Candy and Snacks: A Winning Formula for Retailers

Anne-Marie Roerink, Principal of 210 Analytics

2024 Trends: Balancing Value and Indulgence

The dominant story of 2024 was the “value balancing act,” as consumers skillfully navigated between indulgence and practicality. This year saw a surge in at-home cooking, with many skipping restaurant visits, boosting sales across categories. At the same time, value-conscious shopping was pivotal—consumers sought deals, shopped more frequently, and gravitated toward everyday low-price retailers. Meal planning, avoiding food waste, and choosing private-label brands became commonplace strategies.

Consumers are blending price considerations with emotional triggers like mood, convenience, nutrition, and sustainability. For candy and snacks, this translates into a mix of frugality and splurges, particularly during holidays, celebrations, or moments of self-care. Non-chocolate candy gained popularity, as did snacks that doubled as meal complements.

Steps to growing sales in this environment

  1. Celebrating Every Occasion 
    • Holidays and special occasions are prime moments for indulgence. Weekly sales data consistently show spikes around major holidays like Valentine’s Day, Easter, Halloween, and the Super Bowl. Smaller, lesser-known holidays—like National Chocolate Chip Day or National Watermelon Day—also present unique opportunities for engagement.
    • Retailers excel in creating themed displays and unique assortments tailored to local tastes. For example, pairing chips and dips for game day or showcasing watermelon-flavored candies on National Watermelon Day can inspire unplanned purchases and increase basket sizes.
  2. Self-Care Through Treats 
    • The growing emphasis on self-care has shifted consumer perceptions—physical health and emotional well-being are now seen as interconnected. For many, an affordable treat like a favorite candy or snack offers a simple moment of joy.
    • This is where retailers can shine. By featuring regional favorites or creating fun, one-of-a-kind displays, retailers can connect with their customers emotionally. A store in Utah, for instance, celebrated Veterans Day with candy shaped like airplanes, while a Southeast retailer highlighted beloved Moon Pies. These creative touches not only delight shoppers but also build lasting loyalty.
  3. The Staying Power of Brands 
    • Despite private-label growth across retail, candy and snacks remain strongholds of brand loyalty. Nostalgia and trust in familiar names drive this connection.
    • Retailers can capitalize on this by balancing recognizable brands with niche, local, or trending items. Seasonal exclusives and new flavors provide excitement, giving shoppers reasons to explore and buy.
  4. Maximizing Candy and Snack Sales 
    • Candy and snacks are incremental sales drivers. Seasonal confectionery offers exceptional returns, as trial purchases during holidays often lead to repeat sales throughout the year. Strategic placement—like endcaps, checkout lanes, and secondary displays—can boost visibility and encourage impulse buys.
    • Retailers should focus on high-impact opportunities, such as themed promotions for Halloween or the Super Bowl. Even small adjustments, like pairing complementary items or featuring trending flavors, can deliver significant sales increases.
  5. The Role of Innovation 
    • Innovation keeps shoppers engaged. Candy and snack purchases are often driven by mood, and shoppers love discovering new flavors, textures, and global inspirations.
    • Limited-time offerings and seasonal exclusives are excellent tools for retailers. Shoppers enjoy the thrill of finding something new, like tamarind-flavored candy or pickled-flavored snacks, creating a “scavenger hunt” environment in-store.
Looking Ahead to 2025 focus areas include: 
  • Value-driven promotions: Use pack-size variety and strategic pricing to attract shoppers.
  • Seasonal and cultural celebrations: Tailor assortments and displays to resonate with local communities.
  • Private-brand strategies: Offer affordable alternatives while maintaining a robust branded selection. 
  • Embrace innovation.

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