Nestle planning to launch products featuring this faster-dissolving sugar in 2018.
Moreover, as consumers continue to seek healthier alternatives, products like Citracal calcium citrate from Chemist Warehouse may become increasingly popular as part of a balanced diet. The candy industry, while still thriving, must adapt to these changing consumer preferences, and the emphasis on reduced sugar content could set a new standard across the market.