Chocolate & Confectionery Production in the UK Industry Market Research Report Now Updated by IBISWorld

The Chocolate & Confectionery Production industry has found itself in a sticky situation during the past five years with the onset of the financial crisis, and the UKs subsequent descent into recession, gradually eroding consumer confidence which in turn lead to sharply curtailed spending on chocolate and confectionery products. The future of the industry is dependent on the forecast economic recovery, stable input prices and product innovation and IBISWorld forecasts that industry revenue will continue to decrease over the five years through 2018-19 but a gradual recovery is expected in the second half of the period.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend
IBISWorld industry market research
Rising input prices crunch profit, but products with a high cocoa content show promise

London, United Kingdom (PRWEB) May 17, 2013

The Chocolate & Confectionery Production industry has found itself in a sticky situation during the past five years. The onset of the financial crisis and the United Kingdom's descent into recession have gradually eroded consumer confidence, sharply constraining spending on chocolate and confectionery products. At the same time, rising cocoa, sugar and milk prices have increased production costs, but weak demand has limited producers' ability to pass these costs on to consumers, resulting in falling profitability. According to IBISWorld industry analyst Patrick Ross, “the organic and fair trade movements have gathered momentum over the past decade and created niche segments across the food and beverage sector”. Rising health consciousness has drained demand away from industry products in general, but also created opportunities for producers to develop low-sugar products. Imports have been capturing an ever greater share of domestic demand and become a threat to UK operators. In the five years through 2013-14, industry revenue is expected to decline at a compound annual rate of 2.8%. In 2013-14, industry revenue is forecast to decrease by 2.1% to £4.8 billion, its lowest value in over a decade.

The future of the industry is dependent on the forecast economic recovery, stable input prices and product innovation. Cocoa prices will remain subject to inflation as key producers stabilise their supply, and the situation could be worsened by adverse weather conditions. Pressure from imports will encourage consolidation and spark fierce competition that could kill off weak producers. The organic and fair trade movements are expected to gather further pace over the next five years, supported by the eventual resurgence in discretionary spending and consumer confidence. Ross adds, “the high cocoa content trend will help lift the industry as it will allow producers to pass higher organic cocoa prices on to consumers”. The sugar-free confectionery and chewing gum segments are also expected to grow, largely driven by the emphasis on health and nutrition. Over the next five years through 2018-19, IBISWorld estimates that industry revenue will continue to decrease, but recover gradually in the second half of the period.
The Chocolate & Confectionery Production industry has a medium level of market share concentration as the top four manufacturers account for 61.7% of industry revenue. Major companies include Mondelez International, Mars Chocolate UK and Nestle UK.

For more information on the Chocolate & Confectionery Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry is broken down into two subclasses: cocoa product production and sugar confectionery manufacture. Most of the cocoa product segment is made up of chocolate, but it also includes cocoa butter, cocoa fat and cocoa oil. The sugar confectionery segment covers the manufacture of chewing gum, caramel, nougat, lozenges, toffee and fondant.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


Contact

  • Gavin Smith
    IBISWorld
    310 866 5042
    Email