What are Americans giving out to trick-or-treaters this year? We talked to snacks & candy users across the U.S. to learn more about their 2024 candy choices.
This July, fans of the Reese’s Peanut Butter Pumpkins were offered a delightful surprise: for the first time ever, the seasonal treat was made available ahead of the Halloween season through Hershey’s online store. The brand announced in a press release: “You may be thinking, 'It’s too soon to celebrate Halloween, right?' Well, when there’s Reese’s involved, it’s never too early.”
When it comes to confectionary sales, embracing this year’s “Summerween” trend makes a lot of sense. Seasonal shopping matters to chocolate and candy brands. A 2023 report from the National Confectioners Association found that 64% of total chocolate and candy sales in the US can be attributed to the big four seasons: Valentine’s Day, Easter, Halloween and the winter holidays. With the global cocoa bean shortage driving up the price of cocoa, price-conscious consumers are buying less—and chocolate brands are struggling to meet sales expectations. In fact, earlier this year, both Hershey’s and Cadburys issued statements calling out the cost of cocoa and sugar as their biggest challenges this year, with Hershey’s President and Chief Executive Michele Buck warning that the company expected limited earnings growth in 2024.
Research shows that price is an important driver of consideration when buying Halloween candy, along with taste, user experience and brand familiarity. American’s want to buy their favorite Halloween candy from the brands they know and love at a fair price. With 57% of shoppers planning to spend the same amount as they did last year on Halloween candy, how will their decision making be impacted should their budgets not stretch as far this year?
Considering the rising cost of cocoa and the implications this crisis has had on the chocolate industry, we wanted to know: will chocolate brands maintain their staying power this Halloween despite a higher price point? And with chocolate companies passing on rising costs to consumers, how can candy brands make the most of the call for no- and low-cocoa candy alternatives?
While gummy and chewy candies are a popular choice, chocolate is still the most purchased Halloween treat, with 58% of shoppers planning to purchase fun-sized chocolate bars for Halloween.
Taste, User Experience, and Brand Familiarity drive consideration in the candy category. Shoppers share that top non-chocolate candy brands like Skittles, Sour Patch Kids, and Nerds have comparable user experience and brand familiarity to top chocolate brands. However, when it comes to taste, chocolate brands deliver where non-chocolate candy brands do not.
When asking candy shoppers across the U.S. about their favorite candy brands, Reese’s stood out as the top brand, with 53% of Americans naming it as one of their top-three favorite candies. Reese’s fans tout the brand’s “perfect ratio of chocolate and peanut butter,” and “perfect amount of sweet and salty” flavor as key reasons why they love the brand.
Non-chocolate candy brands like Sour Patch Kids and Skittles are more divisive than their chocolate competitors. Sour Patch Kids and Skittles see about a 53% and 49% drop in taste perception respectively between Brand Users and Brand Non-Users. On the other hand, chocolate brands like Reese’s (37%), Snickers (31%), and even Hershey’s (40%), which has drummed up many a debate about its milk chocolate flavor over the years, see less of a difference in taste perception.
In addition to taste, user experience plays a big role in crowded categories like the candy category. Distribution influences which products people turn to when choosing their Halloween candy. Fans of Reese’s Peanut Butter Pumpkins may have flocked to Hershey’s online store this past July, but most shoppers are looking for candy options that are easy to find in stores. It’s important for candy brands to consider what type of presence they have wherever people are shopping: be that online, on the shelf, or at the checkout counter.
Shopping experience is just one factor that comes into play when looking at user experience. Packaging can push shoppers away from brands that are otherwise great tasting and easily accessible. Brands that are easy to unwrap and easy to eat may find themselves at an advantage against brands whose products are difficult to open, stick to their wrappers, or are messy to eat.
Non-chocolate candy brands Skittles and Nerds have different user experiences based on their packaging and product size. Shoppers see Skittles are an easy to grab, candy option. Their packaging is easy to open, and the size of the candy itself creates very little, if any, mess. Nerds tend to come in a small box that is difficult to get the product out of without shoppers pouring it into their hands or right into their mouths. Shoppers see Nerds as a less accessible candy option due to its poorer user experience.
Brand familiarity is more than just brand awareness—and it’s a powerful tool that gives top candy brands staying power. The top brands in the candy category all have high logo awareness, but what really drives brand loyalty is personal experience with the brand.
Shoppers are partial to the brands they grew up with. With the rising cost of chocolate in particular, shoppers may be hesitant to spend money on new products or brands. Instead, they are looking for brands that they already trust to offer a consistent taste and user experience.
There is also an emotional component to buying familiar brands that shouldn’t be overlooked. Candy brands with consistent taste and packaging can trigger feelings of nostalgia, driving positive associations with those brands:
Brands in the candy category can struggle to stand out on a crowded shelf. Shoppers comment that “there aren't that many unique things out there. Lots of versions of everything exist,” and “there are only so many combinations of candy and they’re all pretty much the same.”
In the chocolate world, Reese’s and Hershey’s are two of the top brands delivering something different. Shoppers emphasized the iconic nature of these brands. Hershey’s packaging is uniquely memorable with a classic feel. Reese’s sets itself apart by releasing festive candy shapes to go along with various holiday seasons.
Sour Patch Kids is one of the top non-chocolate candy brands known for offering something unique. Similar to Reese’s, their distinctive candy shapes can’t be replicated by other sour candy brands. Their commercials, content, and slogan (“Sour. Sweet. Gone.”) have helped them build a memorable brand.
Above all else, all three of these brands have a unique taste that no other brands can replicate. Hershey’s Brand Users and Brand Non-Users call out that—whether they like it or not—Hershey's chocolate tastes different than other brands. Reese’s Brand Users share that the brand offers a unique blend of chocolate and peanut butter and chocolate—one that other brands may attempt, but can’t seem execute at the same level as Reese’s. Sour Patch Kids’ sour-then-sweet flavor sets them apart from other sour candy brands.
Chocolate is here to stay. But non-chocolate candy brands have a unique opportunity to attract price-conscious consumers who are looking to spend about the same (or even less) on Halloween candy as they did last year.
Taste plays a significant role in shoppers’ purchasing decisions. 2024 is an exciting time for innovation in the candy category. Chocolate brands are finding new ways to reduce cocoa in their products, like in Reese’s new vanilla peanut butter cups and KitKat’s new cinnamon-flavored “ghost toast.” When it comes to non-chocolate candy, perception of taste is more divisive. However, that shouldn’t dissuade brands from releasing new flavors and products during this era of innovation in the candy category.
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