Sugar Confectionery - US - June 2007

SUMMARY

Abstract

This report provides analysis and insights on the non-chocolate candy market, helping industry players make more informed decisions in support of candy sales. Sales of sugar confectionery products in convenience stores and FDM channels excluding Wal-Mart declined 10% in constant terms since 2001, suggesting a need for challenges to traditional thinking.

Topics addressed in this report include:

• Obstacles to non-chocolate candy consumption, including demographic trends, health issues (weight, diabetes, dental health) and competition from other categories
• The impact of private labels
• Who is buying non-chocolate candy and who is eating it
• The role of sugar-free candy in the marketplace
• Sales trends (in terms of dollars and volume) and which segments and suppliers are the best and worst performers
• Planned candy purchases versus impulse purchases
• Types of candy promotions that kids and teens enjoy

To create this report, Mintel has drawn from its exclusive consumer research, secondary sources, and Mintel Inspire, a database of long-term global trends. Piecing together these resources answers important questions in the sugar confectionery market:

• Why will flavor innovations in non-chocolate candy be more important than ever over the next five years? To whom will they most appeal?
• Should retailers focus on displays in the candy aisle, around the store or at checkout?
• Why should category players be interested in the dental hygiene habits of children five and under?
• What can candy makers and marketers learn from "comfort foods" and popular snacks?
• What messaging might entice dieters to trade snacks for non-chocolate candy?

Mintel's research suggests that breaking away from candy conventions could penetrate untapped markets and create new usage occasions. This report is peppered with ideas to achieve these goals, such as new holidays, interesting party themes, and "breakfast candy."

Sugar confectionery is defined as non-chocolate candy sweetened with sugar, artificial sweeteners, fruit juice or honey. Diet candy with chocolate-flavored coating is included. Chocolate, gum, mints and breath fresheners are excluded from the scope of this report.

This report contains US IRI InfoScan data.

TABLE OF CONTENTS

Table of Contents

• Scope and ThemesWhat you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The bottom line: Sales down in dollars and volume
• Several factors explain poor sales
• Private labels success
• Sugar-free not saving the category
• Suppliers balance new innovations with respect for brand history
• Chewy candy best performing segment
• Oh, look! Candy!: impulse purchasing and retail patterns
• The case for holiday inventions
• Market forecast to edge up to $3.2 billion by 2011
• Market Drivers
• Introduction
• In general, consumption of sweets declining
  • Figure 1: Whether frequently eat sweets and whether feel guilty after eating sweets, April 2000-March 2001, January-September 2004 and January-October 2006
  • Figure 2: Reasons for not eating non-chocolate candy, March 2007
• Competition
  • Figure 3: Items eaten when craving something sweet, March 2007
  • Figure: Television ad: Kellogg's Yogos, 2007
• Kids and candy
• Demographics
  • Figure 4: Incidence of children's and teen's candy consumption, January-October 2006
  • Figure 5: U.S. population of children under 18, 2002, 2007 and 2012
• Childhood obesity and oral health
• Candy marketing
  • Figure 6: Where children spend their disposable income, 2003
• The 18-24 market
  • Figure 7: Items eat when craving something sweet, by age, March 2007
  • Figure 8: U.S. population of adults 18 and older, 2002-12
• Sugar-free options
  • Figure 9: Number of new low/no/reduced sugar non-chocolate confectionery products released by year, 2001-06
  • Figure 10: FDM sales of sugar-free/diet candy, at current and constant prices, 2001-06
  • Figure 11: Purchase of sugar-free gum, mints and candy for self or others, March 2007
• Private labels
  • Figure 12: Private label volume (in pounds) FDM sales of sugar confectionery, segmented by category, 2001-06 and 2006
• Market Size and Trends
• Market size
  • Figure 13: U.S. retail sales of sugar confectionery, at current and constant prices, 2001-06
  • Figure 14: Total volume (in pounds) FDM sales of sugar confectionery, segmented by category, 2001-06
• Wal-Mart estimate
• Market trends
  • Figure 15: New product releases in sugar confectionery, 2001-06
• Specific innovations
  • Figure 16: Television ad for Wonka's SweetTarts Squeez, 2007
  • Figure 17: Werther's Original Caramelts, 2007
• More traditional candies become sugar-free
  • Figure 18: CVS Sugar-free Assorted Fruit Candy, 2007
  • Figure 19: Guava Paste Rolls from columbia, Trader Joe's, 2007
• Healthy candy
• Market Segmentation
• Introduction
• Sugar confectionery
  • Figure 20: FDM sales of sugar confectionery, segmented by type, 2004 and 2006
• Non-chocolate chewy candy
  • Figure 21: FDM sales of non-chocolate chewy candy, at current and constant prices, 2001-06
• Seasonal non-chocolate candy
  • Figure 22: FDM sales of seasonal non-chocolate candy, at current and constant prices, 2001-06
• Hard sugar candy package/roll
  • Figure 23: FDM sales of hard sugar candy package/roll, at current and constant prices, 2001-06
• Novelty non-chocolate candy
  • Figure 24: FDM sales of novelty non-chocolate candy, at current and constant prices, 2001-06
  • Figure 25: WonkaZoid 3-in-1 candy, dispenser and video game set, 2007
• Licorice boxes/bags
  • Figure 26: FDM sales of licorice boxes/bags, at current and constant prices, 2001-06
• Supply Structure
• Companies and brands
  • Figure 27: Manufacturer FDM sales of sugar confectionery in the U.S., 2004 and 2006
• Non-chocolate chewy candy
  • Figure 28: Manufacturer FDM brand sales of non-chocolate chewy candy in the U.S., 2004 and 2006
• Seasonal non-chocolate candy
  • Figure 29: Manufacturer FDM brand sales of seasonal non-chocolate candy in the U.S., 2004 and 2006
• Hard sugar candy package/roll
  • Figure 30: Manufacturer FDM brand sales of hard sugar candy/pkg and roll candy in the U.S., 2004 and 2006
• Novelty non-chocolate candy
  • Figure 31: Manufacturer FDM brand sales of novelty non-chocolate candy in the U.S., 2004 and 2006
• Licorice boxes/bags
  • Figure 32: Manufacturer FDM brand sales of licorice box/bag in the U.S., 2004 and 2006
• Advertising and Promotion
• Introduction
• Masterfoods USA
  • Figure 33: Starburst--TV ad: toxic, 2007
  • Figure 34: Starburst--TV ad: whale, 2007
  • Figure 35: Skittles--TV ad: leak, 2007
  • Figure 36: Skittles--TV ad: beard, 2007
• Nestlé USAFigure 37: Wonka Laffy Taffy--TV ad: "stretch out the fun," 2007
  • Figure 38: Wonka Nerds--TV ad: so many nerds, 2007
• William Wrigley Jr. Co.
  • Figure 39: Altoids--TV ad: Altoids Sours challenge, 2007
  • Figure 40: Lifesavers--TV ad: acting class, 2007
  • Figure 41: CrèmeSavers--TV ad: "CrèmeSavers, yum," 2007Cadbury Adams USA
  • Figure 42: Sour Patch Kids--TV ad: "pigtail," 2007
• Storck USA
  • Figure 43: Werther--TV ad: nostalga, 2007
• Perfetti Van Melle
  • Figure 44: Airheads--TV ad: "Out of control," a tie-in with the Pixar movie "Cars," 2007
• Jelly Belly Candy
  • Figure 45: Jelly Belly--TV ad: 50 flavors, 2007
  • Figure 46: Jelly Belly--TV ad: Buttered Popcorn variety, 2007
• Retail Distribution
• Introduction
  • Figure 47: U.S. retail sales of sugar confectionery, by channel, 2004 and 2006
• Convenience stores
  • Figure 48: U.S. convenience sales of sugar confectionery, at current and constant prices, 2001-06
• Supermarkets
  • Figure 49: U.S. supermarket sales of sugar confectionery, at current and constant prices, 2001-06
• The Consumer: Adults
• Introduction
• Summary
• Consumption of sweets
  • Figure 50: Items eaten when craving something sweet, March 2007
• Purchase of non-chocolate candy
  • Figure 51: Whether purchase non-chocolate candy for self or others, by gender, March 2007
  • Figure 52: For whom non-chocolate candy is bought, by gender, March 2007
  • Figure 53: For whom non-chocolate candy is bought, by number of children in the household, March 2007
• Adult purchases of non-chocolate candy for children
  • Figure 54: Ages of the children for whom non-chocolate candy is bought, March 2007
  • Figure 55: How non-chocolate candy is bought when bought for children: planned vs. on impulse, March 2007
  • Figure 56: How non-chocolate candy is bought when bought for children: planned vs. on impulse, by the ages of children for which candy is bought, March 2007
• Adult purchases of non-chocolate candy for self
  • Figure 57: How non-chocolate candy is bought when bought for self: planned vs. on impulse, March 2007
  • Figure 58: How non-chocolate candy is bought when bought for self: planned or on impulse, by gender, March 2007
  • Figure 59: How non-chocolate candy is bought when bought for self: planned or on impulse, by age, March 2007
• Brands of non-chocolate candy eaten among adults
  • Figure 60: Brands of non-chocolate candy eaten, by age, January-October 2006
• Times of day when non-chocolate candy is eaten
  • Figure 61: Times of day when non-chocolate candy is eaten among adult candy eaters, March 2007
• Interest in new flavors of candy
  • Figure 62: Whether enjoy trying new flavors of non-chocolate candy, by key demographics, March 2007
• Attitudes toward sugar-free candy
  • Figure 63: Attitudes toward sugar-free candy, by age, March 2007
• The Consumer: Teens and Children
• Introduction
• Summary
  • Figure 64: Incidence of teen candy consumption, by gender, January-September 2005 and January-October 2006
  • Figure 65: Brands of candy eaten by teens, January-October 2006
  • Figure 66: Incidence of children's candy consumption, by gender, January-September 2005 and January-October 2006
  • Figure 67: Brands of candy preferred by children, January-October 2006
• Candy promotions children and teens prefer
  • Figure 68: Types of candy promotions children like, as reported by adults who buy non-chocolate candy for children, March 2007
  • Figure 69: Types of candy promotions children like, as reported by adults who buy non-chocolate candy for children, by age of children for which candy is bought, March 2007
• Future and Forecast
• Future trends
• Redefining the candy experience
• Ethics and candy: Sweets that are sweet
• The future of candy: Less mass, more class?
• Market forecast
• Sugar confectionery market
  • Figure 70: Forecast of U.S. retail sales of sugar confectionery in convenience stores and FDM channels (excluding Wal-Mart), at current and constant prices, 2006-11
• Non-chocolate chewy candy
  • Figure 71: Forecast of U.S. FDM sales of non-chocolate chewy candy, at current and constant prices, 2006-11
• Seasonal non-chocolate candy
  • Figure 72: Forecast of U.S. FDM sales of seasonal non-chocolate candy, at current and constant prices, 2006-11
• Hard sugar candy package/roll
  • Figure 73: Forecast of U.S. FDM sales of hard sugar candy package/roll, at current and constant prices, 2006-11
• Novelty non-chocolate candy
  • Figure 74: Forecast of U.S. FDM sales of novelty non-chocolate candy, at current and constant prices, 2006-11
• Licorice boxes/bags
  • Figure 75: Forecast of U.S. FDM sales of licorice box/bag, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations