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Bord Bia

Sugar-Free Sweet Tooth?

9th November 2020

Eimear Gill, Market Executive, Bord Bia – The Irish Food Board

Reduced sugar chocolate confectionery is an area to watch in the United States. This article outlines the what, who, and why of this growing segment.

What?

The chocolate confectionery category has a new trailblazing segment: Low/No sugar chocolate. This segment includes products where the sugar content is reduced in the production process either by actively reducing sugar content or by replacing it with low-sugar alternatives (GlobalData 2020).

In 2018 the segment experienced positive growth for the first time in many years. It is now the fastest growing segment within the chocolate confectionery category, experiencing double digit growth in 2018 and 2019 (Euromonitor 2019). The segment was valued at $187.3 million in 2019 (Euromonitor 2019).

Prior to 2018 reduced sugar chocolate performed poorly as US consumers aimed to control their sugar intake through portion control. Reduced sugar is now a USP for many brands as consumers are embracing the freedom to indulge without the guilt.

Who?

Suppliers include both new and established brands. New brands such as Lily’s, The Good Chocolate, and Pascha have entered the market with a brand focus on clean, or healthy products. While established brands like Hershey’s, Reese’s and Russell Stover have introduced reduced sugar ranges to meet the consumer demand. 

Lily’s launched in 2010 with a clear USP of zero sugar. Their brand slogan is ‘Less sugar. Sweet life.’ The chocolate contains no added sugar and is botanically sweetened by stevia. 

Why?

According to Mintel, 87% of US consumers are trying to reduce their sugar consumption. While this has been the case for many years, consumers are more often seeking low sugar options now instead of limiting their quantity of products with a higher sugar content. Reduced sugar chocolate products are viewed as a permissible treat which align to the consumer desire to "eat, drink and live to optimise my body’s systems” (Bord Bia 2018).

Irish confectionery suppliers should consider how their product aligns to this growing trend in the US and whether they can position themselves as a preferable option within the confectionery category based on the sugar content of their products.

 

Sources:

  1. GlobalData Unites States Confectionery - Market Assessment and Forecasts to 2024. June 2020
  2. Euromonitor HW Snacks and Confectionery Market Size 2019
  3. Euromonitor Chocolate Confectionery in the US Sep 2019
  4. Mintel Chocolate Confectionery: Including Impact of Covid 19 US May 2020
  5. Bord Bia Consumer Lifestyle Trends - https://www.bordbiaconsumerlifestyletrends.ie/trends/health-wellbeing/