The US candy manufacturing industry includes about 1,600 companies with combined annual revenue of about $20 billion. Major companies include The Hershey Company, Mars, Tootsie Roll Industries, and Russell Stover Candies. The 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. All three segments are concentrated.
The global candy manufacturing market generates about $150 billion in annual revenue, according to Business Insights. The US and Western Europe are the largest confectionery markets. Major companies outside the US include Nestlé and Barry Callebaut (both headquartered Switzerland); Cadbury (UK-based, but owned by US food maker Kraft); Ferrero (Italy); and Meiji Holdings (Japan).
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. The industry is capital-intensive: average annual revenue per employee is about $490,000.
Imports are a major source of competition for US producers. Most of the world's cocoa is produced outside the US; Hawaii is the only US cocoa source. For chocolate candy made directly from cocoa beans, imports account for about 85 percent of the US market. Imports account for about 20 percent of the US market for nonchocolate candy. ...
