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 1,670 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.
Industry size & Structure
A typical candy manufacturer operates out of a single location, employs 49 workers, and generates about $22 million annually.
- The candy manufacturing industry comprises about 1,670 companies that employ 81,300 workers and generate $36.8 billion annually.
- Chocolate confectionery manufacturing accounts for 53% 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
Nov 30, 2024 - Prices Spike on Rising Input Costs
- According to the latest US Bureau of Labor Statistics data, producer prices for chocolate and confectionery manufacturing surged 22.7% in September compared to a year ago after rising a comparatively modest 7.1% in the previous September-versus-September annual comparison. The jump in industry producer prices to record highs is being driven by the rising cost of ingredients, most notably cocoa. Employment by candy manufacturers grew 2.5% year over year in September as the industry took on workers ahead of its December peak for employment, per the BLS. Sales and after-tax profits for the food industry, which includes candy manufacturers, are falling sharply.
- Chocolate and candy makers stung by high ingredient prices this year likely are in for more of the same in 2025, Candy Industry reports. According to Ofir Ardon, chief business officer of crop supply intelligence company Agritask, three key trends will affect the food industry and candymakers in 2025. First, climate change will continue to drive unpredictability in agricultural commodity supplies, leading to volatility in prices for key ingredients like cocoa, sugar, and nuts, and driving companies to focus on supply chain resilience and diversification. Second, the confectionery industry will prioritize ingredient quality as a key factor in consumer purchasing decisions. Third, sustainability will remain a top priority, with companies adapting to climate impacts and consumer awareness, which will drive innovation in sourcing, packaging, and production methods to reduce environmental footprints. Continued volatility in the cocoa market in 2025 especially will significantly impact the confectionery industry's inventory management strategies.
- Halloween candy sales were expected to top last year’s record haul by 3-5%, according to a recent survey from the National Confectioners Association (NCA). In 2023, Halloween – a key revenue driver for candy manufacturers – drove $6.4 billion in confectionery retail sales, aided by record-high price inflation, according to NCA figures. Other findings from the NCA survey include that 97% of Americans who welcome trick-or-treaters will hand out chocolate and candy, and two-thirds of those people say they give trick-or-treaters two or three pieces of candy. According to a new Advantage Outlook survey of Halloween shoppers, 46% of candy shoppers will purchase based on what has good value/price, while 42% will purchase goods with promotions or sales. This Halloween, half of shoppers plan to spend $51 or more on candy.
- To reverse the longstanding decline in chewing gum sales, Mars Wrigley is launching an international ad campaign that abandons the usual promises such as fresh breath or great taste and emphasizes mindfulness instead, The Wall Street Journal reports. A new ad for its Extra brand claims the act of chewing gum can quell anxiety, improve focus, and boost confidence. While the US gum market rebounded to $3.39 billion in sales in 2023 – surpassing sales of $3.15 billion in 2019 and erasing its pandemic plunge, according to data from Circana, the increase in sales was largely due to inflation, with unit sales falling as prices per unit jumped nearly 50%, WSJ reports. According to Euromonitor, US gum sales peaked in 2010. Mars Wrigley is also trying to get more consumers to purchase gum online by creating purchase opportunities at ecommerce checkouts and devising potential gum subscription products.
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