Industry Analysis & Industry Trends
The Global Candy & Chocolate Manufacturing industry is nothing to snicker at; it has remained resilient despite a recessive global economy, falling disposable incomes, volatile commodity prices and increasing competition from substitutes. The advent of the health-conscious consumer has required producers to be innovative with their product lines and adapt them to constantly changing consumer trends. In the five years through 2012, industry revenue is expected to increase at an annualized 2.0%.
The high level of value addition during the production process has enabled the industry's major players to realize high profit margins and perform well in spite of recessive economic conditions. In 2012, industry revenue is expected to grow by 1.3% to $117.6 billion... read more
The industry requires a high level of capital investment, as measured by capital to labor ratio. In 2012, IBISWorld estimates that this ratio will be 1:2.7, that is, for every dollar of capital invested in plant and equipment, approximately $2.70 is spent on labor or wages. Modern manufacturing plants require high levels of capital expenditure on sophisticated technology and equipment that aim to increase productivity without the need for additional labor. However, the industry requires more labor than related industries due to more complex product sorting and a greater diversity in output. For example, in 2008 Wrigley's labor force grew by 3.8% despite an investment of $251 million in plant, equipment and technology... read more