At the National Confectioners Association’s State of the Industry address, titled 'Sweet Land of Liberty,' NCA President and CEO John Downs drew a historical line between the country’s founding ideals and the chocolate and candy sector’s long tradition of innovation, entrepreneurship and consumer enjoyment.
Downs highlighted a lesser-known historical footnote: after the Boston Tea Party in 1773, many colonists shifted from drinking tea to chocolate – an early signal of how confectionery would become embedded in American life.
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“Chocolate and candy have been part of the American story since the very beginning,” Downs said, describing the industry as one that reflects ideals of liberty, creativity and the pursuit of happiness.
In a press conference following the keynote, Downs reinforced the strength of the category, pointing to what he calls confectionery’s "Triple A’s”: acceptability, affordability and availability.
“Our category is solid,” Downs said. “If you look at those three A’s – acceptability, affordability and availability – they really drive the strength of confectionery.”
Candy, Joy and Emotional Wellbeing
The industry’s emphasis on enjoyment is supported by emerging research into chocolate’s effects on mood.
According to reporting by USA Today, chocolate can trigger physiological responses linked to improved mood, including the release of endorphins and serotonin. It also contains compounds such as theobromine and phenylethylamine that stimulate the brain’s reward system and can produce feelings of comfort or pleasure.
Those mechanisms help explain why chocolate remains closely associated with celebrations and emotional moments – from Valentine’s Day and Halloween to birthdays and holidays.
Industry leaders emphasize that candy is intended as an occasional treat rather than a dietary staple, designed to enhance experiences and shared moments.
“It’s still the joy, the pleasure treat for consumers,” Downs said. “When budgets are tight and everything’s expensive, people can still reward themselves or say thank you with an affordable treat.”
A $55 Billion Industry Still Growing
Despite inflation and shifting consumer habits, the US confectionery market remains one of the strongest categories in packaged foods.
Industry data presented at the conference showed confectionery sales reached about $55 billion last year. The market is projected to grow by roughly $7 billion, reaching around $62 billion over the next five years.
Downs attributed the sector’s resilience to its accessibility and emotional appeal. Candy maintains near-universal household penetration in the US, outperforming many everyday consumer goods.
“The industry continues to thrive because consumers see candy as affordable, accessible and enjoyable,” he said.
Confectionery also performs well in digital culture.
“Our category is a social media darling,” Downs said. “We’re vibrant, energetic and tailor-made for the buzz around those platforms.”
Still, companies must adapt to changing consumer behaviour. Younger consumers increasingly interact with sweets through experiences, seasonal events and social media moments.
Downs encouraged companies to capitalise on cultural events such as the Super Bowl, the Olympics and Valentine’s Day – periods when confectionery sales typically surge.
Innovation Driving the Next Phase of Growth
Innovation continues to be one of the sector’s defining strengths.
“Our category is the most innovative in the store,” Downs said. “We’re bringing new products to market at roughly four times the rate of other food and beverage categories.”
Chocolate has faced short-term pressure from rising cocoa costs and higher retail prices. Still, Downs said manufacturers are adapting.
“We’ve experienced some volume declines in chocolate driven by high commodity costs and pricing increases,” he said. “But I’m confident companies will double down in smart ways to address that.”
Meanwhile, non-chocolate categories – particularly gummies, chewy candy and freeze-dried formats – are expanding rapidly.
“Innovation in non-chocolate – flavours, textures, gummies, chewy and freeze-dried products—has been a fantastic success story,” Downs said.
Navigating a Complex Policy Landscape
While consumer demand remains strong, the industry faces an increasingly complex regulatory environment.
The National Confectioners Association, founded in 1884 and widely regarded as the oldest trade association in the US food sector, has historically played a major role in shaping food policy. The organisation helped advocate for the country’s first federal food safety laws in 1906.
Today, Downs said the policy landscape is becoming more challenging.
Over the past year, the association tracked 137 state bills targeting ingredients or labeling requirements. Only three ultimately passed, a result industry leaders attribute to active engagement with lawmakers.
The NCA is advocating for nationally uniform food standards, arguing that a patchwork of state rules could disrupt manufacturing, labelling, and distribution.
“Federal standards ensure consistency and protect both consumers and manufacturers,” Downs said.
Industry Strategy: Advocacy, Litigation and Collaboration
Following the keynote, Downs joined a policy panel with Brian McKeon, NCA senior vice president of public policy; Christopher Gindlesperger, senior vice president of public affairs and communications; and political consultant Kellyanne Conway.
The group outlined a multi-layered strategy to address emerging regulatory pressures.
One major issue is extended producer responsibility (EPR) legislation, which requires companies to help fund recycling systems. Several states have already passed such laws, potentially increasing packaging costs for manufacturers.
Industry leaders say their response combines state-level engagement, public communications campaigns and legal action where necessary.
Litigation is already underway against certain state regulations considered unconstitutional. According to McKeon, two state labelling laws have already been blocked by court injunctions.
The association is also advocating for federal preemption in some areas to avoid inconsistent state-by-state regulations.
Meanwhile, manufacturers are monitoring the implementation of the 2025 federal sugar program reforms aimed at improving supply reliability.
Tariffs on imported ingredients – including cocoa – have also been a major concern. Industry leaders say recent engagement with policymakers helped secure tariff relief on some inputs.
America’s 250th: A Marketing Moment for Candy
Beyond policy debates, the industry sees the nation’s 250th anniversary as a significant commercial opportunity.
The NCA is encouraging brands to participate in its 'Sweet Land of Liberty' campaign, linking confectionery to the country’s semiquincentennial celebrations.
Retailers are already planning promotional programs tied to the initiative during the summer selling season.
“We’re seeing retailers already excited to use the campaign for promotions in June, July and August,” Downs said.
Brands are also developing themed products and retail displays tied to the anniversary.
The campaign will coincide with events in Washington, DC, organised with national committees and federal partners responsible for the 250th anniversary commemorations.
The aim is to create consumer moments that celebrate both American history and candy’s role in bringing people together.
Transparency and Consumer Trust
At the same time, the industry is responding to growing consumer interest in ingredients and sourcing.
Downs said manufacturers are investing in natural colours and flavours while increasing transparency around ingredients and production practices.
Efforts are supported by platforms such as AlwaysATreat.com, a consumer education initiative recently redesigned by the NCA. The site provides guidance on mindful enjoyment, portion awareness and balanced lifestyles.
Industry leaders say the goal is to reinforce the message that treats can fit responsibly within everyday diets.
Sustainability and the World Cocoa Foundation
Looking beyond the US market, Downs stressed to CocoaRadar that sustainability in cocoa-producing regions remains a central industry priority.
“Sustainability is a must-win battle,” he said. “There’s no finish line – you just keep making progress year after year.”
Maintaining close collaboration with partners such as the World Cocoa Foundation will be critical, particularly as the WCF prepares to appoint new leadership.
Downs said establishing an early relationship with the incoming WCF president will help sustain momentum on joint initiatives. That includes welcoming the new leadership, scheduling introductory discussions and reaffirming existing collaboration frameworks.
Rather than relying on single breakthrough initiatives, progress in cocoa-growing communities often comes through incremental improvements.
“We focus on singles rather than home runs,” he said.
The NCA also highlighted the importance of grounding sustainability programmes in field-based projects. Recent examples include partnerships and visits in Brazil, Peru and Colombia, as well as engagement with governments exploring sustainable cocoa and coffee production as alternatives to illicit crops.
Downs also emphasised the value of connecting producing countries with global industry platforms – from trade shows to international conferences – to strengthen collaboration across the cocoa value chain.
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