Reading: Supermarket News: U.S. candy sales rise $1.8B as units keep falling

Supermarket News: U.S. candy sales rise $1.8B as units keep falling

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U.S. candy sales rose nearly $1.8 billion over the past year even as unit sales fell by more than 770 million, a split that shows the category is still growing in dollars while shoppers are buying less candy. Households bought an average of 116 candy units, more than seven fewer than in the prior period, and the gain is coming from higher prices, not higher volume.

That matters now because Halloween is near, and candy companies are heading into the season with price doing more of the heavy lifting than consumption. The broader picture has been building for years: since 2019, candy category sales have grown 65% while units have grown only 4%, and the average spend per candy unit has climbed 59% since then.

The mix is shifting, too. Sugary candy unit sales have grown 16% since 2019, while chocolate consumption has stayed flat. Gummies account for most of the growth in sugary candy, and sugar-free, low-carb and freeze-dried candy are also gaining ground. Brands including Smarties, Albanese, BUBS Swedish Candy and Hot Tamales are benefiting from that shift as shoppers move toward formats that are taking more space in the aisle.

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One part of the market is moving faster than the rest. Non-chocolate units per Millennial household have increased 20% since 2019, while Millennial households have kept chocolate consumption stable. GLP-1 households are pulling back even more sharply: they bought 5.4 fewer candy units per household in the six months ending Aug. 31, compared with a national decline of 4.5 units per household over the same period. That gap suggests some households are cutting back faster than the broader market, even as sugary candy keeps taking share.

The unanswered question is how long candy can keep delivering dollar growth if unit sales continue to slide. For now, the category is being carried by higher prices and changing mix, but the next stretch will show whether that is enough to hold sales when consumers keep walking past more candy instead of buying more of it.

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