Across the cotton candy and marshmallow categories, brands are leaning into nostalgic flavors while experimenting with unique textures, sizes and dietary positioning to stand out in the crowded sweets aisle, as shown during the Sweets & Snacks Expo last month.
Trending flavors in cotton candy include berry, chocolate, strawberry, sugar, grape and raspberry – pointing to a consumer preference for both fruity and dessert-inspired profiles according to Tastewise data from the past year. Similarly, marshmallow flavor trends highlight chocolate, berry, vanilla, toasted marshmallow, sugar and milk, suggesting a strong pull toward creamy, comforting combinations.
In both categories, texture and format innovation play an increasingly important role. Brands are exploring layered and infused flavors, combining crunchy or freeze-dried elements with airy confections to add novelty. From bite-sized marshmallow clusters to freeze-dried cotton candy puffs, the emphasis is on multi-sensory experiences.
Fairy Tale Cotton Candy ramps up natural innovations
With natural formulations in the pipeline and a growing retail network, Fairy Tale Cotton Candy is positioning itself as a forward-looking player in the novelty and specialty confection category.
Family-owned confection brand Fairy Tale Cotton Candy is scaling across major retailers and novelty destinations while doubling down on natural flavor and color innovation to stay ahead of tightening food dye regulations.
The brand is available in retailers like Five Below, CVS, Hobby Lobby, Burlington Coat Factory and candy shops, in addition to destination outlets, like theme parks, Kelly Dettmer, president of Fairy Tale Cotton Candy, explained during the Sweets & Snacks Expo.
The brand’s growing footprint coincides with increased scrutiny of artificial food dyes, as several US states advance legislation to limit or ban certain synthetic additives. Dettmer said the company has been preparing for this shift for years.
“We actually have already been doing all natural flavors,” she explained. “Jalapeño we’ve had since day one, and it’s always been all-natural.”
The company currently offers 22 all-natural flavors, with a goal of converting its entire line – more than 50 products – to all natural by 2026.ç
Converting to natural flavors includes developing proprietary alternatives to synthetic dyes, particularly for its core pink and blue offerings, Dettmer explained.
“For the pink, we are working with beet to create that pink color,” which is vibrant, but not nearly as bright as a synthetic version, she said.
The company is looking to algae and spirulina to create bright blue and green colors, which proves to be a challenge considering these vibrant shades are rare if nonexistent in nature, Dettmer added.
Despite the complexity of reformulating with natural colorants, Dettmer does not anticipate significant cost increases for retailers or consumers as the taste is still “exactly the same” albeit less colorful.
Unexpected flavors deliver unexpected results
Flavor development is led by Dettmer, her sister and their mother – a nimble, trend-driven team who are not shy to experiment with flavor combinations she explained.
Dill pickle in particular is a top seller for the brand, Dettmer noted. The company developed its own spicy pickle and dill pickle cotton candies, as well as similar versions for private label customers.
“We have done so many flavors that have not worked out – ketchup and french fries, pizza, macaroni and cheese,” including an alcohol line like mimosa, piña colada and wine, which were less popular.
Product ideation is guided by customer feedback, flavor trends and on-the-ground insights from industry trade shows.
“Freeze-dried was all the rage last year,” said Dettmer, adding that the company is exploring a freeze-dried cotton candy.