Industry Analysis & Industry Trends
The Global Candy and Chocolate Manufacturing industry has grown sluggishly over the past five years. Industry revenue grew slowly over the five years to 2016 as consumers in developed markets became more attentive to sugar consumption, limiting their intake of nonchocolate candy. Although chocolate candy remains popular in both developed and emerging markets, volatile cocoa prices over the period have induced operators to lower selling prices, limiting revenue from the chocolate segment. Still, IBISWorld expects the industry to grow slightly as operators continue to cater product innovation to a health-conscious market. Moving forward, IBISWorld expects the industry to benefit from further demand from emerging markets, expanding revenue.
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The Global Candy and Chocolate Manufacturing industry exhibits a moderate to high level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labor in the industry, $0.27 will be spent on capital in 2016. This represents a decrease from five years prior. Although modern manufacturing plants require sophisticated technology and equipment to process ingredients, therefore extolling depreciation costs, labor remains central to production, especially for manufacturers in developing countries. More labor has been employed over the past five years to accommodate growing demand and production, thereby keeping capital costs moderate in comparison... read more