Novelty candy—with its innovative designs, interactive containers, and other stand-out features—has always been an especially fun category to follow. Thanks to a notable sales increase over the past 12 months, it’s been a good time for producers as well. However, producers in the space could find challenges like inflation, increased materials costs, labor challenges, and other headaches making the year ahead a little less fun.

Market data
Novelty non-chocolate candy performed admirably over the past year, according to market data from Circana (Chicago) for the 52-week period ending May 18, 2025. The category pulled in about $1.5 billion, which constitutes a double-digit increase compared to the previous year of 11.6%. Unit sales also increased, although not as much—consumers picked up nearly 423 million novelty confections, or 6.4% more than the previous time period.

The top-ranked novelty candy producers saw a mix of notable increases and interesting decreases for the year. The leaders were:

• Ferrara: $777.4 million, up .7%
• Bazooka: $167 million, down 3.4%
• Mars Wrigley, $96.1 million, a 7.1% increase
• Tootsie Roll: $67.5 million, down 2.3%
• The Hershey Co.: $66.4 million, up 52.1%

Source: Circana OmniMarket™ Total Store View | Geography : Total US - Multi Outlet w/ C-Store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers) | Time : Latest 52 Weeks Ending 05-18-25

One of the companies to watch is Sow Good; the producer, which specializes in freeze-dried treats, brought in $19.9 million for the time period, a boost of 39.7%. Private-label novelty candies raked in $15.7 million, an increase of 28.8%.

Looking back
Sales for novelty confections might have been more positive than other categories, but as Joe Foguth (vice president of sales for Gerrit J. Verburg) points out, that does not mean producers in the space did not face some of the same formidable obstacles.

“This past year, some of the biggest challenges we faced came from factors outside our control,” he shares. “Ongoing uncertainty around tariffs and fluctuating exchange rates made planning more difficult, while cocoa prices continued to put pressure on costs. It has been a challenge, but we are on track.

Many novelty producers partner with movie and TV franchises, which can help increase interest in the items. For example, Kinder Joy released a line of Harry Potter products, joining the growing list of sweets brands bearing the likenesses of characters from the books and movies.

"Kinder Joy is all about creating those moments of surprise that make childhood so extraordinary," notes Amber Hansinger, VP of marketing, Kinder Joy USA. "Evoking the same endless wonder sparked by Harry and his friends' magical adventures, Kinder Joy is the only tasty treat that brings delightful and surprising moments of play, discovery, and imagination with each spoonful."

Gerrit J. Verburg also played around with its new products over the past 12 months, according to Foguth.

“This past year we had some fun with a couple of new novelty items—our Blue Raspberry Satellite Wafers take that classic crunchy shell everyone knows, add a tangy sour powder inside, with a tongue tattoo to make the product interactive,” he shares. “We also brought out Candy Cash edible paper which are brightly printed sheets you can actually eat. Both have that playful, nostalgic feel people love.”

Looking forward
Producers likely will face some of the same challenges going into the next 12 months, but they remain positive.

“We’re optimistic about the year ahead; creativity, nostalgia, and social media buzz continue to drive the novelty candy category, and we see strong consumer interest and solid growth on the horizon,” Foguth shares. “Interactive candies will continue to be a big draw, giving consumers a fun experience along with great taste. We’ll likely see more sour varieties gaining traction, along with unique and unexpected fruit flavors.”

Peelable candies continue to resonate with consumers, which likely will impact future releases. For example, Bazooka unveiled Juicy Drop Gummy Mystery Cube candies at this year’s Sweets & Snacks Expo. According to Becky Silberfarb, VP of marketing at Bazooka Brands, these and other innovations are aimed at delighting consumers.

"Juicy Drop continues to lead the way in redefining what candy can be," she says. "These latest innovations are born from listening closely to our consumers and reflect our commitment to bold flavor, quality products, and immersive, multi-texture experiences. Each offering is crafted to spark creativity and deliver a one-of-a-kind candy journey with every bite.”

Foguth hints at Gerrit J. Verburg expanding its lines, such as its Satellite Wafers into seasonal categories—”We’re developing fun variations for occasions like Valentine’s Day and Christmas,” he shares—and adds that rolling with the punches and adapting in the face of challenges will be key to future success in novelty candy.

“We’ve seen longer lead times from suppliers and higher order minimums, which can be tough to balance with forecasting. All of these factors have required us to be more flexible, plan further ahead, and work closely with our partners to keep product flowing.” SF&WB

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