Hershey, Ferrara, and Mars Wrigley are finding sweet success in the growing gummies market, leveraging the squishy treats to boost sales of well-known brands and drive innovation. Hershey’s focus on gummies, especially its Jolly Rancher brand, highlights this trend.
Dan Mohnshine, Hershey’s vice president of marketing, U.S. confection, grocery, and protein snacks, noted that gummies are expected to outpace category growth. “Our expectation is that [soft and chewy candies like gummies are] going to continue to outpace category growth, and for us, that’s a big opportunity,” he said. Demand for gummies increased before the COVID-19 pandemic and has continued to grow.
Gummies offer unique advantages over chocolates, such as multiple flavours in one bag, shareability, resistance to melting, and a perception as a more permissible indulgence. Hershey has invested millions to expand its gummy production capacity, which is expected to surge by 50% in 2024. Recent product launches include Jolly Rancher Awesome Reds, a sour gummy mix, and an upcoming gummy collaboration with basketball star Shaquille O’Neal.
Mars Wrigley also sees gummies as a canvas for innovation. Mike Gilroy, vice president of trade development and sponsorship, said gummies allow for experimentation with different flavours, shapes, layers, and textures. The company has leveraged the equity of established brands like Life Savers, Skittles, and Starburst to expand into the gummy market. The increasing purchasing power of Gen Z consumers is driving this growth, with Gen Z choosing gummies nearly 60% of the time, compared to about half for millennials.
Consulting firm Menu Matters’ vice president, Mike Kostyo, noted that gummies’ appeal spans all age groups. Older consumers feel nostalgic, while younger ones are attracted to the brightly coloured and squishy treats. However, Kostyo expressed doubt about the longevity of gummies’ popularity, predicting that the candy industry will eventually move on to the next trend.
Despite this uncertainty, confectioners like Frankford Candy are investing heavily in gummies. Frankford, known for its seasonal chocolate offerings, has expanded into gummies through a licensing deal with Kraft Heinz. Gummies have become the fastest-growing part of Frankford’s business, outpacing chocolate.
Ferrara Candy’s Nerds brand has also benefited from the gummy trend. The introduction of Nerds Gummy Clusters in 2020 has significantly boosted sales, with clusters growing at a 40% rate compared to low single-digits for traditional Nerds. Gregory Guidotti, Ferrara’s chief marketing officer, emphasized the importance of aligning brands with consumer demand and being selective about which brands to expand into the gummy category.
As the popularity of gummies continues to rise, confection giants are finding new ways to innovate and capture consumer interest, ensuring that the squishy treats remain a key part of their growth strategies.