Specialty Food Magazine

Fall 2021

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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Sales Stats and Outlook A top-10 category poised for growth and innovation through 2025, Chocolate & Other Confectionery will see a CAGR of 4.8 percent with sales going from $2.8 billion in 2021 to a projected $3.4 billion in 2025, according to the Specialty Food Association's State of the Specialty Food Industry research, 2020-2021 edition. While overall category growth was somewhat sluggish in 2020, when consumers tended to prioritize essentials, specialty items grew 9.4 times faster than all products in the category, led by non-chocolate confectionery (13.7 percent), and followed by chocolate (11.7 percent). According to SFA's report, innovation and trends will evolve from products that are fair trade and vegan, fresh/ perishable, have floral-forward notes, are natural low/no sugar, and are functional and nutritionally enhanced with fruits/veggies. Last year's unpredictability changed the way consumers shopped and engaged with food. The pandemic pushed online sales to record highs and slowed some other channels' performances, like convenience, drug, and specialty. According to the National Confectioners Association's 2021 State of the Treating report, overall online confectionery sales skyrocketed (76 percent), and the annual online dollars per buyer increased 14.3 percent. Grocery sales were up 10.5 percent for chocolate and 9.9 percent for non- chocolate. Changes in shopping behavior also evolved. The NCA reports that six in 10 consumers either purchased different package sizes of chocolate and/or confectionery (41 percent bought more value packs), or bought different brands and/or items than they normally would. About one in three shoppers (36 percent) sent or dropped off confectionery gifts or gift baskets in lieu of visiting during the pandemic. "Locals were gifting and sending chocolate assortments to each other during lockdown like crazy," recalls Mike Grissmer, who, along with his wife, owns Deborah Ann's Sweet Shoppe in Bethel, Connecticut. "It was a way for friends and neighbors to pick each other up while supporting our local business," he adds. W hile 2020 redefined everything from how consumers spend to where they shop, it also left a lasting impression on the kinds of foods and flavors they will continue to consume. Whether adventurous combinations that mingle the familiar with the exotic, or ingredients that are mood boosting, comforting, or just do more, shoppers have shifted towards conscious indulgences to fit their lifestyle needs. Often these foods made the ordinary, extraordinary, and during the past 18 months, chocolate and candy were no exception. "The confectionery category has been resilient, and chocolate and candy played a central role in how we all made ordinary moments at home feel a little more special," notes Lauren Boland, director of communications for the National Confectioners Association. Cacao Barry's WholeFruit Chocolate Evocao 30 SPECIALTY FOOD SPECIALTYFOOD.COM CATEGORY SPOTLIGHT

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