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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Starting a New Business
The barriers to entry for this industry are moderate, with the level of initial capital investment required being the most significant barrier. Producing candy and chocolate necessitates purchasing expensive machinery and renting or purchasing a facility to produce these goods. Prospective operators that are unable to secure sufficient capital for these initial investments will find it difficult to enter this industry.
One of the biggest threats that new entrants face is the extremely well-entrenched position of the industry's major players. These companies already experience high brand and customer loyalty, making it difficult for smaller operators to gain market share. Fur.. read more