Candy Manufacturers NAICS 311340, 311351, 311352

Jan 30, 2026 - Hershey Raises the Bar

• The Hershey Company is increasing its marketing budget for its Hershey’s chocolate brand by 20% to fund its first new advertising campaign in eight years, The Wall Street Journal reports. The candy giant’s marketing overhaul has clear implications for candy manufacturers: the competitive bar for brand building is rising fast. By upping ad spending and shifting beyond its traditional seasonal playbook into TikTok influencers, cultural events, limited‑edition drops, and even a feature film, Hershey is signaling that year‑round consumer engagement is now essential in a category facing cost pressures and shifting consumer behavior. The company’s push toward trend‑based product iterations and experiential marketing suggests that major brands will invest more heavily in novelty, flavor experimentation, and cross‑platform visibility. At the same time, Hershey’s emphasis on familiarity and core‑brand trust highlights a parallel trend: manufacturers must balance innovation with reliability as consumers grow more price‑sensitive and selective.
• 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.

• Spending on candy this Halloween is expected to total $3.9 billion, according to the National Retail Federation’s annual consumer survey conducted by Prosper Insights & Analytics. That’s up from $3.6 billion in 2024. While inflation-wary consumers are bracing for high candy prices and are visiting discount stores to save money, two-thirds said they still expect to hand out candy. Candy makers are competing for consumers’ dollars. In August, Hershey rolled out its lineup of seasonal treats for Halloween, with new items including Twizzler Ghosts and Hershey’s Nuggets Pumpkin Spice Latte. In May, rival Mars released its “Halfway to Halloween” campaign by unveiling its 2025 holiday candy lineup alongside the second annual Mars Tricks, Treats and Trends report. Americans’ favorite candies are Reese’s Cups, followed by M&M’s, Hot Tamales, and Skittles.
• Producer prices for chocolate and confectionery manufacturers rose 11.4% in November compared to a year ago, after spiking 26.4% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have risen to record high levels driven by soaring input costs – notably cocoa for chocolate confections. Employment by chocolate and confectionery manufacturers shrank 9.3% year over year in November, while the average wage at food manufacturers rose 1.6% YoY in December to a new high of $24.25 per hour, BLS data show. Candy manufacturers are trimming payrolls as wages and input costs reach new highs. In the second quarter, after-tax profits for food companies plummeted 119% compared to a year ago and 119.3% from Q1, according to the Census Bureau.