The latest State of Treating Report 2025 from the National Confectioners Association (NCA) reveals that, despite economic pressures, US consumers are still making room for indulgence.
While the demand for classic treats remains strong, a growing number of shoppers are exploring better-for-you (BFY) confectionery – products that aim to balance indulgence with healthier alternatives. From dark chocolate to organic sweets and reduced-sugar options, the category is gaining traction. However, while awareness is rising – 62% of consumers now recognize BFY confectionery – actual purchasing habits tell a different story, with only 10% frequently opting for these so-called healthier treats in 2024.
Offering consumers various portion size options and resealable packaging creates significant consumer appeal and forms an effective part of many brands’ BFY strategy. Based on NCA’s data, confectioners that balance classic confectionery collections, novel launches and consumer-defined functional formulations will maximise engagement and sales opportunities.
Problems with BFY uptake
For manufacturers to produce BFY products that resonate with shoppers, they need to overcome two core challenges. According to global flavour and food ingredients company IFF, the first of these is a mindset around balancing indulgence with health.
Almost half (49%) of European consumers believe indulgent F&Bs are not healthy. However, 81% also agree that indulgence is important for mental health, and 73% state indulging is a way to support emotional balance.
Brands big in the BFY space
● In April 2025, Justin’s is debuting new chocolate candy bars, tapping into the permissible indulgence trend. It aims to appeal to consumers’ calls for textured and sweet treats in the better-for-you healthier alternatives segment.
● Hotel Chocolat-owned Cartwright & Butler has released its latest NPD, the Chocolate Coated Indulgence range. Launching its luxurious chocolate-coated mini treats collection, the brand sourced its chocolate and cocoa from Belgium and the UK. Hotel Chocolat hopes to add to the healthier alternatives category by combining indulgent chocolate with nuts and ginger.
● In January 2025, Fulfil Nutrition debuted three core innovations to complement its latest product selections. Fulfil Nutrition strives to appeal to consumers looking for better-for-you, functional confectionery.
Secondly, there is also a significant difference between what consumers say they want and what they buy at the tills. While shoppers may state they want natural confectionery products, with fewer indulgent ingredients and healthier alternatives, their purchasing and consumption patterns continue favouring more conventional products.
Although consumers are actively looking for items with reduced sugar or sugar-free claims, there’s a gap in attitudes and behaviours. Subsequently, shoppers may consume more sugar than they think they are. By replacing ingredients, lowering portion sizes and clearly communicating the sugar content within formulations, brands can appeal to consumers’ BFY needs.
BFY spans multiple trends
With greater BFY uptake anticipated in 2025, brands are also entering various areas within the category to reach a wider confectionery demographic and meet their needs.
1. Removing artificial ingredients
Many consumers are opting for products with reduced sugar and natural ingredients.
Take Swedish firm Tweek which has established a firm foothold in the Nordics market. It’s candies contain 95% less sugar than equivalent non-BFY sweets as well as added fibre, and all-natural colours and flavourings.
It’s a tactic followed by UK-based start-up, Yumma, which sells fruit-flavoured gummies made with real juice and fruit pieces.
Statistics show these firms are on to something with Nielsen data revealing that fruit confections are growing 17% year-on-year.
Fruit isn’t just showing up in chews and candies, it’s giving a healthy halo effect to chocolate SKUs too. Cadbury’s for example, has introduced three non-HFSS products to its Cadbury Dairy Milk Fruitier & Nuttier portfolio.
2. Adding protein
Formulating with functionality is dominating the BFY segment, with high protein-based snacks leading R&D. There has been a change in protein bars’ positioning, moving from a sport-based product to a tasty and convenient one that aims to support an active and balanced lifestyle.
The acquisition of Fulfil Nutrition by Ferrero in 2022 is a good example of this and represents the confectionery major’s commitment to diversifying in this area.
3. Overall wellbeing
As well as removing artificial ingredients and adding protein, confectionery innovators are beginning to tackle more nuanced consumer needs, such as sleep, stress, immunity and mental health.
One firm that’s leaning heavily into this trend is UK-based chocolatier, Wizards Magic. As well as a range of bars containing 0% sugar, the brand has developed bars with added matcha and CBD for relaxation, chamomile and lavender for sleep, lion’s mane for mental clarity and acai for detoxification.
Products such as these which reflect consumers’ prioritisation of immunity, strong mental health and emotional wellbeing can fall into the permissible indulgence category – and often at a higher price point.
