As the global economy improves, consumers will increasingly indulge themselves in premium, yet inexpensive and feel-good luxuries such as chocolate and candy.
Los Angeles, CA (PRWEB) June 12, 2012
The Global Candy & Chocolate Manufacturing industry is nothing to snicker at; it has remained resilient despite a recessive global economy, falling disposable incomes, volatile commodity prices and increasing competition from substitutes. The advent of the health-conscious consumer has required producers to be innovative with their product lines and adapt them to constantly changing consumer trends, according to IBISWorld industry analyst Naren Sivasailam. In the five years through 2012, industry revenue is expected to increase at an annualized 2.0%.
The high level of value addition during the production process has enabled the industry's major players to realize high profit margins and perform well in spite of recessive economic conditions, Sivasailam says. In 2012, industry revenue is expected to grow by 1.3% to $117.6 billion. The high brand loyalty commanded by the major players has contributed to high profit margins and sales growth during times of high input costs. The presence of mature and stagnant markets, particularly in the developed regions of the United States, European Union and Australia, has caused production to shift towards the growing South East Asia region.
As global economic conditions improve, IBISWorld expects sustained consumption of chocolate and confectionery as consumers choose to indulge themselves in premium, yet inexpensive and feel-good luxuries such as chocolate and candy. Additionally, growth segments such as sugar-free confectionery and organic and fair-trade chocolate have shown considerable promise and are expected to continue to grow in the next five years. Strong brand loyalty combined with new product innovations and aggressive marketing strategies will help the industry ride through the current economic storm relatively unscathed. To this end, IBISWorld estimates that revenue in the Global Candy & Chocolate Manufacturing industry will increase in the five years to 2017. The top four major players - Hershey Company, William Wrigley Jr. Company, Barry Callebaut AG and Perfetti Van Melle - account for just under half of the industry. For more information, visit IBISWorld’s Global Candy & Chocolate Manufacturing industry report page.
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IBISWorld industry Report Key Topics
The Global Candy & Chocolate Manufacturing industry is primarily engaged in shelling, roasting and grinding cocoa beans to make chocolate cocoa products and confectioneries; the production of chocolate candy products where the chocolate ingredient is bought from producers; and making a range of sugar and non-sugar candies and chewing gum from ingredients such as starch, fruit, preservatives, emulsifiers and flavorings.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. 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.