Whether to lift a mood or satisfy a craving, Canadians are continuing to indulge in confectionery
At a time when Canadian consumers are feeling the pinch with rising food costs, they’re still finding room in their budgets for sweet indulgences.
The latest research from Innova Market Insights shows confectionery launches in Canada have surpassed 2019 levels (100 launches), rebounding from a drop in 2020 (68) and 2021 (63) to 92 launches in 2022, with 105 new products in 2023. Unwrapped and wrapped chocolate pieces are leading the pack, but mixed candy assortments were the fastest growing subcategory in confectionery launches last year. On top of tasting good, the data shows that 42% of Canadians said they are likely to eat sugar confectionery “to make myself happy.”
There’s no disputing confections, especially chocolate, are associated with mental well-being, says Camilla Jenkins, senior director, insights and analytics at Mondelēz International. In the 2023 Mondelēz State of Snacking report, 81% of Canadians agreed chocolate was “good for the soul” and 74% said it had the ability to “turn an ordinary moment into something extraordinary.” Jenkins points to a clear connection between confectionery snacks and feelings of joy, comfort and nostalgia. “Since most confectionery items are smaller serving indulgences when compared to other luxuries, they tend to not impact consumers’ overall budget,” she adds.
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As snacking becomes more and more prevalent, it’s not surprising the confectionery category is holding strong, says Joel Gregoire, associate director, food and drink at Mintel. “A hybrid work model in general means more flexible behaviour when people are working at home, so they can nosh throughout the day,” he says. “For industries like confectionery, that can be a real benefit, especially in the afternoon when people are looking for an energy boost … and cravings come into the mix.”
Data from Ipsos shows, from a generational perspective, growth in candy is being driven by generation alpha (10 years old or younger) and millennials with kids, along with 19- to 26-year-olds (a section of the cohort Ipsos labels “leading gen Zs”). “We also see strong development for both chocolate and candy among newcomer Canadians (those living in the country for less than three years), so understanding the multicultural consumer dynamic is important,” says Jenny Thompson, director of market strategy and understanding at Ipsos Canada. “Among Canadian newcomers, candy consumption is highest among gen alpha and leading gen Z, which is notably different versus total population, where candy consumption is highest among millennials.”
As Canadians turn to confectionery for mental uplift, grazing, comfort cravings, personalization and nostalgia, it points to a need for packaging formats that are “grazable, and perhaps to some degree, customizable,” says Thompson, noting “throwbacks” that spur nostalgia may also be of interest, especially among millennials with kids.
Shawn Fero, country manager Canada at Haribo, says his company’s goal is to bring joy to children and adults through sharable, fun-shaped fruit gummies that are vibrantly coloured (without artificial ingredients), bouncy in texture and come in “mouth-watering” flavours. With a mandate to make their products accessible to all Canadians, the company launched Haribo Roulette, a tube of fruit gummies that sells for under $1, as well as new flavour profiles such as Tropifrutti, which appeals to preferences for exotic tastes such as pomegranate and passion fruit.
“While the popular flavours of the past remain popular flavours today, we are seeing a consumer desire for new flavour profiles delivered to them in a fun way, as well as desire for the flavours they already love offered to them in new and exciting formats,” says Fero.
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Mars Wrigley Canada is also appealing to key confectionery trends for indulgent flavours with the launch of products such as Skittles Sour Gummies and M&M’s Peanut Butter Minis. Chewing gum, too, is making a comeback with double-digit growth over the last three years, says the company’s marketing director Patrick Zeng, noting that indulgent, intense flavours are trending in gum as well.
As more than half of confectionery sales are sold on impulse and can be key basket builders, Zeng advises grocers to continue putting items in high-traffic checkout areas, standalone displays and endcaps where they’re instantly visible to consumers. He also points to high association areas to prompt impulse purchases, such as placing M&Ms near the ice cream section or in baking aisles.
Teresa Spinelli, owner of five Italian Centre Shops in Alberta, says she’s seen a steady growth in confectionery with customers seeking unique flavours, but sustainable practices are also a consideration. “People are buying chocolate with everything from raspberry to guava, but they’re also wanting to know where these products are coming from,” she says.
This article was first published in Canadian Grocer’s August issue.
