Despite inflation driving up prices and shrinking unit sales in snacks and candy, consumers continue to indulge – impulse purchasing, seeking comfort and discovering new favorites online and in-store, according to a report that Acosta Group shared during the Sweets & Snacks Expo in Indianapolis, Ind., earlier this month.
Inflation has fueled price increases across major snack and candy categories in Q1 2025. Unit prices for fruit snacks, frozen baked goods, chocolate candy, frozen desserts, protein/nutritional bars, dried meat snacks and nuts rose YoY an average of 14 points, while dollars spent increased 12 points, per Acosta Group data. However, units declined by 2%. Candy followed a similar trajectory with confections, chocolate, mints and gum increasing by 14 points in price and 12 points in sales, with a 2% dip in units.
Despite this, certain products are bucking the trend. Frozen specialty desserts surged 45% YoY, while marshmallows increased by 25%, lollipops 8%, and candy corn 15%, per Acosta Group. One standout is Nerds Gummy Clusters, named the top candy in the 2022 Product of the Year awards where YTD sales climbed 125%, and unit sales up 75%.
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Shoppers still treat themselves
While budgets are tighter, shoppers are not skimping on everything. Half admit they will splurge on certain items to treat themselves or their family, and 68% describe snacks as comfort foods that help them feel better, according to Acosta Group.
“The No. 1 influence is something looked good or made them crave it or the packaging was bright and colorful,” said Kathy Risch, SVP of shopper insights & thought leadership at Acosta Group.
“With snacks and candy, there is this impulsive ‘I see it, and I have to have it,’” said Risch.
Retailers are capitalizing on this impulse behavior.
“In store is where the discovery is happening most,” Risch added. “The physical store is the No. 1 source for those ideas – not to mention the impulse buy.”
Who is snacking and why
More than half (67%) of shoppers snack daily – with the highest percentages among males (69%), Millennials (71%), households with kids (71%) and Hispanics (70%). Almost all (98%) of US households purchased salty snacks in the past year. Chocolate candy bars, candy-coated chocolate, chocolate-covered gummies, salty snacks (i.e. potato chips, tortilla chips, pretzels, cheese curls/puffs), fresh fruit and baked goods remain perennial favorites, according to the report.
Millennials, while frequent snackers, lean toward healthier options. Top picks include granola/cereal bars and protein/nutritional bars.
When selecting snacks, taste is the most important factor, followed by good value, promotions, availability and family preferences, per Acosta Group.
In candy, shoppers prioritize taste, but also value high-quality ingredients, favorite brands and trusted names.
Consumers define healthy snacks as products with less sugar, clean ingredients, natural/organic sourcing, high protein and lower fat, according to the report. Millennials focus more on clean labels and protein content, while Boomers prioritize reduced sugar, fat and calories. Among natural/organic snacks, fruit, yogurt, and nuts lead the pack.
Retail media and the power of discovery
What are retail media networks?
Retail media networks (RMNs) are digital platforms created by retailers that allow brands to advertise directly to shoppers via the retailer’s owned channels (e.g. websites, mobile apps, in-store screens and digital receipts). RMNs leverage the retailer’s first-party data to target ads catered to shoppers’ preferences, behaviors and purchase histories that deliver measurable advertising.
Retailers are becoming a source of discovery for shoppers, with consumers shopping on the retailer’s website rather than searching directly on Google, Risch said.
Digital and physical retail media play different but complementary roles.
Of the retail media networks, “Amazon probably has some of the better content,” for brands, said Cody Tusberg, EVP, digital commerce and retail media services, Acosta Group.
“We see the incremental benefits of just investing in your digital shelf first, before you actually start spending money. It is a monumental difference,” Tusberg explained.
“From a CPG grocery [perspective], sometimes up to 60% of the attributed transaction to an advertising campaign that we run through Amazon ads actually happen somewhere else,” Tusberg explained.
“They discover the product, they search for the product,” and “they bought it at their local retailer, or they bought it at mass, or they bought it at club,” he added.
Understanding shopper journeys across channels
Consumers are now shopping across grocery, mass, club, dollar, convenience and drug channels.
Healthier snacks like pretzels and fruit are mostly purchased at grocery stores, while beef jerky, granola bars and nuts are frequently bought at club stores, according to the report. Dollar stores dominate for items like candy bars and lollipops.
“People are shopping across channels, too,” said Risch. “If you are a small brand, it is even harder. You have to be very choiceful to make sure you are spending your money in the most effective way with retail media.”
