Sweet sustainability in the confectionery space
Clean label demands have transformed the food industry, mandating everything from snacks to beverages be better-for-you. Fortunately, chocolate and other candies are still consumed by more than 80 percent of American adults, rising from 74 percent in 2008, according to Packaged Facts.
This Slide Show has been adapted from the “Sweet sustainability in the confectionery space” article in Food Insider Journal’s December Digital Magazine, “Sustainability in the confectionary sector.”
The sweet tooth is still strong
- According to the November 2018 “Chocolate Candy: U.S. Market Trends and Opportunities” report from Packaged Facts, chocolate and other candies are still eaten by more than 80 percent of American adults.
- This is compared to 74 percent of American adults in 2008.
- Total retail sales of U.S. chocolate candy alone reached US$23 billion in 2018, representing a compound annual growth rate (CAGR) of 2.4 percent in 2013.
Consumer products as accessible luxury
- Packaged Facts reported that while dollar sales may be up, volume sales are down, demonstrating that market growth is driven by premiumization as brands offer third-party certifications, premium ingredients and other costly enhancements.
- Usage rates are generally edging up for premium and luxury brands.
- The percentage of adults who enjoyed Ferrero Rocher, for example, doubled from 2.5 percent in 2008 to 5 percent in 2018.
The importance of clean label
“In the higher end chocolate market, a clean label has always been important and always will be.” – Sarah Feoli, founder and CEO of Rescue Chocolate
“The shift toward cleaner and perceived healthier ingredients is a movement and, in my opinion, is here to say.” – Torie Burke, co-founder and CEO of Torie & Howard
SPINS reports candy and chocolate positioned as specialty/wellness grew 8.5 percent in sales and 14 percent in volume during the 52 weeks ending Sept. 9, 2018.
Globally, Euromonitor International reported the retail value of organic confectionary has grown to reach more than $1 billion in 2017, up from $946.8 million in 2016.
Stateside, SPINS reported sales of candy (including chocolate) carrying an organic label grew 4.5 percent in the 52 weeks ending Sept. 9, 2018.
SPINS reported sales of non-GMO candy—including those carrying both ingredient and product claims—grew 13.6 percent in the past year.
Focusing on communities
- In 2017, Mars Inc. launched a plan called Sustainable in a Generation, which impacts all its brands from chocolate to chewing gum. The plan set new ambitions focused on growing in ways that are good for people, the planet and business.
- As part of that initiative, it launched Cocoa for Generations in 2018, which is backed by a $1 billion investment over 10 years and aims to have 100 percent of Mars’ cocoa responsibly sourced by 2025.
- In 2017, the company launched AdvanceMint, which allows for collaboration with mint farmers in the U.S., Canada and India.
The final frontier
- “There’s a constant tension that we confront between sustainable packaging options and price.” – Deborah Schimberg, president and CEO of Verve Inc.
- “We have spent a lot of time and energy sourcing the best packaging we could. Going forward, as the packaging industry evolves, we too will evolve our packaging, so we can maintain our level of sustainability.” – Sara Meyer, co-founder of Little Bird Kitchen
- “We think there will continue to be a lot of new products in this space, with exciting flavors, better ingredients and better packaging.” – Caron Proschan, founder and CEO of Simply Gum