Candy Conversation: Trends That Have Heart in 2019

Some of candy's eye-catching headlines today are a bit about cosmic voids. Like the hole Sweethearts are leaving in our, well, hearts, by not being manufactured this year because new owner Spangler couldn't get to it in time for Valentine's Day 2019. And Hershey Canada seemingly having all the time in the world to send its new Reese's Pieces variety literally into outer space from a launch pad in California's Mojave Desert.

But what are some of today's industry trends that have some staying power outside of imaginary extraterrestrial chocolate tastings for the sake of cool marketing, and a slightly disappointing candy-heart season?

In my recent update of Dun & Bradstreet's Candy Manufacturing profile, I found a colorful variety of challenges and opportunities facing the industry's major companies that take our discussion beyond conversation hearts (which you can still get from Brach's, by the way).

Here are a few.

1. Surprise-Inside Candy: If you have kids, or you're around kids a lot as the fun aunt or uncle, you've probably passed them your phone a few times a day so they could watch the latest YouTube unboxing video. Another kid — or sometimes an adult with an ultra-perky, squeal-y voice you won't be able to get out of your dreams at night — opens a container or bag or plastic egg to reveal a surprise toy, and the crowd (your kid) goes wild. Blind bags are all the rage these days, and candy is no exception to this trend. With surprise-inside candy demand from consumers on the rise, more candy manufacturers are expected to take advantage of the segment’s growth, according to a recent report in Candy Industry Magazine. Ferrero is one leading the way with its Kinder Surprise Eggs outside the US and Kinder Joy here, the latter of which made $150 million in the year ending November 2018, per IRI figures. One side has a surprise, and the other is made of hazelnut wafer balls and cream. Wonder Ball (Frankford Candy) and ToyBox (Atlantic Candy) are other emerging brands.

2. Fewer Additives: Those missing out on traditional candy hearts (MISS U, LUV U) this Valentine's Day may take solace in a newer type of chocolate that's perfectly pink for the occasion. Ruby cocoa, which produces a pink, berry-like flavor without additives, entered the market in 2017 through Barry Callebaut, according to Euromonitor International. The manufacturer claimed that no flavorings or colors were added, and Nestle later followed suit by introducing Kit Kat Ruby. Additional research into ruby cocoa to refine taste and appearance — the Ruby bar's shade is a bit reminiscent of Pepto-Bismol, which may or may not be appealing — could change how some products are formulated, pleasing customers looking for simpler, natural chocolates.

3. Cannabis Candy: This one isn't for the kids, but one of the key drivers for the global confectionery market in the coming years will be the rapid legalization of cannabis worldwide, according to Technavio. Chocolate candy manufacturers could see increased sales boosted by cannabis companies seeking to use their chocolate products. Cannabis-infused chocolate sales continue to grow each year, while cannabis consumers may prefer a good chocolate taste over the cannabis itself while consuming edibles, according to a report in Confectionery News. Although I don't necessarily see Hershey jumping at this one, smaller, craft chocolatiers may find innovative ways to blend two premium products together.

In addition to seeking out new products to delight consumers, other major expectations for the candy industry this year center around increased sustainability practices as well as more customer insight on packaging and snacking trends.

Amber Krosel is an editor at Dun & Bradstreet, where she reports on emerging trends in the food and beverage industries. Follow Amber on Twitter.

D&B Editorial is an in-house team that creates indispensable company, industry, and IT reports found in D&B Hoovers, First Research, and other D&B products. Industry profiles cover key challenges, trends, and opportunities, while company and CRUSH reports cover strategy, financials, and technology developments.