Better-for-you candy brands are going all in on Halloween
Better-for-you candy brands are hoping that adults will dole out low-sugar gummies or chocolate-dipped nuts to trick-or-treaters this Halloween season.
Candy startups are getting into the spirit by running marketing campaigns and releasing Halloween variety packs to attract health-conscious people. This is the first year Unreal, which makes lower-sugar chocolate without artificial ingredients, is selling a Halloween variety pack in Target’s seasonal candy aisle. Meanwhile, dipped nuts brand SkinnyDipped is expanding its portfolio by offering a healthier take on beloved classics like chocolate squares and peanut butter cups. Moreover, low-sugar gummies brand SmartSweets is leaning into the season by launching a giveaway of its Halloween variety pack.
Despite rising cocoa prices causing a chocolate shortage, Halloween is again expected to be a major sales driver for the candy industry in general. According to the National Confectioners Association, Halloween chocolate and candy sales reached $6.4 billion in 2023, with the association projecting a 3% to 5% increase this year. Much of that will be consumed on the day of Halloween and through trick-or-treating.
Carly Schildhaus, director of public affairs and communications at the National Confectioners Association, said in a statement that while there isn’t specific data that breaks out better-for-you candy’s market share, it is a growing subcategory.
“Innovation is at the heart of the confectionery industry and offering products that appeal to a range of tastes and dietary considerations is a key piece of what that means to our member companies,” Schildhaus said. As consumers’ tastes and preferences evolve, Schildhaus said chocolate and candy manufacturers are offering them products featuring new textures, flavors and concepts like lower sugar or less calories.
As a result, candy startups are trying to ride the Halloween wave. Colin Flood, vp of marketing at Unreal Brands, told Modern Retail the company is increasingly using the holidays to reach a broader type of customer who may be interested in better versions of their favorite candy. “Chocolate is not typically a planned purchase, but on Halloween, it can be a unique chance to reach [new customers],” Flood said. It also helps Unreal has a wide retail presence, with its products available at over 35,000 locations.
This year, Unreal is selling a new 20-piece variety bag. In stores, it will be available exclusively at Target. The pack was also available on Unreal’s DTC website, but it’s currently sold out. Additionally, Unreal is selling products with limited-edition Halloween packaging, like mini peanut butter cups and coconut bars, that will be available at over 20 partners, including Sprouts, Stop & Shop and Wegmans. Unreal has rolled out products with Halloween-themed packaging since 2015, but just a few years ago, they were pretty much carried exclusively by Whole Foods. The fact that these products are starting to creep into more retailers is indicative of how much interest in better-for-you candy has grown.
Target has become a big focus for Unreal more recently. “We expanded our everyday program with them this year,” Flood said. “It just opens up to a new kind of consumer.” The Target Halloween launch is especially a big milestone, Flood said, as Unreal sits next to conventional candies by the likes of Hershey and Mondelez. “As another small indicator, we’re on track to have our best month ever in our online brand shop,” Flood said.
Often, getting into the household is the biggest challenge, so Unreal tries to focus its messaging on talking to parents. “We lean into the fun, colorful branding, but I would say we’re not looking to market directly to kids,” Flood said.
Even companies that make adjacent products like sweet snacks are recognizing the Halloween season’s importance for business. Snacking brand SkinnyDipped, known for its dipped nuts, has been leaning into sweet treats to attract a broader audience.
Breezy Griffith, co-founder and CEO of SkinnyDipped, said that “the Halloween period has typically performed strongly for us, especially in recent years as consumers have shown an increasing interest in better-for-you versions of their favorite treats.” Halloween is a time when people traditionally indulge, Griffith said, but growth from the holiday shows that more are seeking alternatives to their favorite sweets.
“We’ve seen that many of our customers purchase SkinnyDipped products for self-treating around Halloween,” Griffith said. The marketing efforts during this period focus on driving customers to retail partners to stock up or partnering with influencers on Halloween-themed social campaigns. These customers tend to be health-conscious adults who are looking for a guilt-free but indulgent snack that satisfies their sweet tooth.
The growth in demand is also influencing SkinnyDipped’s new product releases, leading the company to embrace seasonal flavors like maple kiss and pumpkin spice almonds. “These seasonal releases have become highly anticipated by our community and are perfect for self-treating or sharing during the Halloween season,” Griffin said.
Overall, better-for-you candy brands anticipate they will continue to embrace the spooky season. Flood of Unreal said that the brand plans to expand its Halloween offerings next year and, hopefully, expand to more retailers.
“Halloween is a great time for household penetration rates for chocolate,” Flood said. “So it’s a big opportunity when our category is illuminated across the board.”