Candy Manufacturers NAICS 311340, 311351, 311352

May 30, 2026 - Chocolatiers Seek Alternatives Amid Cocoa Price Volatility

• Chocolate makers are reducing their reliance on cocoa and reformulating products after extreme cocoa price volatility drove their costs sharply higher, The Wall Street Journal reported in April. Manufacturers are experimenting with smaller portion sizes, alternative ingredients, and recipes with less cocoa to protect margins and stabilize pricing. For candy manufacturers, especially smaller producers, cocoa inflation increases pressure on profitability, pricing strategies, and product development. Companies are also facing challenges securing long-term cocoa supplies as poor harvests, climate issues, and supply chain disruptions affect major cocoa-producing regions in West Africa, according to WSJ. The situation may accelerate innovation in confectionery formulations, premium pricing strategies, and investments in supply chain diversification. Larger candy makers with stronger purchasing power and hedging capabilities may be better positioned than smaller competitors to manage ongoing commodity volatility.
• US confectionery sales reached a record $55 billion in 2025, demonstrating strong consumer demand despite economic uncertainty, the National Confectioners Association reported in March. Nearly all households (99.8%) purchased candy, chocolate, gum, or mints, underscoring the category’s resilience and everyday relevance. Sales are projected to grow to $62.2 billion by 2030. Seasonal events remain critical, accounting for 63% of sales, though everyday and alternative gifting occasions are expanding. Chocolate leads with 51.7% market share, while non-chocolate candy continues to grow, especially among Gen Z and Millennials, who favor innovative flavors and textures. Nostalgia is a key trend, with strong interest in retro product re-releases. Consumers view confectionery as an affordable indulgence, with most enjoying it multiple times per week in moderation, according to NCA. Overall, the industry is benefiting from consistent demand, innovation, and strong emotional connection with consumers, positioning it for continued growth.

• Amid rising consumer concern and regulatory pressure over microplastics in chewing gum, companies are under pressure to reformulate their products, Food Navigator reports. Plastic-free alternatives, based on natural or biodegradable polymers, are gaining traction in response to sustainability concerns and potential legislation restricting microplastic content. For gum manufacturers, this trend has several impacts: they may face R&D costs to develop new formulations that maintain chewability, flavor release, and shelf stability without synthetic polymers; supply-chain adjustments to source natural gums or plant-based alternatives; and potential marketing advantages by promoting environmentally-friendly products. Companies that fail to adapt risk losing shelf space or consumer trust. Overall, the shift toward microplastic-free gum is reshaping production processes, ingredient sourcing, and product positioning in the confectionery sector. As demand for plastic-free gum grows, the global market is expected to grow from $132 million at present to $242 million by 2031, per FN.
• Producer prices for chocolate and confectionery manufacturers fell 3.7% in April compared to a year ago, after climbing 17.8% in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have retreated from last fall’s record high levels driven by soaring input costs, most notably cocoa for chocolate confections. At retail, candy and gum prices rose 7.6% year over year in April but fell 1.9% versus March, according to the Labor Department’s April 2026 Consumer Price Index. Employment by the industry shrank 9.2% YoY in March, while the average wage at food manufacturers rose 1.4% YoY in April to $24.27 per hour, just shy of its peak in January, BLS data show. Candy manufacturers are trimming payrolls as wages and input costs reach new highs.