As a top 10 in-store category for the channel—and one with strong margins—candy continues to enjoy support from retailers and marketers alike, many of whom express optimism that good growth will soon return.

At the NACS State of the Industry Summit in April, the NACS research team unveiled that in 2024, candy dollar sales per store, per month were $9,136, a 3.9% increase year over year, and margins were 51.06%, generating a 4.2% increase in gross profits. The category contributed 3.5% to in-store sales.

“Convenience stores play an integral role among today’s consumers because they’re accessible and fast,” remarked Jim Dodge, vice president of convenience at Mars Wrigley. “For the category, it’s a place for brands to meet consumers where they are, especially with the rise of snacking on the go.” Indeed, according to Dodge, when it comes to treating themselves, one in three shoppers seek a snack as part of their convenience trip.

“Trips into stores continue to be the main challenge to the channel,” explained Nik Culver, category management director, c-store, emerging and alternative channels at the Hershey Co. While trips to the pump were relatively stable through early March, “trips into the store have yet to rebound,” he noted. “Trips and volume in-store have been largely the result of a more pressured low-income consumer who we’ve seen shift to other channels.”

Confectionary sales across all outlets topped $54 billion in 2024, with chocolate accounting for 52% of sales, the National Confectioners Association recently reported. C-stores are indeed a major outlet—representing 16.9% of all candy sales, according to data from NIQ.

3.9% The year-over-year increase in candy sales per store, per month.

Inflation Woes

With soaring ingredient costs, candy prices at retail have been on the rise. “Cocoa costs hit a record high in March 2024 due to global supply shortages and other factors,” explained Emma Tainter, research analyst at NACS, adding that prices for chocolate treats aren’t likely to come down anytime soon.

“The days of entering a c-store or travel plaza and mindlessly filling your arms with items, not caring of the price, has become a thing of the past with the rise in inflation and the consumer being more budget conscious,” remarked Maria Ottone, category manager at Onvo, with locations in Pennsylvania and New York. Ben Blouin, manager at Cummings Market in Kennebunk, Maine, said his customers have noticed the price hikes, with 8- to 10-ounce shareable bags of the treats reaching upwards of $6. While candy sales are lackluster at his store, Blouin noted that the segment “is doing better than some other categories.”

Candy marketers maintain that the category’s current challenges can be overcome with the right tactics. “As economic pressures persist, consumers are gravitating toward smaller, more affordable pack sizes,” remarked Michael Scalera, senior marketing director at PIM Brands, “ensuring that they can still enjoy their favorite brands without exceeding their budgets. For brands in the confectionery and snacking space, the opportunity lies in striking the right balance between innovation, value and accessibility, ‘while continuing to deliver the indulgence that consumers crave.” PIM Brands is expanding its value offerings to include five new changemakers, Scalera said.

Virtually all candy subcategories recorded growth in 2023, and that trend continued in 2024 but at a smaller rate, Tainter said. Culver pointed out that while sales of chocolate—the top candy subcategory in c-stores—turned in a compound annual growth rate of 8% from 2020 to 2024, there’s been “some slight slippage.” Nevertheless, “Value at both ends of the spectrum continues to deliver,” the Hershey executive said, “with super king bars up 15% to start the year and a resurgence of standard bars in accounts activating promotions.”

Some chocolate marketers point to opportunity in trading shoppers up. “In the U.S., we’re seeing customer purchasing behaviors shift from mainstream chocolate to premium products,” said a spokesperson for Lindt & Sprügli, producer of Lindor truffles. “Our goal is to create a premium brand block at all major c-store retailers to give customers options and to grow the category.” At PIM Brands, Scalera said that its Toggi Fine European Wafers brand is gaining traction and that the company is enhancing this brand’s presence in c-stores this year with a new shipper program.

Non-chocolate and pegged candy, meanwhile, generally appear to be performing better than chocolate. Tainter points to rising demand for products like gummies and private label offerings. Mondelez International, marketer of Sour Patch Kids, is benefitting. According to Grace Howard, senior brand manager, the company gained share in c-store non-chocolate candy sales last year. New products like Sour Patch Kids Glow Ups and Fruits Mix will help non-chocolate subcategory sales in the channel to continue to grow, she said. “As the leading gummy candy brand, we remain committed to delivering exciting experiences and unexpected twists,” Howard added.

Following a pandemic-era dive, sales of both gum and mints in c-stores continue to rise, both Culver and Dodge noted. “With the resurgence of people returning to the office and an increase in consumers seeking travel experiences, they’re turning to gum to freshen breath,” Mars Wrigley’s Dodge explained.

Gen Z and millennial consumers seek bold, innovative flavors and unique sensory experiences.”

Trendy Treats

The candy category has always been influenced by overall consumer, culinary and even pop-culture trends. Tainter points to flavors like apricot, pistachio, yuzu, cotton candy, ginger and pear as trendy of late, while “combos, such as sweet and spicy, sweet and sour and sour and spicy” are also the rage. “Sour candy is the biggest trend that we’re seeing,” reported DeAnn Tracy, owner of Tank-N-Tummy in Cleveland, Oklahoma. “Pickle-flavored candies are also hot.” Scalera said that customer demographics play a big role in candy trends. “Gen Z and millennial consumers seek bold, innovative flavors and unique sensory experiences,” the marketer noted.

Those demographic and flavor trends are greatly impacting the pegged candy sector, according to c-store operators. Pegged and non-chocolate candy—dominated by gummies—performed well at Onvo last year, Ottone said, as they “offer more novelty and flavor profiles than chocolate bars.” Pegged candy also grew at Super Quik, with six stores in Kentucky and Ohio, Rex Lawless, marketing director, noted. He pointed to customer movement away from single-serve packs and toward larger standup packs that provide a greater value.

Perhaps the hottest trend in candy in the past year has been freeze-dried offerings. Mars Wrigley launched Skittles Pop’d last year to appeal to Gen Z’s love for fruity, sour and texture, and Hershey recently introduced Jolly Rancher Freeze Dried. Ottone credits the freeze-dried trend for contributing to category unit and dollar sales growth at Onvo last year. “Freeze-dried candy came in with a bang,” agreed Blouin from Cummings Market. But by early 2025, interest had fallen off a bit, he noted.

Surprise and Delight

Onvo worked with vendors last year “to secure strong promotional deals to provide value for our customers,” Ottone said. “These promos, along with supporting signage and several suggestive-selling contests, helped drive our candy sales in 2024.” Super Quik, meanwhile, runs an everyday buy two, get one offer on candy bars. “Deals like that help consumers during these inflationary times,” Lawless said.

Front-end merchandising is particularly important for the category as, according to NACS Convenience Voices survey, 22.4% of impulse purchases are candy. “Impulse products rarely make it onto shopping lists,” remarked Dodge. “When the front end is designed well, the experience becomes invisible: Shoppers flow smoothly, operations run seamlessly and basket-building moments occur naturally.” For the last few years, Mars Wrigley’s Transaction Zone Team, acting as retail design consultants, has worked with retailers to “turn the front end into a competitive advantage,” he noted.

Other candy marketers point to cross-merchandising opportunities to build category sales. “Cross-category promotions, such as discounted bundle offers on candy and beverages, create enticing purchase opportunities,” shared Howard. Candy bundles with foodservice are another option, Culver added. Scalera suggests seasonal and thematic displays to create excitement and draw attention to new or limited-time offerings. “These tactics enhance the shopping experience, drive incremental sales and increase overall profitability for convenience stores,” the PIM Brands executive said.

Indeed, new products are the lifeblood of the candy category. “Innovation is important,” Tank-N-Tummy’s Tracy remarked. “I put whatever’s new on the counter, and that often leads to impulse sales.” New candy products are designed to reach core consumers and attract new ones, Dodge explained, pointing to recent introductions from Mars Wrigley that include Snickers Pecan and M&M’s Peanut Butter & Jelly. The new offerings meet consumers’ needs for new flavors and fun experiences from trusted brands, he explained.

There’s no question that with higher prices for consumers, retailers will need to work harder to drive candy sales. But marketers reiterate that the immediate-consumption desire that c-stores fulfill is a good match for the impulsivity of candy consumers. “The candy category delivers surprise and delight to c-store shoppers,” Mars Wrigley’s Dodge said, “and it motivates consumers to put one more item in their basket.”