Five things you need to know about Sugar Confectionery

1. Sugar confectionery is growing at +3.1% – now worth £665m

2. Premium and value sugar confectionery brands are experiencing double-digit growth

3. Sour tastes and innovation is growing sales

4. Sharing bags make up nearly two thirds of the category – and are growing ahead of it

5. HFSS restrictions continue to buoy sugar-free sales

1. Sugar confectionery is growing at +3.1% – now worth £665m

Warmer weather and sugar confectionery go hand in hand. Whether it’s a summer treat, sustenance for long car rides on holiday, or even for that impromptu garden party or picnic, sugar confectionery is a key category to focus on, especially when the sun is shining.

“The sugar confectionery market is in growth and currently represents 24% of the total confectionery market,” says Susan Nash, trade communications manager at Mondelez. “A focus on fun and innovation is particularly important to the category, as shoppers are always looking for something new and exciting at the confectionery fixture.”

Sugar confectionery is an area that benefits from nostalgia, novelty, fun and colour. “The novelty confectionery category has seen a significant growth in demand and sales. Their attractive prices, playful elements and bold flavours make them stand out on the shelves, encouraging impulse buys,” says Kathryn Hague, head of marketing at World of Sweets.

“We’re encouraging retailers to create dedicated novelty displays in stores that are stocked with exciting novelty lines and that highlight the low price points. Novelty sweets carry a high perceived value, making them excellent sales drivers for pocket money spenders.”

Retailers are seeing first-hand the benefits that come from stocking up on innovative lines. “Sugar confectionery is a big market, and our biggest line is currently Nerds. It started out as an American line, but it’s now available on the UK market and it’s sold really well. We stock two flavours and the Ropes variety, and we sell them at £2.50 – people are happy to pay more,” says Sarj Patel, of Pasture Lane Stores, Sutton Bonington in Nottinghamshire. “Haribo continues to perform well, with sales boosted by their limited-edition lines, but Fangtastics will always be number one for us.”

Back to top

2. Premium and value sugar confectionery brands are experiencing double-digit growth

Looking at price brackets, growth can be found in both value pocket-money-priced lines and premium products, presenting opportunities for retailers to carve out a niche by meeting these needs. “This trend highlights opportunities at both ends of the pricing spectrum, as consumers seek either affordable treats or premium indulgences,” says Storck’s Andy Mutton. “Brands such as Werther’s Original are ideally placed to tap into the demand for value options, offering a high-quality treat at an affordable price point.”

“Convenience shoppers typically look for grab-and-go formats and great value, so our price-marked products perform especially well in this channel,” agrees Clare Newton, trade & shopper marketing manager at Swizzels. “Ensuring these trusted brands are visible at eye level or near tills helps maximise their performance.”

However, retailers report that customers who shop at the value end of confectionery are increasingly deterred by rising prices. “We are seeing people complain more and more that they’re not getting value for money anymore – and it’s getting worse, too. We’ve heard some price-marks are increasing again and some lines have gone up by almost £1 in a year,” says Vrajesh Patel of Londis Dagenham in London. “Even global lines aren’t as popular for us and we’ve just reduced our range, purely because of the price. We found people are no longer willing to pay what they would have a year ago.”

Patel has responded by becoming a local destination for lines that offer a point of difference at a more affordable price. “We’ve been focusing on halal lines as we’ve seen growth,” he says.

Back to top

3. Sour tastes and innovation is growing sales

Sugar confectionery is benefiting from a surge in sales from brands that offer bold tastes and interesting, novel flavours. “We’ve seen a rise in demand for the sour candy segment in particular as sour candy appeals to consumers who are looking for little moments of fun and escapism from day-to-day life,” says Mondelez’ Susan Nash. “Sour Patch Kids, with its range of products in Original, Strawberry, Watermelon, Fruit Mix and Cola variants, is growing by +67% and is well placed to help retailers tap into this demand for great-tasting sour offerings and drive incremental growth for retailers.

“Strawberry was a brand-new addition to the range last year and has seen strong sales and high repeat purchase since its launch in July 2024.”

Retailer Ramesh Nayi, of Broadfield Newsagent & Post Office in Crawley, West Sussex, has found success in stocking novel flavours within global confectionery and it’s even helping him expand his reach way beyond his local customer base. “As my store is quite big and we don’t sell alcohol, we’ve decided to rely on confectionery to stand out and we’re slowly increasing our range and adding new lines to become a destination,” he says.

“We had one customer who bought in someone who was visiting from Scotland to buy from us. They couldn’t find the product they liked back home, so he called us and bought a full case for us to ship. If people like it, they want it and will pay extra, but we don’t go mad on pricing.”

Back to top

4. Sharing bags make up nearly two thirds of the category – and are growing ahead of it

While single lines remain popular for treats, the sharing format continues to reign supreme as the number one packaging of choice for sugar confectionery. “Sharing bags dominate the sugar confectionery category, accounting for £430 million in sales in convenience, growing by +6.5% in value,” says Storck’s Andy Mutton. “They are essential for meeting consumer demand for at-home socialising while gifting formats present growth opportunities as consumers increasingly seek convenient, impulse-driven options.

“By capitalising on growth areas like sharing and gifting, retailers can ensure the sugar confectionery category remains a sweet spot for sales.”

In fact, brands that communicate value on their sharing packs are the ones driving the most sales for some retailers. “Haribo is helping us stand out with their ‘extra-free’ bags, and we’ve found them on promotion for three or four months now,” says Vrajesh Patel. “They’ve recently gone viral on TikTok, too, because of their Harry Potter limited-edition range, and there was Minions before that. Haribo is on it and probably our most successful sales-wise compared to the rest.”

Back to top

5. HFSS restrictions continue to buoy sugar-free sales

HFSS regulations have shaped the sugar confectionery market in recent years, with location restrictions that came into force in October 2022 and a ban on volume promotions right around the corner.

Even promotions that offer a part of the product for free, such as the popular mechanic used by Haribo and described by Patel, will have to be sold through in the 12 months after the implementation date – October 2026 – according to the ACS Guide.

While location restrictions only affect stores with a floor area of over 2,000sq ft, volume promotion restrictions will apply to any convenience retailer with 50 or more employees. However, convenience retailers deemed to have a ‘franchise agreement’ will have to calculate their employee numbers based on the whole organisation they are part of. Retailers are urged to speak with their symbol group or franchise head office to understand their agreement.

“The impact of HFSS restrictions has been particularly pronounced in this category, as the loss of discretionary space and multi-buy promotions has posed challenges,” says Storck’s Andy Mutton. “However, retailers can drive confectionery sales with non-HFSS products by offering popular classics such as Werther’s Original, available in a sugar-free range.”

While the sugar-free market is a way off overtaking sugary lines, the market is growing and could present opportunities for retailers who position them in the right way.

“We’ve seen a consistent and growing appetite for low-sugar confectionery, particularly in the convenience channel. Consumers are becoming increasingly label-savvy and are actively seeking out healthier options that don’t compromise on taste. For retailers, this represents a real opportunity to rethink the confectionery aisle and appeal to a broader audience, says Roshane Stewart, sales manager for Peppersmith.

“Shoppers are looking for products that do more than just taste good – they want added benefits like dental health, natural ingredients, or vegan certification – especially those who have traditionally avoided the category due to high sugar content.

“The low-sugar category is no longer niche – it’s becoming mainstream. And with the right range, visibility, and messaging, c-stores are perfectly placed to capitalise on this shift.”

Retailers that evolve their confectionery ranges with a broad range of bold flavours, value-driven brands and no-sugar products can meet current market trends and keep their sales strong all summer long.

Back to top