Candy Manufacturing Industry Overview

Excerpt from Candy Manufacturing Report

The candy manufacturing industry includes three major segments: companies that make chocolate from beans, companies that use purchased chocolate to make candies, and companies that make nonchocolate candy. Major companies include Barry Callebaut and Nestlé (both headquartered in Switzerland), The Hershey Company and Mars (US), Cadbury (UK-based, but owned by US food maker Mondelez International), and Ferrero (Italy).

Competitive Landscape

Demand is driven by consumer tastes and population growth. The profitability of individual companies depends on manufacturing efficiency, supply chain efficiency, and marketing. Large companies have advantages in economies of scale in manufacturing and purchasing. Small companies can compete effectively by offering premium and specialty products. All three industry segments -- companies that make chocolate from beans, companies that use purchased chocolate to make candies, and companies that make nonchocolate candy -- are concentrated.

Products, Operations & Technology

Candy made from purchased chocolate accounts for about half of industry revenue, nonchocolate candy for about 30 percent, and chocolate for about 20 percent. Nonchocolate candies include a wide variety of products: jellybeans, chewing/bubble gum, marshmallows, mints, and hard candies.