Industry Analysis & Industry Trends
In the five years to 2016, falling sugar prices subdued selling prices, while preference shifts and rising health consciousness among consumers have caused industry demand to fall. Industry performance is expected to improve over the next five years due to growing consolidation and innovation by major players. In particular, producers are expected to introduce healthier products to mitigate adverse perceptions toward candy. In addition, sugar prices are expected to rise slowly, boosting the selling price of candy. Still, competition from chocolates and imports will limit strong revenue growth... purchase to read more
Industry Report - Starting a New Business Chapter
It is moderately difficult to enter the candy production industry. A sufficient amount of capital is needed to operate. More importantly, the industry is heavily regulated by the Food and Drug Administration with respect to content, safety, packaging and labeling standards. Compliance is costly and requires the employment of high-skill chemists, technicians and legal experts. In addition, entry requires guaranteed access to raw materials. This may be difficult in the absence of established relationships with upstream markets.
A more important issue for potential entrants is the ability to succeed after entry. High competition and concentration in the industry may be discouraging, especially given the brand-loyalty and large production scale enjoyed by large incumbents... purchase to read more