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Last updated on April 23, 2014 at 21:24 EDT

Global Candy and Chocolate Manufacturing Industry Market Research Report from IBISWorld has Been Updated

December 17, 2012

The industry has remained resilient in the past five years, despite being faced with some sour challenges: The global food movement toward health and nutrition, especially in the developed world, has resulted in clever product innovation backed by aggressive advertising and promotional campaigns. For these reasons, industry research firm IBISWorld has updated a report on the Global Candy and Chocolate Manufacturing industry in its growing industry report collection.

Los Angeles, CA (PRWEB) December 16, 2012

Over the past five years, the Global Candy and Chocolate Manufacturing industry has been resilient to the wave of health-consciousness that has swept through developed nations, causing consumers to be wary of sugar-rich foods, including candy and chocolate. “Industry firms have been successful in developing new products that appeal to health-conscious consumers, keeping demand buoyant,” says IBISWorld industry analyst Olivia Tang. “The industry even stayed strong amid low consumer spending in a distressed global economy.” Although candy and chocolate are considered discretionary goods, consumers saw these products as a small, inexpensive treat to provide temporary escape from financial difficulties and other struggles that paralleled the difficult economic period. As the economy recovers, consumers will gain more disposable income and increase spending on industry goods, especially premium chocolates, which are anticipated to facilitate a 1.3% revenue boost in 2012. As a result of these factors, revenue is expected to rise at an annualized rate of 2.0% to $117.6 billion during the five years to 2012.

While revenue grew steadily over the past five years, profit was volatile due to fluctuating commodity costs. Sugar and cocoa, the Global Candy and Chocolate Manufacturing industry‘s most basic inputs, experienced double-digit spikes each year for most of the period. For the most part, “major companies were able to pass on cost increases more effectively than smaller firms due to higher brand loyalty,” Tang says. “Even for these firms, though, the recession made it difficult to fully pass on these costs to customers, and profit was squeezed through 2009.” In response, manufacturers have invested in more technology to improve operational efficiencies, reducing dependence on labor. Major companies like Kraft Foods Inc., Mars Inc., Nestle SA, Ferrero SPA and The Hershey Company wield significant power in the global market and have the ability to dictate direction and trends. However, the industry has a vast number of niche, small- to medium-size players (especially in Europe) that are still able to operate globally. In 2012, for instance, about 9,788 establishments are expected to be involved in cocoa, chocolate or sugar confectionery manufacturing globally.

In the next five years, global economic conditions are forecast to continue improving, allowing consumers in both developed and developing countries to afford more confectioneries, notably higher-margin premium chocolates. Producers will benefit from the projected surge in per capita consumption of candy and chocolate in developing countries like China and Russia, while also continuing to introduce new products to saturated markets like North America and Europe. To drive demand in these mature markets, firms will develop healthy products and new flavors to reignite demand. For more information, visit IBISWorld´s Global Candy and Chocolate Manufacturing industry report page.

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IBISWorld industry Report Key Topics

Firms in the Global Candy & Chocolate Manufacturing industry purchase and process sugar, cocoa, cornstarch, nuts, fruits, emulsifiers and flavorings as inputs for chocolate and confectionary production. Final products include chocolates, chewing gum, hard candies, marshmallows, toffee, gummies among others, which are then sold to downstream wholesalers and retailers.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique industry information and analysis. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/12/prweb10242360.htm


Source: prweb