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State of the Industry 2025: Publisher's note

Consumers are seeking bold flavors, unique textures, and other adventures in novelty candy.

By Douglas J. Peckenpaugh
Milk Chocolate Ring Pop with Sprinkles
Courtesy of Bazooka
September 22, 2025

We love the thrill of the hunt. Our neurological framework is structured to reward us for new discoveries. Retail grocery chains like Trader Joe’s and Costco have long understood our psychologically ingrained fascination with product discovery. Retail stores dedicated to candy thrive on the excitement and thrill of everything new. Every aisle could hold something new and exciting. It keeps customers coming through the door.

For the novelty candy category, the concept of “new” is built into its DNA. And novelty candy continues to show impressive year-over-year growth. The majority of novelty candy business focuses on non-chocolate, which grew 11.6% in dollar sales over the past year to $1.5 billion, with unit sales up 6.4%, as reported by Circana for the 52 weeks ending May 18, 2025. Companies with particularly notable growth in non-chocolate novelty candy included:

  • Ferrara, up 21.7% in dollar sales to $777.4 million
  • The Hershey Company, up 52.1% to $66.4 million
  • Sow Good, up 39.7% to $19.9 million

Private label non-chocolate novelty candy also saw strong growth, up 28.8% to $15.7 million, demonstrating that novelty candy consumers aren’t just engaging with the top international brands.

And while the broad flavor and color palette candy formulators have to play with synergistically lends itself to the non-chocolate category, chocolate is also proving fertile ground for growth. Per Circana, the chocolate novelty candy segment grew 149.2% over the past year, raising the segment’s retail value to $5.8 million, with select companies seeing accelerated growth. Three candy companies entered the chocolate novelty segment for the first time, with all three posting over $1 million in sales for the year:

  • Ferrero chocolate novelty sales hit $1.1 million
  • Chocolate novelty sales for Kanpai Foods, known for its freeze-dried offerings, were also $1.1 million
  • Impact Confections, famous for its Warheads brand and iconic Circus Peanuts, saw chocolate sales of $1.0 million

While some novelty candies offer perennial interest, new items continually hit the market to entice shoppers. Releases of note over the past year included:

  • Bazooka Brand’s released its first chocolate Ring Pop, new Gummy Mystery Cube products combining peelable and 3D gummy concepts, and Bottle Pop Twisters, which offer three layers of flavors
  • Candy Dynamics Slime Licker Double Play and Spray

Novelty candy also presents great opportunities for co-branded, licensed offerings. Recent entrants to this space include:

  • CandyRific licensing deals with Gabby’s Dollhouse, Kona Ice, and Disney
  • Ferrero licensing deals between its Kinder brand, DC, and Funko, as well as Kinder Joy, Warner Bros./Harry Potter, and Funko

Top novelty candy companies frequently engage with core and potential consumers on social media platforms to explore new areas for product development. Considering the inherent flexibility of the novelty candy category, the broad arena of the internet is fertile ground for exploration, where the right combination of product format, flavors, and fun can lead to the next new discovery for candy shoppers. In a bit of self-sustaining circularity, many of those same consumers sharing their thoughts online are more likely to then share their new novelty candy experiences on social media, exponentially fueling the fun for everyone.

What have been your favorite novelty releases over the past year? We’d love to hear your perspectives.

KEYWORDS: Hershey Jolly Rancher Mojave Mallows Nassau Candy twizzlers XO Marshmallow

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Doug 200

Douglas J. Peckenpaugh is Director of Content Strategy for Beverage Industry, Dairy Foods, Food Engineering, The National Provisioner, Packaging Strategies, Flexible Packaging, Prepared Foods, Refrigerated & Frozen Foods, Snack Food & Wholesale Bakery, and Candy Industry at BNP Media. For over three decades, his work has followed the food industry from farm to fork, including concentrations in agriculture, ingredient processing, packaging and processing equipment, retail grocery branding, foodservice menu development, and food product R&D and manufacturing.

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