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The U.S. Market for Non-Chocolate Candy: Volume 2 in the series

In a data-intensive yet compact new format, this Packaged Facts report analyzes the $8 billion market for non-chocolate candy, covering the mass-market and gourmet sectors as well as retail and direct sales. Providing comprehensive sales, pricing, retail promotion, national advertising, and consumer data, the report focuses on growth segments, brand competition, and new product trends in an industry where flat growth is challenging all players, as reflected in a fresh wave of mergers and acquisitions.

This report first quantifies the non-chocolate candy market, covering market size and composition for 1998 to 2002 as well as projected market growth for 2003 to 2007. An analysis of the competitive situation follows, addressing M&A activity, marketer and brand shares, consumer demand for product variety and innovation, retailer clout and private-label prospects, and Internet marketing strategies. Next come detailed individual profiles of leading mass marketers and novelty and gourmet candymakers. The final chapter tabulates and analyzes demographics for non-chocolate candy overall as well as by consumption level, candy type, and brand line. Use this compact but comprehensive report to keep up with industry developments relating to target marketing, the seasonal/holiday market, brand maintenance and line extensions, novelty and licensed products for kids, nutritional concerns, and the uses of the Internet.

This report is the second of a three-part series on the confectionery market. The series may also be purchased in its entirety. When purchasing the series you also receive an added Executive Overview of all three volumes, which provides a cross-comparison of opportunities and competition in these inter-related sectors of the confectionery market.

Volumes in the series are as follows:

Volume I: The U.S. Market for Chocolate Candy
Volume II: The U.S. Market for Non-Chocolate Candy
Volume III: The U.S. Market for Gum, Mints & Breath Fresheners
The U.S. Market for Chocolate, Candy, Gum & Mints - Volumes I-III


Hispanic Population Holds the Key to Sweet Profits for Candy Industry

New York, December 17/PRNewswire - Candy manufacturers looking for growth channels over the next five years should consider making a special effort to court the Hispanic consumer, according to The U.S. Market for Non-Chocolate Candy, a newly published Packaged Facts report available at MarketResearch.com. In an otherwise flat market, the Hispanic demographic, with its booming population and nearly $600 billion buying power, represents perhaps the biggest opportunity for confection marketers.

Overall, according to the report, Americans consumed $4.5 billion worth of non-chocolate candy in 2001; Hispanics are responsible for a large share of that spending. For example, Hispanic households consume twice the amount of Jolly Ranchers and Skittles candies as non-Hispanic white households.

"Marketers know that the Hispanic market has tremendously powerful consumer reach," said Don Montuori, Acquisitions Editor for Packaged Facts, "and several candy manufacturers are taking steps to ensure that their products are front and center when Hispanic consumers want to satisfy their sweet tooth."

To capitalize on this market, U.S. candy makers are busily launching Hispanic-targeted or Hispanic-friendly confections, picking up on popular fruit flavors such as mango (often in sour or hot versions) and the venerable Hispanic favorite, dulce de leche. Other U.S. manufacturers are acquiring manufacturers of Mexican candy, while U.S.-based divisions of Latin companies are packaging and promoting candy products for the American market.

The U.S. Market for Non-Chocolate Candy is the second volume in a series of reports from Packaged Facts on the chocolate, candy and gum markets. The reports provide detailed information about consumer demographics, as well as distribution and marketing trends, product development, and emerging promotional campaigns. The reports also include historical sales data, as well as market projections through 2007.

About Packaged Facts
Packaged Facts, a division of MarketResearch.com, produces research reports on a wide range of consumer industries, including information on domestic and global market trends and opportunities.

About MarketResearch.com
MarketResearch.com is the leading provider of global market intelligence products and services. With over 50,000 research publications from more than 350 top consulting and advisory firms, MarketResearch.com offers instant online access to the world’s most extensive database of expert insights on global industries, companies, products, and trends.

I. Executive Summary

    The U.S. Market for Non-Chocolate Candy
    • Wholesale Dollar Shipments and Per Capita Consumption
    • Overall Retail Sales at $6.2 Billion
    • Pockets of Growth
    • Projected Market Growth
    • Top Marketers and Brands
    • Consumer Advertising Expenditures
    • Product Proliferation vs. Market Consolidation
    • Border Crossings and Brand Extensions
    • Demographics for Non-Chocolate Candies
    • Figure 1-1: Top Non-Chocolate Candy Brands by Household Usage Rates, 2002 (% of U.S. households)

II. The Market

    Market Size and Composition
    • Note on IRI Market Data and Packaged Facts Figures
    • Market Definition
    • Wholesale Dollar Shipments at $4.5 Billion
    • Wholesale Per Capita Consumption at $17
    • Overall Retail Sales at $6.2 Billion
    • Seasonal Candies at 19% of Sales
    • Supermarkets and Mass Merchandisers at 16% Share
    • Figure 2-1: U.S. Retail Sales of Non-Chocolate Candy, 1998-2002 (dollars)
    • Figure 2-2: U.S. Manufacturers’ Pound and Dollar Shipments of Non-Chocolate Candy, 1997-2001 (pound and dollar)
    • Figure 2-3: Manufacturers’ Pound and Dollar Shipments of Non-Chocolate Candy by Product Type, 1997-2001 (pounds and dollars)
    • Figure 2-4: Dollar Price/Pound for Manufacturers’ Shipments of Non-Chocolate Candy by Product Type, 1997 vs. 2001 (dollars): 6 Product Types
    • Figure 2-5: U.S. Per Capita Consumption of Non-Chocolate Candy: Pounds and Wholesale Dollar Value, 1997-2001 (pounds and dollar)
    • Figure 2-6: U.S. Retail Sales of Non-Chocolate Candy, 1998-2002 (dollars)
    • Figure 2-7: Non-Seasonal vs. Seasonal Share of Non-Chocolate Candy Sales, 2002 (percent)
    • Figure 2-8: Share of Seasonal Non-Chocolate Candy Sales Through IRI-Tracked Outlets by Holiday Segment, 1998 vs. 2002 (percent): Christmas, Easter, Valentine, Halloween, All Other Seasonal
    • Figure 2-9: Share of U.S. Non-Chocolate Candy Market by Chain Retail Channel, 2002 (percent): 4 Retail Channels, Other

Market Forecasts

  • Pockets of Growth
    • Shelf and Sales Growth for Novelty Candies
    • Sour vs. Hot
    • Non-Chocolates for Non-Kids
    • Hispanic Market in the Spotlight
    • Candy on the Go
    • The Wal-Mart Express

  • Projected Market Growth
  • Overall Market to Reach $6.9 Billion in 2007
  • Figure 2-10: Non-Chocolate Candy Sales by IRI Classification, 1998 vs. 2002 (dollars): 12 Classifications
  • Figure 2-11: Sales Growth for Selected IRI Non-Chocolate Candy Classifications, 1998-2002 (dollars): 12 Classifications
  • Figure 2-12: Projected U.S. Population by Age Bracket, 2000-2010 (number): From Age Under 5 to Age 75 and Over
  • Figure 2-13: Population Projections for Selected U.S. Racial/Ethnic Populations, 2000-2020 (number): Non-Hispanic White, Non-Hispanic Black, Hispanic, Non-Hispanic Asian/Pacific Islander
  • Figure 2-14: Projected U.S. Retail Sales of Non-Chocolate Candy, 2002-2007 (dollars)

III. The Marketers

    Marketer and Brand Shares
    • The Top Marketers
      • Seasonal vs. Non-Seasonal
      • Twizzlers at Over $100 Million in IRI-Tracked Sales

    • Consumer Advertising Expenditures
      • Mars vs. Hershey in Advertising Expenditures
      • Other Top Advertisers

    • The Competitive Situation
      • Signs of Hard Times
      • New Product Onslaught
      • Market Consolidation
      • Border Crossings
      • Brand Extensions
      • Factoring in the Experience

    • New Product Trends
      • BodySmarts Fail
      • The Fruit Juice Wave
      • Growth and Gourmet in Sugar-Free
      • Caramels and Cream
      • Novelty Products
      • Kid Power and Interactive Products
      • Sensory Stimulation with Sours
      • The Licensing Field
      • Candy and Kids HBC

    • Figure 3-1: Top Marketers of Non-Chocolate Candy by IRI-Tracked Share, 2002 (percent): 9 Marketers, Private Label
    • Figure 3-2: Top Marketers of Non-Chocolate Candy by IRI-Tracked Share: Non-Seasonal, Seasonal, and Overall, 2002 (percent): 18 Marketers, Private Label, Other
    • Figure 3-3: Top Marketers of Non-Chocolate Candy by IRI-Tracked Sales: Non-Seasonal, Seasonal, and Overall, 2002 (dollar): 18 Marketers, Private Label, Other
    • Figure 3-4: Selected Brand Lines of Non-Chocolate Candy by IRI-Tracked Sales, 2002 (dollar): 63 Brand Lines
    • Figure 3-5: Selected Non-Seasonal Non-Chocolate Candy Product Lines by 12-Month Increase in IRI-Tracked Sales, Second-Quarter 2002 (dollars): 36 Product Lines
    • Figure 3-6: Selected Seasonal Non-Chocolate Candy Product Lines by 12-Month Increase in IRI-Tracked Sales, Second-Quarter 2002 (dollars): 11 Product Lines

IV. Marketer Profiles

    Competitive Profile: Brach’s Confections, Inc.
    • Company Overview
    • Revamping Product Lines
    • Cobranding and Licensing
    • Smucker’s and the Jelly Bean
    • Product Line-Up
    • Competitive Review
      • The Fresh Candy Shoppe
      • Transplanting and Outsourcing
      • New Product Launches
      • Internet Operations

    Competitive Profile: Hershey Foods Corp.

    • Company Overview
    • #1 U.S. Candy Marketer
    • “Sharper Focus” in Non-Chocolates
    • Removing Kinks in the System
    • Competitive Review
      • Advertising Expenditures
      • Product Launches and Promotions
      • Internet Operations

    Competitive Profile: Jelly Belly Candy Co.

    • Company Overview
    • Product Line-Up
    • The Reagan Connection
    • Competitive Review
      • Advertising Expenditures
      • New Product Launches
      • Internet Operations

    Competitive Profile: Mars, Inc.

    • Company Overview
    • At Home and Abroad
    • Competitive Review
      • Advertising Expenditures
      • Targeting Hispanics
      • New Product Launches
      • Internet Operations

    Competitive Profile: Nestlé USA, Inc. (Nestlé S.A., Switzerland)

    • Company Overview
    • Product Line-Up
    • Willy Wonka Candy Factory
    • Competitive Review
      • Advertising Expenditures and Consumer Promotions
      • New Product Launches
      • Internet Operations

    Competitive Profile: Tootsie Roll Industries, Inc.

    • Company Overview
    • Product Line-Up
    • Competitive Review
      • Advertising Expenditures and Consumer Promotions
      • New Product Launches

V. The Consumer

    Non-Chocolate Candy Demographics
    • Note on Simmons Survey Data and Figures
    • Overview of Household Consumption
      • 78% of Households Eat Candy
      • Tootsie Roll the Top Non-Chocolate Brand at 7%
      • 21% Are Heavy Users

    • Patterns and Variations for Mass-Market Brands
      • Gender Patterns
      • Flavor-Preference Flip Between Juniors and Seniors
      • Blacks as Prime Consumers
      • Brand Preferences by Region
      • Educational, Occupational, and Household Income Patterns
      • Patterns by Household Size
      • Jolly Rancher Is Top Children’s Non-Chocolate

    • Figure 5-1: Household Usage Rates for Candy: Overall, by Usage Level, and by Non-Chocolate Candy Brand, 2002 (% of U.S. Households)
    • Figure 5-2: Top Non-Chocolate Candy Brands by Household Usage Rates, 2002 (% of U.S. Households)
    • Figure 5-3: Demographic Characteristics Favoring Heavy Use of Candy, 2002 (U.S. Households)
    • Figure 5-4: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Gender, 2002 (% of U.S. Households)
    • Figure 5-5a: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Age Bracket, 2002 (% of U.S. Households)
    • Figure 5-5b: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Age Bracket, 2002 (% of U.S. Households)
    • Figure 5-6: Top Non-Chocolate Candy Brands Among 18- to 24-Year-Olds: By Household Usage Rates, 2002 (% of U.S. Households)
    • Figure 5-7: Top Non-Chocolate Candy Brands Among 65- to 74-Year-Olds: By Household Usage Rates, 2002 (% of U.S. Households)
    • Figure 5-8: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Race/Ethnicity, 2002 (% of U.S. Households)
    • Figure 5-9: Top Non-Chocolate Candy Brands Among African-Americans: By Household Usage Rates, 2002 (% of U.S. Households)
    • Figure 5-10: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Region, 2002 (% of U.S. Households)
    • Figure 5-11: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Educational Attainment, 2002 (% of U.S. Households)
    • Figure 5-12: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Occupation, 2002 (% of U.S. Households)
    • Figure 5-13a: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Household Income Bracket, 2002 (% of U.S. Households)
    • Figure 5-13b: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Household Income Bracket, 2002 (% of U.S. Households)
    • Figure 5-14: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Household Size, 2002 (% of U.S. Households)
    • Figure 5-15: Top Non-Chocolate Candy Brands Among Households of Five or More Persons: By Usage Indices, 2002 (Indices of U.S. Households)
    • Figure 5-16: Household Usage Rates for Selected Non-Chocolate Candy Brands: By Age of Children in Household, 2002 (% of U.S. Households)

VI. Looking Ahead

    Trends and Opportunities
    • Sales Growth in Novelty Candies and Extreme Flavors
    • Sales Growth in Licensed Products and Promotional Tie-Ins
    • Sales Growth in Hispanic Market
    • Sales Growth in On-the-Go Candy
    • Sales Growth in Non-Chocolates for Non-Kids
    • Border Crossings and Brand Extensions: Opportunities and Threats
    • Sales Growth in Non-Chocolate Non-Candies/Kids HBC

Appendix I: Examples Of Consumer And Trade Advertising And Promotions

Appendix II: Addresses Of Selected Marketers

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