Candy continues to thrive as an affordable indulgence.
Omnichannel growth, pack-price flexibility, flavor and format innovation, smarter seasonal planning and new cultural tie-ins are all helping brands and retailers keep the category relevant, according to Circana’s July 2025 shopper survey.
The data was presented by Circana’s global EVP and Chief Advisor, Sally Lyons Wyatt and National Confectionery Association’s Principal of Client Insights, Daniel Sadler during the State of the Candy Industry: 2025 webinar earlier this month, with five key takeaways for brands and retailers.
Omnichannel is the new baseline
Even as e-commerce continues to grow, brick-and-mortar still drives discovery, Lyons-Watt said.
“Online is growing fast, but in-store is about engaging and exciting consumers because they can touch and feel when they’re walking down the aisle,” she said. “You want to invest in digital platforms to capture the growing market, but you also need to make sure the physical store sparks excitement.”
Data from Circana shows omnichannel buyers are boosting sales. Consumers shopping both online and in-store spend nearly twice as much on candy compared those who shop only in-stores, according to the report.
Value rules – but premium still matters
Candy dollar sales are up 3.1% year-over-year to $40 billion, while unit sales slipped 1.6% to $13 billion per Circana Point of Sale total US MULO data in the 52-weeks ending July 13, 2025. The category shows growth along with others in grocery aisles, including dairy and snacks, which are up 11.8% to $98 billion in dollar sales and 1.2% to $74 billion, respectively.
Lyons-Wyatt advised that brands and retailers may need to offer “smaller, more affordable options” to provide relief for budget-constrained consumers.
“But don’t lose sight of the fact that people will still trade up for the right experience,” especially since premium and seasonal-limited edition offerings are growing, she added.
Other segments experienced growth in sales despite falling short in unit sales during the same time frame, per Circana. Chocolate candy dollar sales climbed 3.1% to $22 billion despite a 1.7% drop in units to $6 billion; non-chocolate candy mirrored overall growth, up 3.1% to $13 billion while units fell 1% to $5 billion; and gum saw a 1.7% rise in dollars to $4 billion, with unit sales down 2% to $1 billion.
Innovation is fueling energy
Innovation remains a driver of incremental growth for confections, as seen with the rapid rise of texture-forward products like freeze-dried candy which became one of the fastest-growing formats, Lyons Wyatt said.
Retailers that invested in non-chocolate innovation outpaced those that didn’t, Sadler pointed out.
“That innovation is what brings excitement back to the category,” he said. Flavor-driven launches tied to occasions – such as football-themed gummies – or products that play with texture – like Dubai chocolate – are helping brands stay relevant, he added.
Seasonal planning requires new timing
Holiday performance varied sharply by occasion, per the report.
Valentine’s Day dollars and units were both down, partly because consumers went out to eat rather than shopping for treats; whereas Easter delivered strong growth in dollars and volumes thanks to a longer selling season, Sadler explained.
The other two major candy holidays, Halloween and Christmas, experienced more purchases in the last two weeks of the holiday window.
“We really need to start earlier and keep consumers engaged from Halloween through the holidays,” Sadler challenged.
Lyons-Wyatt added that a layered approach works best: “You can’t rely on just one burst. You have to plan pre-, during and even post- holiday to maximize returns.”
Everyday moments extend candy’s reach
Beyond the big four candy holidays, new events are creating momentum.
Social media–driven ‘in-between’ holidays like Summerween –Halloween’s summer cousin – are inspiring brands to build early buzz for traditional events. For example, including countdown campaigns like Mars’ Halfway to Halloween countdown that launched on April 30, 2025, featuring a lineup of seasonal favorites.
National Candy Month in June saw growing engagement from both retailers and influencers, while everyday moments like football season and Cinco de Mayo also are being used for confectionery connections, according to the speakers.
“This is a way to surprise and delight, and allow consumers the affordable luxury they know and love in a way that still fits their constrained budgets,” said Lyons-Wyatt. “Retailers should highlight candy as a key product to drive foot traffic and increase basket size.”