Insights to drive sweet success with chocolate sales
While it’s true that most Canadians (about 60%) say they try to eat healthy, they want sweet indulgence, with chocolate ranking high on the list. It’s the most consumed confectionery in Canada. In fact, we are one of the top consumers of chocolate in the world. The numbers over the last seven years have been creeping higher. In 2023, the average Canadian ate 6.4 kg (the equivalent to 160 bars), according to data from the market research firm Mordor Intelligence.
As we head toward the holidays—Christmas, Valentine’s Day and Easter down the road, it’s prime time to look at the trends shaping chocolate, and most importantly, how to maximize c-store profits based on them. The good news for seasonal chocolate sales is that Canadians are prepared to spend more.
“As inflation is easing, consumers are not planning on cutting back as much as they had last year,” points out Nicole Pageot, market intelligence & strategy, seasonal confectionery, Nestlé Canada. “Ultimately, emotional connection in seasons drives willingness to make the list, with favourite trusted brands driving choices.”
Data for Mordor Intelligence shows that sales of chocolates in convenience stores are anticipated to grow from 2022 levels by as much as 28.7% by 2026. That growth outpaces the overall chocolate business in Canada, growing at a CAGR of 6.23% for the forecast period of 2024-2030 to reach a total market size of US$5.24 billion. It’s confirmation that chocolate is big business and now is the time to maximize sales.
With so many types of chocolate available, the question c-store operators are asking is, “What should I stock?” For guidance, let’s follow the trends.
Big on value
Economic factors influence chocolate-buying behaviours, so many consumers are looking for larger formats that offer value. For example, in November 2023, Reese’s Milk Chocolate King Size Peanut Butter Cups added a version with caramel to its roster.
Ernesto Rivera, associate manager corporate communications, Hershey Canada, says the Reese’s Caramel Big Cup has been a huge success in c-stores: It’s ranked as the number one innovation item, demonstrating strong consumer acceptance. It also achieved the number 10 position among all everyday chocolate items, “indicating its rapid rise to become a consumer favourite…. it’s ranked as the third fastest-turning king-size bar, showcasing its popularity and high sales velocity.”
Seize the trend: Super-size your chocolate selections and offer them at a price point that attracts value-minded consumers. Create special promotions where buying two or three inspires customers to stock up when they see a good deal.
Think small
Health-conscious customers look for better-for-you treats, but are aware of how much they consume. That has fuelled the popularity of smaller, portion-controlled formats, such as minis, bites, squares, and blocks.
Over the last five years, the number of snack occasions has increased significantly, with chocolate emerging as a top choice, notes May Zeibak, market intelligence & strategy manager, confectionery, Nestlé Canada.
“Gen Z is the largest generation of snackers and they’re driving snacking trends. They want the brands they love served up in novel ways that fit their lifestyle. Convenience stores have become their go-to destination for discovering what’s new and exciting.”
Last year, Mondelēz International introduced in Canada the Cadbury Dairy Milk Gift Box, featuring individually wrapped treats. It was named the 2024 Product of the Year Canada winner in the chocolate category.
Seize the trend: Chocolate is often an impulse buy for consumers. Stock those small format sizes near your cash registers so they can grab and go at check-out time.
New and novel
Consumers certainly have their favourite go-to chocolate brands and formats, but they will switch it up when something new captures their attention. U.S. data shows that flavour is a bigger driver for chocolate sales than price.
Peanut butter isn’t new, but it’s having its moment in the spotlight as a desirable sidekick to chocolate. “One of the biggest trends we’re seeing in the chocolate category is the strong growth of peanut butter flavours,” says Ellen Thompson, general manager, Mars Wrigley Canada. “We’re continuing to invest in this flavour partition—one of the fastest growing in Canada—and expanding our offerings to meet consumer demand for familiar, yet indulgent experiences.” Given the U.S. success of the company’s M&M’s Mega Peanut Butter, it bodes well to introduce that product in Canada.
Building on consumers’ love of all things peanut butter and chocolate, in 2025, Hershey Canada is launching Reese’s + Nougat, inspired by data that shows afternoon snacking is on the rise. The launch will be supported by a high-profile NBA partnership campaign.
Seize the trend: While you need to make sure those tried-and-true bestsellers are front and centre, mix it up by adding new formats and chocolate flavours to your offerings.
Milk chocolate still rules for Canadians who prefer their selections to be on the sweeter side, but dark is coming on strong for its touted health benefits.
Some like it hot
Remember when everyone was losing their minds over hot chocolate bombs? It’s still a thing. Hot chocolate sales have a projected growth of 7.4% between 2023 and 2033. Perhaps that inspired Laura Second to jump into that market with its 3D Hot Chocolate Mixes, featuring cute-as-button miniature bears that turn a cup of hot milk into a tasty treat. And just in time for the holidays also comes Hershey’s Hot Chocolate Bomb with Mini Marshmallows.
Seize the trend: Especially during the colder winter months, c-stores can highlight their hot chocolate lineup, placing them on end aisles and high visibility spots. If your c-store has coffee and tea making capabilities, have instant hot chocolate mixes and chocolate bombs on hand for the grab-and-go customers.