The U.S. candy products market was valued at USD 32.3 billion in 2021 and is projected to expand at a CAGR of 4.2% from 2022 to 2029. Rising demand for convenience foods and increasing health consciousness among consumers are the major factors driving the market growth. Consumers are increasingly opting for products with fewer calories and natural ingredients. Furthermore, manufacturers are focusing on new product launches to meet the needs of their customers. For instance, in January 2021, The Hershey Company launched its new range of candy products, including Hershey’s Caramelized Cacao with Sea Salt and Krave Sea Salt Caramel.

The Gummies and Jellies segment accounted for the largest share of the overall U.S. candy products market in 2021. This segment is projected to expand at the highest CAGR during the forecast period attributed to the increasing number of new product launches by key players. For instance, in May 2021, Ferrara Candy Co. launched Trolli Sour Brite Crawlers, a new sour gummy candy with a unique flavor combination. This product launch has expanded Ferrara Candy Co.’s product portfolio in the gummies and jellies segment.

Furthermore, the increasing trend of premiumization is driving the demand for organic and natural candy products. Consumers are demanding products with natural ingredients and no artificial flavors or colors. For instance, in April 2021, Welch’s launched its new range of organic fruit snacks, including Welch’s Organic Fruit Snacks and Welch’s Organic Fruit ‘n Yogurt Snacks.

The growing demand for sugar-free and low-calorie products, owing to increasing health consciousness among consumers, is also driving the market growth. Manufacturers are focusing on the production of sugar-free and low-calorie candy products to cater to the rising demand. This trend is expected to further boost the market growth during the forecast period. For instance, in February 2021, Mondelez International launched its new range of chocolate candy products, including Oreo Sugar-Free Chocolate Candy Bars.

Moreover, the rising trend of e-commerce sales is another factor driving the market growth. Consumers are increasingly relying on online stores for purchasing candy products as it provides convenience, competitive prices, and a wide range of products. This is further boosting the market in the U.S. Additionally, manufacturers are focusing on the production of organic and natural candy products to cater to the increasing demand from health-conscious consumers.

The chocolate segment dominated the U.S. candy products market and accounted for a share of around 36.6% in 2019. Chocolate is a popular indulgent snack among consumers, owing to its sweet taste, creamy texture, and wide variety of flavors. The growing consumer preference for premium and dark chocolates, especially among health-conscious consumers, has been driving the demand for chocolate-based candy products. In addition, increasing promotional activities and product launches are boosting the market growth of chocolate-based candy products in the U.S.

The hard candy segment is expected to expand at the fastest CAGR of 5.7% over the forecast period, due to the increasing popularity of hard candy products among health-conscious consumers, as they are low in fat and calories. Additionally, manufacturers are introducing various flavors and innovative packaging to attract new customers, which is further driving the segment’s growth.

The supermarkets and hypermarkets segment held the major share of the U.S. candy products market in 2021. Supermarkets and hypermarkets are the most preferred distribution channel for the convenience of buyers. They also offer a wide range of products from different manufacturers and brands. Furthermore, the availability of discounts, offers, and loyalty programs encourages consumers to purchase candy products from supermarkets and hypermarkets.

The online segment is expected to expand at the highest CAGR of 9.7% during the forecast period. This can be attributed to the increasing popularity of e-commerce platforms among consumers due to the convenience of shopping and availability of discounts. The online segment provides consumers with large varieties of products from different manufacturers. Furthermore, online platforms also facilitate home delivery of products, which is expected to drive the segment during the forecast period.

The chocolate segment accounted for the largest revenue share of 54.8% in the year 2022. Increasing consumer demand for chocolates due to their health benefits, attractive packaging, convenience and indulgence are some of the factors driving the segment. Additionally, the growing number of innovative flavors and varieties of chocolates offered by manufacturers to entice customers is another factor boosting the growth of the chocolate segment. For instance, in 2019, Hershey’s launched Hershey’s Kisses Deluxe, a combination of premium chocolate and roasted hazelnuts.

The non-chocolate segment is anticipated to expand at the highest CAGR of 13.4% over the forecast period. The growing popularity of sour, chewy and gummy candies among children is driving the demand for non-chocolate candies. The increasing trend of sour and gummy candy consumption in countries such as the U.S., Mexico, and Canada is creating lucrative opportunities for the segment. Additionally, the introduction of innovative flavored non-chocolate candies by manufacturers such as Jelly Belly and Haribo is expected to further accelerate the growth of the segment.

The U.S. candy products market is expected to grow significantly in the coming years. This growth can be attributed to the increasing demand for convenience food, rising obesity levels, and increasing consumption of sugar-based snacks among consumers. In addition, the growing popularity of premium and innovative candy products is also expected to drive market growth.

The East region is expected to dominate the market in terms of revenue throughout the forecast period. This is due to the presence of a large number of candy manufacturers in the region, such as Hershey’s, Mars, and Nestlé, which have a significant presence in the U.S. market. Moreover, the presence of an organized retail sector and the introduction of innovative and premium products have further helped in the growth of the market in this region.

The West region is expected to witness the highest growth rate in the coming years. This growth can be attributed to the increasing demand for convenience food products and the presence of a large number of candy manufacturers in the region. Moreover, the growing demand for organic and vegan candy products is also expected to contribute to market growth.

In this part of the U.S. candy products business plan we will provide an overview of the expected revenue and expenses. First, we will explain the revenue assumptions that will be used to forecast the future income of the business. Then, we will provide details on the operating expenses that the business will incur.

Revenue Assumptions
The main sources of revenue for a U.S. candy products business come from the sale of candies and other sugary treats. Here you will find a list of the main products that will be sold and other possible sources of revenue such as fundraising, the sale of merchandise, and the leasing of the place for parties and corporate events.

Projecting Expenses
In this section, all the regular expenses related to running the U.S. candy products business will be described. The list of operating expenses includes business taxes, wages, rent, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the U.S. candy market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In March 2022, Mars Wrigley Confectionery launched the Milk Chocolate M&M’s, a new variety to its existing product line.

– In May 2022, Hershey’s launched its new range of chocolates, Hershey’s Gold.

– In June 2022, The Ferrero Group launched Ferrero Rocher’s new range of chocolates.

Some of the prominent players in the U.S. candy market include:

– Mars Wrigley Confectionery
– Hershey’s
– The Ferrero Group
– Nestle SA
– Mondelez International Inc.
– Tootsie Roll Industries, Inc.
– Lindt & Sprungli AG
– Ghirardelli Chocolate Company
– Just Born, Inc.
– Russell Stover Candies, Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global U.S. candy products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Chocolate
– Gummies
– Hard Candy
– Caramels & Toffees
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Convenience Stores
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– U.S.
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Key Factors Driving the U.S. Candy Products Market?
[A]: The U.S. candy products market is driven by factors such as an increase in the demand for convenience foods, growing health consciousness, rising disposable income, increasing consumer preference for healthier options, and the emergence of innovative flavors and products. Consumers are increasingly opting for premium and better-for-you options, which are expected to further drive market growth.

[Q]: Who are the Major Players in the U.S. Candy Products Market?
[A]: The major players in the U.S. candy products market include Hershey’s, Mars, Inc., Nestle USA, Inc., The Ferrero Group, and Lindt & Sprungli AG.

[Q]: What are the Major Types of Candy Products?
[A]: Major types of candy products include chocolate candy, sugar candy, and gum candy.

[Q]: What are the Major Distribution Channels for U.S. Candy Products?
[A]: Major distribution channels for U.S. candy products include supermarkets/hypermarkets, convenience stores, online stores, and other retail outlets.