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
Jan 30, 2025 - Producer Prices Soaring
- The producer price index (PPI) for chocolate and confectionery manufacturing, which measures prices producers receive for their output, soared 33.5% in December compared to a year ago after rising a comparatively modest 7% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. The steep rise in producer prices for makers of chocolate confections is being fueled by the rising cost of ingredients, most notably cocoa which topped $12,000 per ton in December on supply concerns. By comparison, the PPI for candy and nuts rose 9.3% year over year in December. Meanwhile, employment by candy manufacturers fell 1.7% YoY in November, BLS data shows. Sales and after-tax profits for the food industry, which includes candy manufacturers, declined in the third quarter year over year, per the Census Bureau.
- Farmers in the world’s top cocoa-producing regions are abandoning their crops despite high record prices, The Wall Street Journal reported in January. A combination of bad weather, disease, and failed government policies – intended to protect cocoa farmers from volatile swings in global markets – has farmers in Ghana and Ivory Coast uprooting their cocoa crops and reseeding fields. Cacao swollen-shoot virus, a disease that causes root necrosis and kills cocoa trees, has afflicted cocoa crops in recent years. Another factor in farmers’ decisions to abandon cocoa is faulty government policies, including a fixed price that the countries pay farmers for their beans, that’s prevented growers from profiting on the price rise, WSJ reports. Cocoa production in Ivory Coast dropped 22% during the 12-month season that ended Sept. 30, from the same period a year earlier, while Ghana’s output plunged 27% over the same period, according to the International Cocoa Organization.
- 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.
- 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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