Mars, Mondelēz, Ferrero, Nestlé and Hershey: Rethinking confectionery innovation

Confectionery innovation – summary

• Innovation shifts from new flavours to experience-led formats and moments
• Selective indulgence drives fewer treats but higher expectations of value
• Social commerce now shapes discovery while stores still scale innovation
• Cultural collaborations and seasonality increasingly create standout confectionery experiences
• Manufacturers must balance experimentation, technology, sustainability, and emotional connection

Confectionery innovation is ramping up right across the industry.

We’ve got Nestlé’s KitKat collaboration with Formula 1, leading to the creation of “chocolate cars”.

Similarly Ferrero Group is switching up its marketing strategy to incorporate global sporting events – most notably the FIFA World Cup this summer.

Meanwhile Mars, Inc. is moving towards net zero across its entire supply chain.

Mondelēz International is engineering the world’s first cell-based chocolate bar.

And The Hershey Company is experimenting with bold new seasonal formats and flavours for one of its biggest brands – Reese’s.

So what’s behind this shift in how confectionery innovates?

What’s driving confectionery innovation?

Confectionery is shifting from “new flavours to new experiences,” says Sally Lyons Wyatt, global EVP and chief advisor for consumer goods and foodservice insights at market insight firm, Circana.

Innovation that “wins” is no longer just about taste, it’s about emotion, interaction, discovery, and occasion‑based meaning.

Change, says Lyons Wyatt, is coming from unexpected textures, peelable and reveal formats, glow‑in‑the‑dark gummies, freeze‑dried sweets and multi‑layer experiences – an approach brands such as Trolli have leaned into with playful, highly visual gummies, and Haribo continues to evolve through layered, texture‑led formats that invite participation.

These products are designed to be played with, filmed, and talked about. Dubai‑style chocolate is the perfect example of this dynamic, where innovation moved from a viral social moment into a scalable commercial trend, eventually adopted by both premium and mainstream players.

Brands tapping into culture are also gaining ground, with majors like Ferrero celebrating the World Cup, and Mars, Mondelēz and Hershey increasingly using limited editions, nostalgia and seasonal drops to strengthen emotional connections and turn confectionery into shared, experience‑led moments.

But the changes aren’t all industry-led.

Consumers and confectionery innovation

Shifting consumer behaviours are driving change across the industry.

And the biggest shift?

Consumers are turning to “selective indulgence not reduced indulgence”. In other words, consumers don’t want low-sugar or low-fat, they want real treats but they might indulge in them less often.

“Consumers are still buying confectionery, but they’re being more intentional,” says Lyons Wyatt. “This pushes brands to ensure each innovation feels worth the moment, the price, and the calories.”

Added to this, “discovery” of confectionery is no longer linear. Social commerce skews younger and drives early trial, Instagram plays a role in mid-life discovery, and other social platforms resonate later in life, while bricks and mortar still scales innovation. This means brands that are adapting best are those that design products specifically for how and where they’ll be discovered, not just where they’ll be sold.

Technology in innovation

Behind the scenes, technology is increasingly shaping what confectionery innovation looks like and how fast it reaches consumers.

From AI‑supported trend identification and social listening to advanced manufacturing techniques that unlock new textures and ingredient possibilities, technology is allowing brands to move faster, test more ideas and de‑risk innovation.

Developments such as cell‑based chocolate and precision fermentation are also opening new doors for future‑proofing cocoa supply, while helping manufacturers rethink how indulgence, sustainability and scalability intersect.

Sustainability – obligation to opportunity

Sustainability is no longer separate from innovation, it’s becoming a core driver of it.

As cocoa supply constraints, regulation and consumer scrutiny intensify, brands are using sustainability as a platform for differentiation – whether through alternative ingredients, lower‑impact supply chains or more transparent storytelling.

Increasingly, sustainability itself is becoming part of the experience, reinforcing trust, brand values, and emotional connection, rather than feeling like a trade‑off.

Be bold

Successful confectionery innovation will be defined by products that feel “genuinely new,” says Lyons Wyatt.

As expectations rise, brands will need to move away from over‑reliance on minor flavour extensions, packaging‑only refreshes and innovation that lacks a clear discovery strategy.

Treating seasonality as an afterthought, rather than a launch engine, or assuming distribution alone guarantees success, risks leaving new products invisible in a crowded market.

Successful brands will go beyond simple flavour variants and instead mix things up completely – new formats, new textures, new visuals, and new experiences. Anything less will appear old and tired.

The power of retail

Retailers and e-commerce channels are also playing a more active role in determining which innovations win.

Convenience, travel retail, seasonal aisles and online platforms are becoming test beds for new ideas, while exclusive launches and limited‑time drops help build urgency and visibility.

In this environment, speed to shelf, flexibility and strong retailer partnerships are just as important as the product itself.

What the future holds

Looking ahead, the brands that stand out are likely to be the ones that think big – big flavours, big ideas, big design risks.

For manufacturers, the real opportunity is moving away from seeing innovation as a steady stream of new products, and instead treating it as a series of experiences designed to surprise and entertain consumers, all while being delicious – oh, and if they’re exciting enough to post on Instagram or TikTok, all the better!