I suppose the confusion here is that the word "candy" has expanded from its technical meaning of crystalised sugar (ie, honey can "go candy") to cover all confectionery.
If I recall my local supermarket, one can find marshmallows in both the lolly/candy/sweets/confectionary aisle and some in the baking section too.
If I recall my local supermarket, one can find marshmallows in both the lolly/candy/sweets/confectionary aisle and some in the baking section too.