Candy Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,640 candy manufacturers in the US combine chocolate, sugar, and other raw ingredients to produce confections and chocolate-based products. Products consist primarily of chocolate and non-chocolate candies. Chocolate candies include bars, baking chocolate, coatings, syrups, liquors, powdered cocoa, fudge, and covered nuts. Non-chocolate candies include gum, chewy candy, hard candy, jelly candy, licorice, marshmallows, and toffee.
Variability in Raw Ingredient Costs
The cost of raw ingredients used in candy manufacturing can vary significantly from year to year, according to trends in commodity prices.
Seasonal Sales
Demand for candy is seasonal, and peaks during key holiday periods.
Industry size & Structure
A typical candy manufacturer operates out of a single location, employs 43 workers, and generates about $17-18 million annually.
- The candy manufacturing industry consists of about 1,650 companies that employ 81,300 workers and generate $28.5 billion annually.
- Chocolate confectionery manufacturing accounts for 63% of industry sales.
- The candy manufacturing industry is concentrated - the top four chocolate confectionary manufacturing firms are about 53% of category sales. While non-chocolate confectionary manufacturing is less concentrated, large firms still dominate - the top 20 companies are 76% of category sales.
- Large companies include Mars Wrigley, Hershey, Nestle, and Tootsie Roll Industries.
Industry Forecast
Candy Manufacturers Industry Growth
Recent Developments
Mar 30, 2024 - Ingredients Driving Up Candy Prices
- A trip to the candy store is getting more expensive driven by increases in the price of sugar, cocoa, and other inputs. Candy and nuts manufacturers and makers of chocolate and confectionery products each hiked prices last year and retail candy prices continued to climb in 2024. Prices paid by consumers for candy and chewing gum were 5.8% higher in February than a year ago, outpacing broader inflation, which was 3.2% in February, according to the US Bureau of Labor Statistics. Meanwhile, employment by candy manufacturers fell 2.7% in December compared to a year ago after posting a flat previous annual comparison, according to the BLS.
- The price of cocoa, a key ingredient in chocolate confections, has tripled over the last 12 months, Reuters reports. In mid-March, May cocoa futures added $438 a metric ton to end at $7,405 in New York, nearly three times the price compared to a year ago and 38% above the previous record set in July 1977 during an earlier period of poor growing conditions in West Africa that shrank the global supply. Most of the world’s cocoa is grown in West Africa where unusually wet weather followed by hot, desert air led to a weak harvest and diminished stockpiles for the second consecutive year. The surge in cocoa prices has chocolatiers, confectioners, and big food companies raising prices, tweaking recipes, and shrinking products, WSJ reports. Some, including Mondelez, are promoting more non-chocolate Easter treats as the soaring price threatens profits and inflation-weary shoppers balk at high prices, Reuters reports.
- The US is the world’s largest market for candy consumption, followed by China and the UK, according to Gitnux market data. Revenue in the confectionery segment in the US is expected to grow by 3.18% and reach a peak by 2026, Gitnux reports. US consumption of chocolate and other candy is expected to grow from about $268.1 million in 2020 to $275 million this year. Consumers between the ages of 25 to 45 account for the majority of confectionery consumption while shoppers older than 34 purchase more candy than those between the ages of 18 and 34. Overall, US consumers spend approximately $9.1 billion annually on candy, with the average American consuming 25 pounds of candy per year, according to Gitnux data.
- A new California state law banning chemicals found in Peeps, Pez, and other popular candies is slated to take effect in January 2027. The four banned chemicals – brominated vegetable oil (BVO), potassium bromate, propylparaben, and red dye No. 3 – are all commonly found in sweets and some processed foods. Red dye No. 3, a food coloring found in Pez, Hot Tamales, and Sweethearts, has been linked to cancer. The chemicals are banned in Europe. The bill (AB 418) bans the sale, manufacture, and distribution of foods containing chemicals that have been linked to health risks and could have national repercussions. The bill initially included a fifth food additive, titanium dioxide, which was dropped.
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