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 1,640 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 43 workers, and generates about $17-18 million annually.

    • The candy manufacturing industry consists of about 1,650 companies that employ 81,300 workers and generate $28.5 billion annually.
    • Chocolate confectionery manufacturing accounts for 63% 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 30, 2024 - Rise in Candy Prices Continued in 2023
                                  • Producer prices for chocolate and confectionery manufacturing extended their three-year climb in 2023, up 6.5% for the year and 26.8% since the beginning of 2021. Producer prices for candy and nuts also rose – albeit less dramatically – in 2023 rising 2.7% through September. Candy prices continue to rise despite falling sales for the broader food industry, which declined in the second quarter year over year. Employment by candy manufacturers grew by 2.5% through November but fell from its peak in December 2022.
                                  • The United States is the world’s largest market for candy consumption, followed by China and the UK, according to Gitnux market data. Revenue in the confectionery segment in the US is expected to grow by 3.18% and reach a peak by 2026, Gitnux reports. US consumption of chocolate and other candy is expected to grow from about $268.1 million in 2020 to $275 million this year. Consumers between the ages of 25 to 45 account for the majority of confectionery consumption while shoppers older than 34 purchase more candy than those between the ages of 18 and 34. Overall, US consumers spend approximately $9.1 billion annually on candy, with the average American consuming 25 pounds of candy per year, according to Gitnux data.
                                  • A new California state law banning chemicals found in Peeps, Pez, and other popular candies is slated to take effect in January 2027. The four banned chemicals – brominated vegetable oil (BVO), potassium bromate, propylparaben, and red dye No. 3 – are all commonly found in sweets and some processed foods. Red dye No. 3, a food coloring found in Pez, Hot Tamales, and Sweethearts, has been linked to cancer. The chemicals are banned in Europe. The bill (AB 418) bans the sale, manufacture, and distribution of foods containing chemicals that have been linked to health risks and could have national repercussions. The bill initially included a fifth food additive, titanium dioxide, which was dropped.
                                  • ‘Tis the season for consuming seasonal chocolates and candies, key drivers of confectionery sales, according to the National Confectioners Association (NCA). A new report – Getting to Know Seasonal Chocolate & Candy Consumers – found that nearly two-thirds (64%) of total chocolate and candy sales are attributed to the big four seasons – Valentine’s Day, Easter, Halloween, and the winter holidays – presenting candy manufacturers with opportunities to innovate by creating new seasonal products and candy makers and retailers with enhanced merchandising opportunities. NCA also cites secondary seasons and micro-occasions like Mother’s Day and back-to-school as opportunities to boost candy sales. The survey, conducted by 210 Analytics with sales data by Circana, also found that 88% of consumers like to see new items when browsing for seasonal chocolate and candy. Holidays are times of permissibility, with 96% of US consumers agreeing that it’s perfectly fine to enjoy some treats during the holidays, per the NCA report.
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