|Last Quarterly Update:||10/21/2013|
|SIC Codes:||2064, 2066, 2067|
|NAICS Codes:||311340, 311351, 311352|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
The candy manufacturing industry includes three major segments: companies that make chocolate from beans, companies that use purchased chocolate to make candies, and companies that make nonchocolate candy. Major companies include The Hershey Company and Mars (both based in the US), Cadbury (UK-based, but owned by US food maker Mondelez International), Barry Callebaut and Nestlé (both based in Switzerland),and Ferrero (Italy).
Worldwide, the candy manufacturing market generates more than $150 billion in annual revenue, according to Business Insights. The US and Western Europe are the largest confectionery markets. Rising incomes are fueling growth in emerging markets like Latin America, Asia/Pacific, and Eastern Europe.
The US candy manufacturing industry includes about 1,600 companies with combined annual revenue of about $23 billion. Industry growth drivers include new flavor offerings and healthier products.
Demand is driven by consumer tastes and population growth. The profitability of individual companies depends on manufacturing efficiency, supply chain efficiency, and marketing. Large companies have advantages in economies of scale in manufacturing and purchasing. Small companies can compete effectively by offering premium and specialty products. All three industry segments -- companies that make chocolate from beans, companies that use purchased chocolate to make candies, and companies that make nonchocolate candy -- are concentrated.
Imports are a major source of competition for US producers. Most of the world's cocoa is produced outside the US; Hawaii is the only US cocoa source. For ...
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