Sweet tooth: Premium offerings and lower input prices will widen profit margins

The Confectionery Wholesaling industry includes merchant wholesalers that distribute candy and snack products to a variety of retailers, including grocery stores, convenience stores and mass merchandisers. Driven by renewed consumer spending on potato chips, chocolate candy bars and other packaged snacks, the industry performed well over the first half of the past five years. IBISWorld expects the next five years to remain sweet for the industry. Continued economic recovery will further boost consumer spending on confectionery and snacks, especially on gourmet, premium dark chocolate and gummy candy products. Although nutritional concerns will slightly hamper growth prospects, continued development and distribution of healthier confections are likely to mitigate this threat...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • A swift postrecession recovery was driven by rising demand for premium confectioneries and increased industry consolidation
  • Manufacturers have experimented with new flavors, combinations, textures and marketing concepts
  • Health and nutrition trends will continue to threaten demand for traditional candy
  • Industry Report - Industry Key Buyers Chapter

    The Confectionery Wholesaling industry has a moderate level of concentration in which the largest four companies, including the wholesale distribution offices of major candy and snack manufacturers (formally known as MSBOs), are expected to generate 58.2% of total industry revenue in 2017. The level of concentration among operators that both manufacture and distribute is much higher than market share concentration among operators that simply redistribute confectioneries from manufacturers to retailers. In particular, the four largest manufacturing and distributing operators, which are PepsiCo (Frito-Lay North America), Mars Co, The Hershey Company and Nestle, hold a combined 51.3% share of the entire industry. In ...purchase to read more.

    Additional Insights for the Confectionery Wholesaling Industry

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

  • Proximity to key markets
  • Having a cost-effective distribution system
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Healthy eating index and Per capita sugar and sweetener consumption in the Confectionery Wholesaling industry impact industry performance..

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    What's in this report

    What is the Confectionery Wholesaling Industry?

    Operators in this industry primarily wholesale a range of chocolate and nonchocolate candy, in addition to a range of savory snacks, such as nuts, popcorn and chips. Industry operators resell these products to supermarkets, specialty confectionery retail outlets, convenience stores and vending machine operators.

    Industry Products
  • Chocolate
  • Candy and chewing gum
  • Chips, popcorn and other savory snacks
  • Packaged nuts
  • Industry Activities
  • Candy wholesaling
  • Chewing gum wholesaling
  • Potato chips wholesaling
  • Chocolate candy wholesaling
  • Freshly made confectionery wholesaling
  • Corn chips and related corn snacks wholesaling
  • Fountain fruits and syrups wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Healthy eating index
  • Per capita sugar and sweetener consumption
  • Consumer Confidence Index
  • Number of adolescents aged 10 to 19
  • Price of sugar

  • Current Performance
  • Product trends
  • Profit expansion
  • Industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Health trends and changing consumer tastes
  • Industry composition
  • Table: Confectionery Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Confectionery Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Specialty Food Stores
  • Gas Stations with Convenience Stores
  • Warehouse Clubs & Supercenters
  • Vending Machine Operators

  • Key Selling Industries
  • Candy Production
  • Chocolate Production
  • Snack Food Production

  • Products & Services
  • Chips, popcorn and other savory snacks
  • Chocolate
  • Other
  • Candy and chewing gum
  • Packaged nuts
  • Chart: Confectionery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other Wholesalers
  • Grocery stores and supermarkets
  • Mass merchandisers and department stores
  • Convenience stores
  • Dollar stores and pharmacies
  • Warehouse clubs
  • Specialty candy stores and other
  • Foodservice and hospitality
  • Chart: Major Market Segmentation for the Confectionery Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Confectionery Wholesaling

  • Basis of Competition
    QualityPriceDistributionInnovation and differentiation
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Confectionery Wholesaling Industry

  • Industry Globalization
    Frito-Lay North America, The Hershey Company, Mars Inc., McLane Company Inc., Performance Food Group Company,
  • Table: Frito-Lay North America - financial performance
  • Table: The Hershey Company - financial performance
  • Table: Mars Inc. - financial performance
  • Table: McLane Company Inc. - financial performance
  • Table: Performance Food Group Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Confectionery Wholesaling 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 Confectionery Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita sugar and sweetener consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Molecules which inhibit oxidation of other molecules and thereby suppress the creation of free radicals, which some have speculated may contribute to the development of cancer and heart disease.
  • Cacao
  • Cacao is the raw material extracted from the seeds pods of the theobroma cacao tree, an evergreen plant native to the tropics. Once cacao is picked, roasted and processed, it becomes cocoa.
  • Cocoa
  • Raw Cacao is processed into cocoa, which is then used to produce chocolate. Most mainstream chocolate products are made from Dutch process cocoa, which has a lower acidity than raw cacao.
  • Manufacturers' Sales Branches And Offices (Msbos)
  • A confectionery manufacturer that maintains merchant wholesale operations for its own products.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Confectionery Wholesaling 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 Confectionery Wholesaling:
    • 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 Confectionery Wholesaling 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 Confectionery Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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