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.

Jul 30, 2026 - El Niño Poses Threat to Cocoa Crop

• 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.
• 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 3.3% in June compared to a year ago, after climbing 15.3% in the previous June-to-June 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 9.6% year over year in June and 1.7% versus May, according to the Labor Department’s June 2026 Consumer Price Index report. Employment by the industry shrank 1.7% YoY in May, while the average wage at food manufacturers rose 2% YoY in June to a new high of $24.54 per hour, BLS data show. Candy manufacturers are trimming payrolls as wages and input costs reach new highs.

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.