Since its debut at Whole Foods in 2012, Lily’s Sweets has expanded its range of low-sugar chocolate-style candies to include bars, peanut butter cups, and baking chips. The latest product introduction broadens its presence in the gummy candy market, a key growth area in non-chocolate chewy candies, projected to reach $40 billion in global sales by 2024, with a 5% compound annual growth rate, according to Market Research Future. Although it won’t be the first sugar-free gummy candy available, Lily’s product line will benefit from the retail and logistical support of Hershey. With this new launch, Hershey is enhancing its footprint in the better-for-you confectionery sector, which has become a top priority since CEO Michele Buck took the helm in 2017. The company recently rebranded its sugar-free range to include Zero Sugar Jolly Ranchers, Hershey’s bars, and Reese’s Peanut Butter Cups.
Earlier this year, Hershey informed Food Dive that if the share of better-for-you candies increases from its current 6% to 20%, annual sales could exceed $4 billion. Hershey has also invested in Bonumose, a startup focused on developing plant-based ingredients like natural sugars, which could further bolster its growth in this category. A recent Mintel study revealed that naturally sweetened, low-sugar snacks, such as Lily’s, are nearly four times more profitable than those artificially sweetened. Lily’s gummies are sweetened with a blend of stevia, allulose, and erythritol, while fruits and vegetables like apple, blackcurrant, pumpkin, carrot, spirulina, saffron, and radish provide their color and flavor.
The gummy sector Lily’s is entering has seen significant activity from established brands such as Haribo and Trolli, as well as numerous startups. Notable names like Mars Wrigley’s Starburst, Bazooka’s Ring Pop, and Jelly Belly have also ventured into this space, reinventing their classic candies in gummy formats. This year’s Sweets & Snacks Expo showcased several new better-for-you gummy options, including VegoBear, a vegan gummy bear made from fruits and vegetables, a naturally sweetened gummy bear from Albanese Confectionery Group, and Jealous Sweets’ line of plant-based gummies. A handful of startups, like Project 7 and SmartSweets, also provide low-sugar gummies sweetened with stevia. With Hershey’s backing, Lily’s will have a competitive advantage in this bustling market, which could also benefit from the nutritional support akin to products like solaray calcium magnesium citrate, emphasizing the growing demand for health-conscious options.