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The Hershey Company is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. The company has more than 90 brands around the world that drive more than $8 billion in annual revenues, including such iconic brand names as Hershey's, Reese's, Kit Kat®, Jolly Rancher, Ice Breakers, SkinnyPop, and Pirate's Booty. www.thehersheycompany.com
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Even as the category posted an increase
in sales for 2020, candy saw its smallest share
of in-store sales in five years.
Five-Year Trend: Candy
Margin
percentage
Percent change in total unit volume
Percent change
in total sales
2020
2019
2018
2017
2016
SNACKS
0.1%
4.0%
1.6%
2.8%
1.7%
-5.7%
-1.8%
-3.2%
-2.0%
-1.9%
48.46%
48.62%
49.02%
48.26%
47.00%
In-Between
Bites
Stocking
Up
Post-Pandemic
Return to Health
Staying
Connected
The COVID-19 pandemic brought about heightened interest in comfort foods and shelf-stable items, such as chips, pretzels and snack nuts, as well as frozen sweets.
Consumers have added more between-meal snacking occasions per capita over the past five years, and snack-food consumption at meals has also increased over the past decade.
Amidst the uncertainty of the coronavirus
outbreak, candy and snacks remained important to consumers’ emotional well-being and feeling connected — whether it was a quick escape for parents from the chaos of balancing work from home with virtual school, a celebration of a milestone moment, or sending a treat to a friend from afar.
As the U.S. emerges from the pandemic, consumers are expected to return to a wider variety of snack options, particularly healthy snacks. Enhanced packaging that clearly communicates a product’s better-for-you attributes — such as non-GMO, organic, gluten free and protein content — are anticipated to resonate well with consumers during these times.
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Category Analysis: Candy
2020
2020
% change
% change
$21,525
$13,154
$5,907
$5,754
$2,198
$2,011
$50,549
10.6%
7.1% -20.4% -0.8% 13.5% -15.9%
2.5%
$3,232
$1,975
$887
$864
$330
$302
$7,590
9.7%
6.2% -21.1% -1.5%
12.6% -16.7% 1.7%
AVERAGE SALES PER STORE
Industry Total
(in millions)
Bagged/repackaged peg candy
Chocolate bars/packs
Gum
Novelties/seasonal
Non-chocolate bars/packs
Candy rolls, mints, drops
Total
Following a 4 percent industry sales increase in 2019, candy managed a 1.7% increase in a tougher 2020.
Share of
in-store sales
3.12%
3.13%
3.17%
3.17%
3.19%
CANDY
Bagged/repackaged peg candy and chocolate continue to gain share at the expense of gum and candy rolls, mints and drops.
Candy Share by Segment
Dollar sales
Unit volume
42.6%
39.8%
26.0%
24.9%
11.7%
11.9%
11.4%
14.6%
4.3%
4.9%
4.0%
3.9%
Bagged/repackaged
peg candy
Chocolate
bars/packs
Gum
Non-chocolate
bars/packs
Candy rolls,
mints, drops
Novelties/
seasonal
Candy & Snacks Snapshot
Share of Dollar Sales
2020
2020
% change
% change
$50,549
$43,150
$17,735
$4,349
$115,783
2.5% -3.3%
3.1%
0.1%
0.3%
$7,590
$6,479
$2,663
$653
$17,385
1.7% -4.1%
2.3% -0.8% -0.5%
Sales per Store
Industry Total
(in millions)
Candy
Salty snacks
Alternative snacks
Packaged sweet snacks
Total
The candy and snack categories posted a combined decline in industry sales of 0.5 percent, dragged down by salty snacks, even as candy and alternative snacks earned increases.
Category Analysis: Salty Snacks
2020
2020
% change
% change
$10,729
$8,238
$4,755
$4,476
$2,184
$1,812
$1,792
$1,718
$7,446
$43,150
-3.3% -1.5% -11.0% -1.7% -5.3% -4.1%
2.0% 0.0% -2.2%
-3.3%
$1,611
$1,237
$714
$672
$328
$272
$269
$258
$1,118
$6,479
-4.2% -2.3% -11.7% -2.4% -6.1% -4.8% 1.2% -0.6%
-2.9% -4.1%
AVERAGE SALES PER STORE
Industry Total
(in millions)
Potato chips
Tortilla/corn chips
Nuts/seeds
Puffed cheese
Mixed
Crackers
Popcorn (ready-to-eat)
Pretzels
Other salty snacks
Total
Among the various salty snack segments, only popcorn managed
to post an increase in industry
sales at 1.2 percent.
Despite a decline in sales, potato chips remains the category leader with about one-quarter share of both dollar sales and unit volume.
Salty Snacks Share by Segment
Dollar Sales
Unit Volume
24.9%
19.1%
11.0%
10.4%
5.1%
4.2%
4.2%
4.0%
17.3%
26.8%
22.6%
13.6%
10.2%
5.4%
5.5%
3.8%
4.0%
8.1%
Potato chips
Tortilla/corn chips
Nuts/seeds
Puffed cheese
Mixed
Crackers
Popcorn (ready-to-eat)
Pretzels
Other salty snacks
Percent change
in total sales
Percent change in total unit volume
Margin
percentage
Share of
in-store sales
Five-Year Trend: Salty Snacks
-4.1%
2.9%
3.6%
4.5%
4.4%
-10.5%
-0.5%
-1.1%
-1.9%
1.1%
38.16%
38.30%
38.05%
37.86%
36.60%
2.67%
2.85%
2.87%
2.81%
2.74%
After several years of slight but steady increases
in share of in-store sales, salty snacks in 2020 dropped back to its lowest share in five years.
2020
2019
2018
2017
2016
Category Analysis: Alternative Snacks
2020
2020
% change
% change
$11,988 $3,849 $1,372 $526
$17,735
11.7% -15.1%
4.3% -15.3%
3.1%
$1,800
$578 $206 $79 $2,663
10.8% -15.7%
3.5% -16.0% 2.3%
AVERAGE SALES PER STORE
Industry Total
(in millions)
Meat snacks
Health/energy bars
Granola/yogurt bars
Other alternative snacks
Total
Meat snacks — with an assist from granola/yogurt bars — saved the year for alternative snacks, contributing to a
2.3 percent increase in industry sales despite
double-digit declines from health/energy bars and other alternative snacks.
ALTERNATIVE SNACKS
Alternative Snacks Share by Segment
Dollar sales
Unit volume
67.6%
59.1%
21.7%
28.3%
7.7%
8.3%
3.0%
4.3%
Meat snacks
Health/energy bars
Granola/yogurt bars
Other alternative snacks
Meat snacks' 11.7% increase in per-store sales for 2020 led to a 7-point increase in the segment's dollar share and a 1-point increase in its unit share.
Percent change
in total sales
Percent change in total unit volume
Margin
percentage
Share of
in-store sales
Five-Year Trend: Alternative Snacks
2.3%
1.8%
2.8%
1.4%
6.0%
-4.8%
-0.1%
-1.2%
-1.8%
3.8%
43.77%
44.43%
43.41%
44.09%
43.70%
1.10%
1.10%
1.11%
1.10%
1.11%
Relatively strong sales for meat snacks and
granola/yogurt bars helped alternative snacks
maintain its share of in-store sales in 2020.
2020
2019
2018
2017
2016
The Consumer View
Candy & Snack Purchase Frequency Today vs. Pre-Pandemic
Source: Convenience Store News 2021 Realities of the Aisle Study
More
Less
About the same
More
Less
About the same
17%
62%
21%
22%
64%
14%
Candy
Packaged Snacks
More shoppers have cut back on their
c-store purchases of candy than of
packaged snacks during the pandemic.
Millennials are the most likely to say they have increased their purchases since the pandemic of candy (25% are buying more) and packaged snacks (33% are buying more).
Candy, gum or breath freshener
Packaged salty snacks
Packaged sweet snacks
Snack packs
Meat snacks
Nuts/trail mix
Energy/nutrition bars
34%
31%
29%
24%
18%
14%
9%
-7 pts
-6 pts
-7 pts
-11 pts
-10 pts
-5 pts
-8 pts
Year-
over-Year
Comparisons
Candy & Snack Products Purchased at
a Convenience Store in Past Month
Source: Convenience Store News 2021 Realities of the Aisle Study
Retail Channels Where Shoppers
Purchase Candy & Snacks in a Typical Month
Candy
Packaged snacks
52%
44%
C-store
Grocery
Mass
Specialty/
natural
Discount
supermarket
Club
Dollar
Drug
Online
Other
52%
30%
46%
29%
42%
6%
9%
8%
13%
9%
13%
19%
18%
11%
8%
4%
2%
1%
3%
Despite year-over-year declines seen across all segments, candy/gum/breath fresheners, salty snacks and sweet snacks are the three most widely purchased
food items at convenience stores.
Source: Convenience Store News 2021 Realities of the Aisle Study
Convenience leads as the store type where consumers most purchase candy/gum. However,
for packaged snacks, convenience trails grocery stores and is just slightly ahead of mass stores.
Millennials
Pandemic-driven shifts in shopping, working and social
routines prompted extraordinary change for the candy and snack categories at convenience stores. Consumers turned to these products to boost their emotional well-being and as a way to provide comfort during the uncertain times. In this special “Deep Dive” report, a bonus supplement to the Convenience Store News 2021 Industry Report, we present exclusive data and analysis of the candy and snack categories.
Candy
43.6%
Salty Snacks
37.3%
Alternative Snacks
15.3%
Packaged Sweet Snacks
3.8%
Candy and salty snacks continue to dominate
with overall category sales share topping
80%
— although candy
now holds a 6.3-point lead in share over
salty snacks.
PRODUCED BY
51%
and Gen X shoppers
45%
opt to purchase packaged snacks at convenience stores vs. other retail channels more than the average.
