The 2024 National Confectioners Association’s Sweets and Snacks Expo wrapped up last week in Indianapolis. Among numerous innovative new product launches, educational sessions, and an overall celebration of everything snack-related, three trends emerged:
- “Toyification” of snacks marketing;
- Emoting flavours; and
- Widening snacking occasions beyond the traditional.
“Toyification” of snacks marketing
The marketing cycles of the toys and games industry have long been tied to entertainment franchises and film release schedules. This has not quite been the case for snacks which enjoy a more structured promotional calendar centred around holidays associated with confectionery consumption. However, a leading trend at the expo was the “toyification” of snacks marketing. This means that more brands are licensing entertainment and video game characters prior to major launches to increase brand sales. And licensing allows brands to either expand on their current value propositions or expose new ones.
Most prevalent at the show were Mario Kart, Minecraft, Barbie, and Harry Potter (among others), all of which have a large fanbase invested in the suite of products associated with them. This shift in marketing bears a high upfront cost of creating those limited-edition SKUs well before the licensed franchises debut their films/games/TV shows. In addition, products need to be on shelves exactly on premiere day, usually for a limited window of a few weeks.
Note: Give & Go gingerbread kits – most of which use licensing of popular franchises
Note: From the Pez candy booth – aligning their varieties with popular children’s animated characters
Emoting flavours
Continuous innovation in snacks is needed to prevent large category trade-off. The number of tracked new snack product launches in the US was up by 27% in Q1 2024 (vs Q1 2023) as innovation is now a prioritised strategy for snack manufacturers. Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey (January- February 2024 reveals that 38.6% of Americans enjoy trying new taste and food combinations, suggesting rising flavour combinations like “swicy” (sweet and spicy mix) will be a hit. But beyond that, what was unique about the innovations and atmosphere at the Sweets and Snacks Expo 2024 was the introduction through marketing of the cultural meaning and emotions evoked by certain flavours.
Efforts to connect cultural significance or emotion with new snack launches have become much more important for the industry as it is set to serve increasingly diverse generational cohorts
Source: Euromonitor International
In part, this shift in marketing can be seen as a response to the rise of GLP-1 drugs which suppress appetite amongst users. To not lose GLP-1 users, the industry is hoping that connecting a flavour to an emotion can increase the chances that those consumers will continue to shop for confectionery – even if at a reduced volume or frequency. Among the emotional connections featured at the show were nostalgic flavours, which vary by culture and society, delightful flavours, which combine contradictory taste elements to create a sense of surprise in the eater, and “functional feels like energising” flavours, which consumers seek out as the return to offices grows and life resembles pre-COVID routines more.
Expanding “seasonal” snack occasions
Core holidays are key for confectionery sales in the US. For example, seasonal chocolate volumes have been performing better than non-seasonal chocolates for several years, due in part to a rebound in holiday gatherings following COVID-19 and the resilient value of treating during these times. Now, the industry is looking to grow sales outside of the major four confectionery holidays (ie Halloween, Christmas, Valentine’s Day and Easter). In the age of high inflation and rising food prices, those snacks that fall into the indulgence category (unlike, for example, staple foods) are increasingly shifting to special occasions, increasingly aligned with celebrations and holidays.
As with the trend towards creating more occasions through film and video game entertainment calendar releases, there is also a push to create and promote products catering specifically to smaller holidays like Mother’s Day, Father’s Day, Labor Day, St Patrick’s Day, and others that traditionally have not been big events for snacks. Furthermore, the National Confectioners Association is promoting June as US National Candy Month to capture and capitalise on the relationship between special occasions and snacks in the summer.
A unique aspect of this trend requires finding reasons to celebrate with snacks. Some celebrations bring a need for personalisation, such as Oreo graduation gifts. These also seek to increase consumer engagement for seasonal and celebratory occasions outside of the traditional calendar. And recently launched products like Chocolove’s Xoxox Salted Caramel Hearts extend beyond just the traditional, romantic Valentine’s occasion. Featuring floral packaging and complex flavour, this snack is positioned for self-treating, non-romantic gifting occasions and other occasions around the spring months.
New challenges prompt creative solutions
As the snack industry is facing inflation challenges as well as novel developments like the expansion of GLP-1 drugs, manufacturers are revisiting their marketing and innovation strategies to thrive in a complex environment. “Toyificated” marketing, emoted flavours, and expanded snack occasions are all strategies aimed to satisfy the social, emotional, and taste needs of consumers.
Download Euromonitor’s new briefing, Competitor Strategies in Snacks 2024, for more in-depth trend descriptions, case studies and strategic recommendations.