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 1,700 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.

Seasonal Sales

Demand for candy is seasonal, and peaks during key holiday periods.

Industry size & Structure

A typical candy manufacturer operates out of a single location, employs 39 workers, and generates about $16-17 million annually.

    • The candy manufacturing industry consists of about 1,700 companies that employ 67,500 workers and generate $28 billion annually.
    • Chocolate confectionary manufacturing accounts for 63% of industry sales.
    • The candy manufacturing industry is concentrated - the top four chocolate confectionary manufacturing firms are about 58% 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 28, 2022 - Favorite Candies by State
                                  • Movie theater operator Cinemark in November revealed moviegoers’ favorite candy by state based on 2022 concessions data collected at its 320-plus US movie theaters. By far, Peanut M&Ms is the most popular candy with moviegoers, accounting for the top choice in 13 geographically diverse states – from Connecticut to Wisconsin to Texas. Cookie Dough Bites was a regional favorite in Pennsylvania and six nearby states. Red Vines licorice candy was preferred in California and five other western states, while both Twizzlers licorice and Nestle Buncha Crunch chocolate candy were top choice in four states, with Buncha Crunch reigning in the big states of Florida, Illinois, Michigan, and Minnesota.
                                  • The Hershey Company is making progress on its commitment to act on climate change, Candy Industry News reported in November 2022. Hershey – one of the world’s largest chocolate manufacturers – achieved a 48% reduction of its direct and indirect greenhouse gas (GHG) emissions and made significant progress toward its 2030 goal of a 50% absolute reduction, compared to a 2018 baseline, according to the company’s 2021 ESG report. The company also reported an 18% reduction in value chain emissions, on track to reach its goal of a 25% absolute reduction in such emissions by 2030, compared to a 2018 baseline. Priority ESG areas for Hershey include cocoa sustainability, environmental sustainability, responsible sourcing, and human rights. Recent initiatives include the launch of a third utility-scale solar project, energy and water optimization investments, and continued progress addressing land use change, according to Candy Industry News.
                                  • In a recent report, a group of global candy firms says they have made significant progress in their efforts to support consumers’ healthy eating choices, according to Candy Industry News. Five years ago, companies including Mars Wrigley, Ferrara Candy, Ferraro, Ghirardelli Chocolate, Lindt, and Russell Stover Chocolates created the Partnership for a Healthier America (PHA), which set health-minded goals for confectionery packaging and portion sizes. Today, half of the individually-wrapped products manufactured by PHA participating companies are available in sizes with 200 calories or fewer, up more than 38% compared to 2016. Over the same period, the share of confectionery products with front-of-pack calorie labels has grown from 53.7% to nearly 95%.
                                  • At a September 2022 meeting in Rome, several major chocolate and cocoa companies agreed to a data-sharing agreement that would better ensure sustainable cocoa production and sourcing, according to Confectionery Production. The European Cocoa Association (ECA) and the Association of Chocolate, Biscuit, and Confectionery Industries of Europe (Caobisco) said member firms would share their cocoa farmer data with authorities in the Ivory Coast and Ghana, both major cocoa producers. In recent years, cocoa and chocolate firms have mapped the locations of their cocoa sources to ensure supplies didn’t come from deforested areas. The data of individual firms will be compiled into shared datasets and given to Ghanaian and Ivorian authorities to improve overall traceability and sustainability in cocoa supply chains.
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