A recent CROSSMARK shopper study revealed that while confections satisfy consumers’ sweet cravings and often provide physiological and psychological benefits, recent price increases may be impacting buying behavior.
More than a sweet treat, consumers depend on candy for physical and mental well-being
69% of consumers state their #1 reason for eating candy is to fulfill a craving.
Because of these benefits, candy has been seemingly immune to pricing. In the past, consumers would not sacrifice or substitute their favorite treat despite price increases.
However, three long held beliefs about consumers’ candy habits are being challenged.
Price increases leading to volume declines, channel shifting and alternate snacking options
Despite confections being historically inelastic to changes in price, inflation has had an impact on today’s consumers with price increases resulting in volume declines.
Consumers are increasingly shopping around for deals, gravitating to grocery, club and convenience.
62% of consumers are switching to less expensive snack options as the price of chocolate increases. Chocolate units are down while salty snacks and fruit are increasing.
Shoppers are increasingly willing to consider store brand candy as an alternative.
Key opportunities for confections brands
To combat some of these shifts in buying behavior, brands should try to resist further price increases and drive multiple sales with 2-for or 3-for promotions. By focusing on selling smaller package sizes and having a tiered approach (premium vs. mainstream products), you can better connect with the value-seeking shopper.
Confections brands should highlight any elements of their value proposition that may help them stand out to consumers. For example, emphasizing any health benefits such as fighting stress, boosting energy, and increasing the release of endorphins and “happy” neurotransmitters like serotonin.
Reinforcing product quality impressions, including manufacturing and social benefits such as fair-trade ingredients and no artificial ingredients, will help shoppers stay loyal to your brand/product instead of seeking alternative options.
