Amid supply chain concerns, crippling cocoa costs and volatility within the wider geopolitical environment, cautious confectionery brands are turning to packaging to hone in on innovations.
In 2024, 20% of new consumer packaged goods in Australia and New Zealand were led by packaging changes, according to market intelligence from Mintel.
“Packaging is no longer just about protection – it’s a strategic tool that can make or break a product’s success,” Mintel says.
1. Marketing opportunities
Consumers’ interest in their favourite chocolate, candy and gum brands does not stop at the brand, product and associated campaigns displayed on digital media. Confectionery packaging itself provides brands with a savvy way to connect with consumers, showcase their identity and unique selling points.
Brands that opt for novel and increasingly popular packaging formats can convey the idea that they’re aware of current trends and actively pursuing them in their new product development (NPD) process. The Grocer’s 2024 new product and packaging awards recognised the Mars Wrigley-owned Skittles brand for its use of sour flavours in its share pouch bag packaging.
Confectionery creators can deploy clever packaging to market to certain demographics. Ferrero-owned Kinder introduced a new packaging format in 2024. The brand’s regular sized bags were created in a new laydown option geared towards parents, their need for convenience and seasonal snacking.
Personalisation is also big in packaging, presenting a strong marketing choice for confectionery brands that want to tap into the leading trend. Gifting in a popular area where personalisation continues to remain strong. Shoppers continue to demand premium chocolate, with DIY designs for gifting offering a bespoke and luxurious feel to consumers’ confectionery purchases. It also proves a clever strategic method for brands who can use their packaging and associated experience as a powerful marketing tool.
Mondelēz-owned Toblerone has launched its new digital platform, providing consumers with a more personalised gifting experience. Embracing the immersive experiential trend within confectionery too, consumers can select from formats, flavours, sleeve messages and personalised messages. M&M’s are also bringing personalised packaging options to US consumers who can create their own designs and messages and Monty Bojangles has also added personalised embossed characters to their new chocolate bars.
Environmental awareness
The arrival of the upcoming European Union (EU) Deforestation Regulation (EUDR) and impending Extended Producer Responsibility rules places further emphasis on how confectioners need to change their operations and packaging priorities. Waste reduction strategies are therefore a key priority for confectioners in 2025.
Today’s consumers view sustainability within packaging as no longer a nice-to-have but a baseline expectation. In response, brands are adopting eco-friendly packaging solutions like minimal-waste options, paper-based, recyclable and compostable packaging varieties that are better for the planet.
Despite cost concerns affecting widespread scalability, the rate of adopting biodegradable packaging is on the rise. Tony’s Chocolonely, Skittles and Smarties have all undergone transitions to more recyclable, paper-based options to keep up with their commitments and keep up with consumer demands.
Global chocolate leader Nestlé has combined elevating their eco-consciousness and credentials with showcasing this directly on confectionery packaging via its sustainable chocolate range. The airport-exclusive range, which comes in a recyclable paper pouch, sought to demonstrate the brand’s position on environmental chocolate production; naming its new SKU, Sustainably Sourced Cocoa. In addition, it also leans into the personalisation trend by giving confectioners the opportunity to add messages to the product sleeves.
Health considerations
Front-of-pack labels are a big selling point for confectioners to attract consumers. Clean label ingredients that highlight a product’s natural ingredients and formulations that avoid artificial additives and preservatives. Natural colour development is one area that’s set for a big push in 2025, particularly following the recent US Food and Drug Administration’s (FDA) ban of Red No.3 food colouring.
Growth in the healthier alternatives space has been slower than expected. Actual consumption habits in 2024 reveal only 10% opt for these confectionery products. Highlighting natural replacements for artificial food on their packaging may help with brand’s perception that they are synonymous with better-for-you confectionery.
Sweet packaging has however come under scrutiny relating to health credentials. Data published by Bite Back, a campaign group led by British chef Jamie Oliver, analysed 262 sweet food goods sold in the UK. Exploring those made by the ten biggest food companies, it assessed those it believed whereby the packaging would appeal to children.
The findings identified that 80% of products analysed used bright colours, lettering and fun patterns to capture children’s attention. Despite their discovery, in its analysis, The Grocer confirms that their results and the move away from marketing with bright, colourful packaging won’t stop sweets being aimed at children.
Confectionery brands need to balance maximising the prime space that product packaging provides and appealing to consumers with valuable information, alongside ensuring their packaging conveys such details in a responsible, trustworthy and credible way.
