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Gummy Candy Market | US Forecast

Delivered May 7th, 2019. Contributors: Suparna, Sarah D. and

Part
01
of two
Part
01

Gummy Candy Market Size

After thorough and exhaustive triangulation, we could arrive at the current size of the US gummy candy market to be around $1.26 billion growing at a CAGR of 4.53%.

Methodology

We commenced our research by scouring online statistical portals including Statista for the requested information. However, this research strategy was not successful as it provided global confectionery market size and in addition to this, the report was paywalled. As a second research strategy, we decided to look for industry reports such as MarketsandMarkets, Transparency Research, etc. Nevertheless, this research strategy also proved futile because these reports were paywalled.

Finally, we decided to broaden our avenues of information and began searching for information on the articles, blogs and other publications of NCA or National Confectioners Association. Fortunately, we located 2016 US gummy candy market size to be around $1.1 billion and the CAGR (2013-2016) was 4.3%. This finding was instrumental in deciding our research path ahead. Upon further investigation, we located another report that stated the 2016 US candy market size to be over $12.73 billion. In addition to the above finding, we also came across a report that mentioned that the 2025 US candy market size is expected to be $19.6 billion, CAGR 5.1%. These available data points led us to think of a creative strategy to arrive at the 2019 US gummy candy market size.

Triangulation strategy

Since we know in 2016 US gummy candy market size was $1.1 billion and 2016 US candy market size is $12.73 billion, we can calculate the ratio of the two. Then we find the 2019 US candy market size by back/reverse calculating from the 2025 US candy market size and CAGR and use that ratio obtained as a proxy to calculate the current size of US gummy candy market.

Step 1: We calculate the 2019 US candy market size from the available data points of 2025 US candy market size and CAGR by using the following formula:

CAGR=(End Value÷Start Value)^(1÷number of years)-1

Now we input the available values to arrive at the 2019 US candy market size
 5.1%=(19.6÷X)^(1÷6)-1
or, 1.051^6=19.6÷X
or, X=19.6÷1.051^6=19.6÷1.3478=14.54

So, the 2019 US candy market size is $14.54 billion.

Step 2: We calculate the 2019 US gummy candy market size by using the following formula:

2016 US gummy candy market size÷2016 US candy market size=2019 US gummy candy market size÷2019 US candy market size
or, 1.1÷12.73=2019 US gummy candy market size÷14.54
or, 2019 US gummy candy market size=14.54x1.1÷12.73=1.26

Thus, the current market size of the US gummy candy market is $1.26 billion.

Now, we calculate the CAGR over the 3 years (i.e., 2016 to 2019) using the below formula:

CAGR=(End Value÷Start Value)^(1÷number of years)-1
=(1.26÷1.1)^(1÷3)-1
=0.0453
=4.53%
Thus, the predicted future growth rate is 4.53%
Part
02
of two
Part
02

US Gummy Market Insights

Our research team has provided you with insights below regarding the United States' gummy candy market. We have included information regarding market share, key players, new market opportunities, challenges, and consumers' preference for gummy candy below. We hope that you find this information beneficial.

CHEWY CANDY HAS A 51% market share

Chewy candy had a 51% market share of the non-chocolate market in the United States, as of 2017. The top 10 players in this market included Skittles, Starburst, private label, Sour Patch Kids, Haribo Gold Bears, Lifesaver Gummies, Airheads, Trolli Sour Brite Crawlers, Swedish Fish, and Airheads extreme. Licorice had a 7% share in the US non-chocolate market.

Key players

According to a recent study, non-chocolate sales grew faster than chocolate in the first half of 2017. Top companies in the chewy candy portion of the non-chocolate market were Wrigley, Mondelez, Ferrra Candy, private label, and Haribo.
  • Wrigley's top seller was Skittles with $158,700,464 in sales, in the first half of 2017.
  • Mondelez's top seller was Sour Patch Kids with $99,596,088 in sales, in the first half of 2017.
  • Ferra Candy's top seller was Trolli Sour Brite Crawlers with $60,961,848 in sales, in the first half of 2017.
  • Haribo's top seller was Haribo Gold Bears with $74,569,384 in sales, in the first half of 2017.

NEW market opportunities

Trends that are driving the growth of the gummies and chewy candy market, in the United States, include the preference for healthier snacks, organic candy, and an increase in demand for chewy candy than gum. Gummies and other chewy candy are rising in popularity among Millennial consumers. Gummy candy products are being developed with healthier ingredients to make them a healthy alternative to high-fat snacks such as chocolate and potato chips. Many consumers are switching from chewing gum to chewy candy. New flavors have become increasing popular to consumers.

Challenges facing the market

 Issues and challenges that are faced by the United States' gummy candy market include the increasing demand from consumers for sugar substitutes, the increased price of sugar, increased health concerns related to diseases like obesity and diabetes, and the new FDA regulation on added sugar. The new FDA Regulation on added sugar requires manufacturers to list the added sugar content separately in both grams and the daily value on all products.

consumers' preference for 'clean' candy

Parents are always concerned about their children's health and do their best to ensure that their children consume clean food, including candy. Consumers today are leaning heavily towards maintaining a health-conscious lifestyle and seek indulgences that specifically meet their needs. In the United States, chewy candy manufacturers are delivering products that satisfy both their demand for organic treats and taste, such as Mount Franklin Foods' Sweet Valley Organics product — Chewy Bananas. According to a report published by Candy Industry, consumers are increasingly opting for organic non-chocolate candy like Mount Franklin Foods' gummy worms, peach rings, starlight peppermints, and gummy bears that do not contain artificial flavors and colors.

With the trend of health and wellness at its peak, the gummy market is redefining itself with novel and functional gummy candy. It was found that nutraceutical gummies have become popular among adult consumers as an alternative to nutritional supplements, providing them with the necessary nutrition and taste. According to TNA Solutions, in the United States, the sale of gummy candy products increased by over 25% since 2015. This growth was found to be driven by both kids and adults of all ages. Trends show that American consumers prefer chewable and gummy candies over other types of candy/chocolate.


Sources
Sources
From Part 01

From Tiny Bears To Market Giants The Gummi Segment Is Growing

candyusa.com
Publication Year: 2016
Quotes
  • "The overall $1.1 billion (measured retail sales) gummi segment is currently experiencing unprecedented growth,” says Jill Manchester, senior vice-president of marketing and brand strategy for Ferrara Candy Co., Inc. She explains the sector had a compounded annual growth rate of 4.3 percent during the past three years."

Smarties re-enters ‘strong’ gummies segment with Ford Gum

confectionerynews.com
Publication Year: 2017
Quotes
  • "The Black Forrest and Trolli maker leads the US gummies market with a 20% volume share. The CAGR (2013-2016) of US gummies market is 4.3%."

Black Forest Snacks | Organic and Classic Gummies and Fruit Snacks

blackforestusa.com

Ferrara Candy to be acquired by Nutella maker Ferrero

chicagotribune.com
Publication Year: 2017
Quotes
  • "Ferrara Pan started in Chicago in 1908; the first product it sold was sugar-coated almonds, popular at Italian weddings. It says it is now the largest nonchocolate candy-maker in the United States with more than $1 billion in annual sales."

The Candy Papers: Confectionery industry year in review 2017

confectionerynews.com
Publication Year: 2017
Quotes
  • "The growth rate of US gummies market remains flat at +0.9%"

U.S. Candy Market Size & Share | Industry Analysis Report, 2018-2025

grandviewresearch.com
Quotes
  • "U.S. candy market was valued at over USD 12.73 billion in 2016 and is expected to witness an attractive growth over the forecast period."
  • "US non-chocolate market grew from USD 5.76 billion in 2014 to USD 5.92 billion in 2015"

U.S. Candy Market Size Worth $19.6 Billion By 2025 | CAGR: 5.1%

grandviewresearch.com
Quotes
  • "The U.S. candy market is expected to reach a value of USD 19.6 billion by 2025, according to a new report by Grand View Research, Inc. "
From Part 02

The German bear: Which brand is helping US sugar confectionery outpace chocolate?

confectionerynews.com
Publication Year: 2018

United States Chewy Candy Market 2017-2021 - Trends & Developments, Issues & Challenges and Industry Norms & Regulations

prnewswire.com
Publication Year: 2018
f

FDA "Added Sugar" New labeling

fda.gov
Publication Year: 2018
s

Skittles Demographics and Consumer Insights | Numerator

snapshot.numerator.com
Publication Year: 2019

Consumers continuing to reach for ‘clean’ candy

candyindustry.com
Publication Year: 2018

Sugar no more - how gummies are reinventing themselves

tnasolutions.com
Publication Year: 2018