Amid growing supply chain challenges, rising cocoa prices, and an increasingly volatile geopolitical landscape, confectionery brands in Australia and New Zealand are turning to innovative packaging as a means to differentiate themselves and connect with consumers. According to market intelligence from Mintel, packaging changes led 20% of new consumer packaged goods in these regions in 2024.

Mintel emphasises that “Packaging is no longer just about protection – it’s a strategic tool that can make or break a product’s success.” As consumer engagement stretches beyond mere brand recognition and digital campaigns, the design and function of packaging are becoming critical components in marketing strategies.

Confectionery brands are seeking to leverage packaging not only to showcase their identity and unique selling points but also to resonate with specific demographics. Notably, the Mars Wrigley-owned Skittles brand received accolades for its incorporation of sour flavours in its share pouch bag packaging during The Grocer’s 2024 new product and packaging awards. This aligns with a broader trend where brands utilise cutting-edge packaging formats to reflect their awareness of current market trends and consumer preferences.

Ferrero-owned Kinder has recently introduced a new laydown packaging option aimed at parents to enhance convenience for seasonal snacking. Personalisation has emerged as a key marketing strategy, particularly in the gifting sector, where consumers are drawn to bespoke chocolate options. Companies like Mondelēz, with their Toblerone brand, have launched digital platforms offering a personalised gifting experience, allowing consumers to customise formats, flavours, and sleeve messages.

Environmental considerations are also shaping packaging strategies in light of new regulations. The forthcoming European Union (EU) Deforestation Regulation and Extended Producer Responsibility rules are prompting confectioners to reassess their operations and packaging priorities. Brands are increasingly viewing sustainability in packaging as essential, with consumers expecting eco-friendly solutions as a baseline requirement. Companies are responding by adopting recyclable and compostable packaging, as well as minimising waste.

Tony’s Chocolonely, Skittles, and Smarties are all transitioning to more sustainable, paper-based packaging as a reflection of their environmental commitments. Nestlé is showcasing its eco-friendly initiatives on product packaging, prominently featuring its sustainable chocolate range in recyclable paper pouches designed to highlight its dedication to responsible sourcing.

Health awareness among consumers is also influencing packaging trends. Front-of-pack labels that emphasise clean ingredients and natural formulations are becoming significant selling points. The FDA's recent ban on Red No.3 food colouring, effective January 2027, is prompting brands to consider natural colour alternatives, which could boost consumption of healthier confectionery options. However, the growth in this sector has been sluggish, with only 10% of consumers opting for healthier alternatives in 2024.

Data from Bite Back, a campaign led by British chef Jamie Oliver, has raised concerns regarding the packaging of confectionery aimed at children. Their analysis of 262 products identified that 80% employed bright colours and playful designs to attract young consumers. The Grocer has confirmed that this focus on vibrant packaging remains prevalent, despite calls for more responsible marketing approaches.

Overall, the confectionery industry faces the dual challenge of innovating packaging to appeal to consumers while also adhering to health and environmental standards. Striking a balance between attractive packaging, informative content, and responsible marketing will be key for brands aiming to succeed in an evolving market landscape.