Category Analysis: Licorice
Licorice is far from boring. Manufacturers have revitalized the category with bold, creative flavor profiles, infusing a sense of mischief into their offerings. Even flavors that seem unlikely in confections are surprising and delighting adventurous consumers, encouraging social sharing and expanding the category’s appeal.
“We’re excited to focus on moving to natural colors across all our products by the end of 2026,” said Andy Peeters, Director of Marketing Operations for Kenny’s Candy. “While it is not a new focus for us, we’ve increased the priority based on what we believe our consumers want.”
“2026 has gotten off to a strong start for the candy category, with Q1 dollar growth outpacing the 52-week trend—and Darrell Lea USA is growing exponentially faster than the category itself, which is a real validation of the work we’ve put in,” said General Manager Mario DeAngelis. “As assortment across the store continues to expand, our priority has sharpened around relevance—making sure every product we bring to market earns its place by meeting a genuine consumer need or usage occasion. We’ve launched three new products over the past year and are excited to be introducing two additional varieties in Q3, including a new entry into a sub-category that we believe is underserved and ripe for the kind of quality and differentiation Darrell Lea brings.”
Licorice manufacturers are addressing their own unique challenges, but they are determined to overcome them. “We’re still learning how to support our retail partners’ ecommerce presence as best we can,” Peeters said.
“Darrell Lea is the number one Australian licorice brand globally and has a passionate, loyal following here in the US—but our most important work right now is converting shoppers who haven’t found us yet,” DeAngelis said. “Awareness and trial remain our primary challenge, and frankly it’s a crowded fight. We’re competing for shelf space, shopper attention, and share of a confectionery aisle that offers no shortage of choices. The good news is the product wins every time a consumer picks it up—our challenge is creating that first moment of trial. In 2026 we are investing more aggressively in trade and promotional programs than at any point in our US history, with a deliberate focus on reaching the better for you consumer—the shopper who wants a candy they feel good about that also happens to be the best licorice they’ve ever had. When we get in front of that shopper, we win. Our job is to get in front of more of them.”
Manufacturers are successfully leveraging innovation to develop unique and distinctive licorice products. “We’re excited about the new products we plan to launch at the Sweets & Snacks Expo,” Peeters said. “While most of our product line has focused on individual flavor profiles we’re excited to offer additional multi-flavored products with the launch of our Wiley Wallaby Duos. We think pairing some of our most enticing flavors like watermelon and lemonade in the same bag will be a pleasant surprise for our consumers.”
“For us, innovation lives in two places—flavor and form,” DeAngelis said. “We have an exceptional product development team in Australia that has a rare gift for translating authentic, craveable flavor experiences for the US consumer. Take our Pink Lemonade licorice as a perfect example. Think about pink lemonade the way you remember it as a kid—sitting outside on a summer afternoon, that sweet, slightly tart, unmistakably refreshing taste. That’s exactly what they captured in a piece of licorice, and it has been a standout. That’s the bar we set for every new flavor we bring to market—it has to transport you somewhere. Beyond flavor, we’re also pushing into new licorice styles and forms that expand what the category can be for a new generation of consumers. We’re just getting started, and if you want to see what’s next, come find us at Sweets & Snacks Expo—we think you’ll like what you see.”
Kenny’s Candy has continued to invest more in marketing. “The world class manufacturing that we execute led with a greater commitment and spend in marketing to expand brand awareness has us excited about where we can go. We’ve done some work to better understand our consumer and have adjusted many of our marketing campaigns,” Peeters said.
“There are two things that have us genuinely energized right now,” DeAngelis said. “First, innovation. We are expanding beyond our traditional licorice strength into new flavors and forms that complement the core while bringing fresh appeal to a broader set of consumers—if you want a preview, find us at Sweets & Snacks Expo, where we’ll be showcasing a fresh alternative to traditional licorice that we think is going to turn some heads. Second, the regulatory and consumer landscape has never been more aligned with who we already are. With all the noise around artificial dyes and synthetic ingredients, Darrell Lea hasn’t had to change a thing—we’ve always made our products without that stuff. What was once simply our standard is now a competitive advantage, and we intend to make sure consumers and retail partners know it. This is our moment and we’re leaning into it hard.”
