Candy Manufacturers

The 1,682 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.

Seasonality

Demand for candy peaks during key holiday periods, with nearly two-thirds (64%) of total confectionary sales occurring during four holidays.

Sep 30, 2026 - Cocoa Price Swings Spark Product/Supply Chain Changes

• Candy manufacturers are changing their products and supply chains to protect against volatile cocoa prices, Supply Chain Drive reports. Cocoa hit a record $10.70 per kilogram in January 2025 before falling to $3.24 in March 2026 and then rising to $4.36 in June. Despite the recent relief, weather could send prices higher again. Toblerone maker Mondelez is reducing its reliance on cocoa by developing products with more nougat, caramel, nuts, and fruit, as well as experimenting with cell-cultured chocolate. Rival Hershey has diversified its cocoa sourcing across regions and is closely tracking weather, fertilizer use, and crop conditions to anticipate supply changes. For candy makers, these strategies highlight a broader shift toward more diversified sourcing, alternative ingredients, and new product reformulations to reduce exposure to cocoa shortages and price spikes while protecting profit margins.
• The growing likelihood of an El Niño event during the 2026/27 growing season could prolong the cocoa supply challenges that have driven record cocoa prices, creating additional cost pressure for candy manufacturers, Coffee Trading Academy reports. NOAA forecasts a better than 90% chance of El Niño developing in the second half of 2026, raising the risk of hot, dry weather in West Africa, which produces about half of the world's cocoa, and excessive rainfall and disease pressure in parts of South America. A strong or "super" El Niño could reduce yields, delay the recovery from the 2023/24 cocoa shortage and disrupt transportation and bean quality in key producing regions. For candy manufacturers, another weak cocoa harvest would likely keep ingredient costs elevated, pressure profit margins and encourage continued price increases, product reformulation and hedging strategies.
• 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 1.6% in August compared to a year ago, after climbing 16% in the previous August-to-August annual comparison, according to the latest US Bureau of Labor Statistics data. While industry producer prices have retreated from last fall’s record high levels driven by soaring input costs, most notably cocoa for chocolate confections, they remain historically high. At retail, candy and gum prices rose 8.1% year over year in August but dipped 0.4% from July, according to the Labor Department’s August 2026 Consumer Price Index report. Employment by the industry shrank 5.4% YoY in July, while the average wage at food manufacturers rose 2.9% over the same period to a new high of $24.78 per hour, BLS data show. Candy manufacturers are trimming payrolls as wages and input costs rise.

Industry size & Structure

A typical candy manufacturer operates out of a single location, employs 55 workers, and generates about $27 million annually.

• The candy manufacturing industry comprises about 1,682 companies that employ 72,458 workers and generate $33.8 billion annually.
• Chocolate confectionery manufacturing accounts for 54% of industry sales.
• The candy manufacturing industry is concentrated - the top four chocolate confectionary manufacturing firms account for about 51% of category sales. While non-chocolate confectionary manufacturing is less concentrated, large firms still dominate - the top 20 companies are 68% of category sales.
• Large companies include Mars Wrigley, Hershey, Nestle, and Tootsie Roll Industries.