Dive Brief:
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Gum manufacturers are rolling out candy-like flavors to help revive the category, which has seen sales decline 3.1% over the past year, according to Candy Industry.
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Sugar-free gum company Project 7 sold $8.5 million worth of gum last year, with flavors including Birthday Cake, Kettle Pop, Gingerbread Snap and Red Velvet Cupcake. Company founder Tyler Merrick says that smaller, innovative gum companies that experiment with more than mint flavors are needed to keep consumers interested in the category.
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Market leader Wrigley says consumers enjoy the "candy-like" experience of gum when they are looking for a low-calorie treat, and has released gum-candy crossover flavors like Starburst-flavored Juicy Fruit gum to meet this demand. Wrigley controlled 74% of the gum with sugar market last year, and 53% of the sugar-free gum market.
Dive Insight:
Whether the latest attempts to boost the category are successful or not, it's clear that gum is in need of innovation. Although it is still a multi-billion dollar category, unit sales fell more than 6% last year, and consumers have tired of different variations on mint.
Project 7’s flavors take gum in a new direction, playing on consumers’ desire for indulgence without the calories. The idea of enjoying the flavor of birthday cake or caramel apple in the form of a sugar-free gum seems to hold considerable appeal, especially as more consumers monitor their sugar intake. The flavors are not intended to compete with refreshing, minty gums, and the company’s founder is open about their place as a secondary gum choice for many consumers. Still, the brand's unusual flavor profiles lend a sense of fun and novelty to the category, and could lure consumers who don't normally chew gum to the space.
Wrigley has also focused on innovation for its more candy-like flavors, investing in its Hubba Bubba and Bubble Tape bubble gum brands, leading to an increase of more than two and a half percentage points of value share in that category in 2016, according to Euromonitor data. The market research company also suggests that flavor innovation is crucial for stabilizing the gum category, citing Topps Co’s recently launched Juicy Drop gum as a product that can maintain consumer interest.
