Low sugar: Competition from chocolates and imports has caused revenue to briefly decline

Health concerns and heightened competition have challenged the Candy Production industry's growth over the past five years. Consumers are becoming warier of sugar-rich, high-calorie products. Furthermore, the remaining consumption of sweets is increasingly shifting toward chocolate. In response to volatile demand and price conditions, major players have been actively engaging in mergers and acquisitions, which keep per-unit costs of production low via economies of scale. Over the five years to 2023, IBISWorld expects demand conditions to improve slightly as operators expand sugar-free and low-calorie product lines...purchase to read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
-0.3%
Forecast Growth 18-23
Profit
Employment
17,616
Businesses
489

Industry Threats & Opportunities

  • Demand conditions are expected to improve as operators expand sugar-free and low-calorie product lines
  • Consolidation has helped profit margins remain high despite rising competition
  • Imports will satisfy a rising portion of domestic demand, stiffening competition for operators
  • Industry Report - Industry Key Buyers Chapter

    The Candy Production industry is characterized by a high level of market share concentration, with the top four players expected to account for 82.2% of revenue in 2018. The most notable development in the competitive landscape over the past five years has been Farley's and Sathers Candy Company's acquisition of Ferrara Pan Candy Company. The merger combined two of the largest industry players into the Ferrara Candy Company, operative since 2012. Another important albeit earlier development is Mars Inc.' acquisition of Wrigley, which added to the company's portfolio chewing gum, Skittles and Starburst products, all of them industry-specific and significant...purchase to read more.

    Additional Insights for the Candy Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Candy Production Industry are

  • Ability to adapt to change
  • Product differentiation
  • Supply contracts for key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from chocolate production and Per capita disposable income in the Candy Production industry impact industry performance..

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    What's in this report

    What is the Candy Production Industry?

    The Candy Production industry produces confectionery such as breakfast bars, candied fruits, fudge, Halvah, marshmallows and toffee. Finished goods are distributed to confectionery and grocery wholesalers and retailers, which then sell the candy to households and other consumers. The industry does not produce chocolates, chocolate confectionery, ice cream or frozen yogurt.

    Industry Products
  • Soft candy
  • Chewy candy
  • Hard candy
  • Gum
  • Industry Activities
  • Producing chewy candy, including granola and breakfast bars
  • Producing soft candy
  • Producing hard candy
  • Producing gum
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from chocolate production
  • Per capita disposable income
  • Per capita sugar and sweetener consumption
  • Price of sugar
  • Trade-weighted index

  • Current Performance
  • Weak demand and falling prices
  • Consolidation
  • Innovation and shifting product mix
  • Chart: Revenue Growth

  • Industry Outlook
  • Limited gains
  • Profit margins
  • Demographic shifts
  • Table: Candy Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Candy Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Confectionery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Consumers

  • Key Selling Industries
  • Baking Mix & Prepared Food Production
  • Coated & Laminated Paper Manufacturing
  • Fruit & Nut Farming
  • Margarine & Cooking Oil Processing
  • Orange & Citrus Groves
  • Sugar Processing

  • Products & Services
  • Chewy candy
  • Gum
  • Other
  • Soft candy
  • Hard candy
  • Chart: Candy Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Confectionery wholesalers
  • Retail stores
  • Mass merchandisers
  • Export markets
  • Other markets
  • Chart: Major Market Segmentation for the Candy Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Candy Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Candy Production Industry

  • Industry Globalization
    Mars Inc., The Hershey Company, Ferrara Candy Company, Mondelez International Inc.,
  • Table: Mars Inc. - financial performance
  • Table: The Hershey Company - financial performance
  • Table: Ferrara Candy Company - financial performance
  • Table: Mondelez International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Candy Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Candy Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of sugar (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Emulsifier
  • A molecule with one water-loving (hydrophilic) and one oil-loving (hydrophobic) end that enables water and oil to finely disperse in each other.
  • Hard Candy
  • Candy such as candy cane, boiled sugar candy and candy pops, which do not typically possess the sophisticated ingredients and flavors of modern soft candies.
  • Panning
  • A process of building candy pieces from single units, such as grains of sugar, nuts or candy centers, and tossing them in revolving pans while adding flavor, color and other ingredients.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Candy Production is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Candy Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Candy Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Candy Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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