Candy Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                  Coronavirus Update

                                  Apr 26, 2022 - Industry Takes Aim at Deforestation to Protect Cocoa Supply
                                  • The National Confectioners Association (NCA) and World Cocoa Foundation (WCF) in April 2022 released policy principles calling for implementing a mandatory due diligence framework in the US to address the risk of deforestation in the cocoa supply chain and support efforts to restore and conserve forests. The NCA is calling for commitments from companies, governments, and other key stakeholders to deploy due diligence laws to increase cocoa supply chain transparency. Deforestation is a major issue in Côte d'Ivoire and Ghana, which together produce nearly two-thirds of the world's supply of cocoa, says the WCF.
                                  • The April 2022 World Agricultural Supply and Demand Estimates (WASDE) lowered US sugar ending stocks for 2021/22 by 125,000 short tons, raw value (STRV) to 1.567 million tons on smaller supply and larger use. The reduction translates to an ending stocks-to-use ratio of 12.5%, which is down by 1.1% from the prior month’s 13.6%. The US sugar supply is lowered as the reduction in beet and cane sugar production is only partially offset by the increase in imports. US sugar prices are nearly double international benchmark prices because the federal government protects the domestic sugar industry. Candy producers say government price supports for sugar have led to job losses among candy makers.
                                  • Sales of chocolate and candy reached a record high in 2021, according to an industry report published in March 2022 by the national Confectioners Association. Sales increased 11% in 2021 from a year earlier. About 71% of consumers mostly purchase candy at their primary grocery store and 83% take candy on their road trips.
                                  • The candy manufacturing industry’s employment has recovered from pandemic losses and is reaching record highs. In 2022, industry employment reached a February high not seen since 2006.
                                  • During the pandemic, consumers reached for traditional, comforting candies and manufacturers focused on making those candies and favors as supply chains and traditional shopping patterns were disrupted. Now, consumers have returned to shopping at brick-and-mortar stores and are looking to expand their experiences including candy and treats. Manufacturers are once again broadening their product selection with new flavor combinations and using more whole and natural ingredients, like spices.
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