Sweet and sour: Rising exports will buoy the industry despite declining domestic demand

The Candy Production industry sells its products to retailers and wholesalers for redistribution to consumers. As a result, industry performance relies on domestic demand well as on global demand. Although some industry products, such as breakfast bars, are growing in popularity, increasing health consciousness has soured overall demand for candy products. In recent years, the industry has become more export-intensive and, subsequently, consolidated. Operators have found some respite in the US market for candy, which receives the majority of exports. Canada's southern neighbour has displayed more resilient demand for candy due to a large population, high incomes and a strong US dollar...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
-2.0%
Forecast Growth 17-22
Profit
Employment
3,786
Businesses
106

Industry Threats & Opportunities

  • Operators will respond to rising health-consciousness with new, lower-sugar products
  • Operators have found respite in export markets, especially the US market
  • Canadians are expected to remain attentive to and to the link between health problems and sugar intake
  • Industry Report - Starting a New Business Chapter

    It is increasingly difficult to enter the Candy Production industry in Canada, primarily due to lack of demand. Competition for remaining demand, both domestic and international, is high, compounding the challenges of entry into this declining industry.The industry's current major players are a significant barrier to new entrants. While they do not generate a majority of revenue, these large multinational operators have carved a place for themselves within key export markets in the United States and elsewhere, although export markets too are becoming saturated and highly competitive. In addition, incumbents tend to be global operators with strong product portfolios and high brand loyalty, with considerable resources to invest in advertising and media outlets. The...purchase to read more.

    Additional Insights for the Candy Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Candy Production Industry are

  • Ability to pass on cost increases to consumers
  • Ability to adapt to change
  • Economies of scale and scope
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Per capita disposable income in the Candy Production industry impact industry performance..

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    What's in this report

    What is the Candy Production Industry?

    This industry produces nonchocolate confectionery such as marshmallows, toffee, candied fruits and nuts, fudge, breakfast bars and chewing gum. Industry operators sell candy to retailers and wholesalers who then distribute it to households and other consumers. This industry does not produce chocolates, chocolate confectionery, ice cream, frozen yogourt or dried fruit and nut snacks.

    Industry Products
  • Hard candy
  • Soft candy
  • Chewing gum, with and without sugar
  • Candied nuts and fruits
  • Industry Activities
  • Soft candy production (e.g. marshmallows and jelly candy)
  • Hard candy production (e.g. lollipops)
  • Chewing gum production
  • Other nonchocolate candy production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Per capita disposable income
  • Total health expenditure
  • World price of sugar

  • Current Performance
  • Health-conscious consumers
  • Product innovation
  • Exports to the United States
  • External competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Weak demand
  • Exports slow down
  • Declining industry participation
  • Table: Candy Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Candy Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Baking Mix & Prepared Food Manufacturing in Canada
  • Coated & Laminated Paper Manufacturing in Canada
  • Fruit & Nut Farming in Canada
  • Margarine & Cooking Oil Processing in Canada
  • Syrup & Flavouring Production in Canada

  • Products & Services
  • Soft candy
  • Hard candy
  • Chewing gum, with and without sugar
  • Candied nuts and fruits
  • Chart: Candy Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Domestic consumers
  • Exports to other countries
  • Chart: Major Market Segmentation for the Candy Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Candy Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Candy Production Industry

  • Industry Globalization
    Mars Inc., Mondelez Canada Inc.,
  • Table: Mars Inc. - financial performance
  • Table: Mondelez Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Candy Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Candy Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of sugar (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Generic Brand
  • Goods that are produced under a retailer's brand name are often positioned as lower cost alternatives to branded products.
  • Hard Candy
  • Candy with a hard and brittle texture; often made of candy cane, boiled sugar candy and candy pops and does not typically possess the sophisticated ingredients of soft candies.
  • Premium
  • When producers charge consumers a price for their product that is more than its nominal value.
  • Soft Candy
  • Candy with a soft and chewy texture, such as marshmallow and jelly.
  • Vat
  • A large vessel (as a cistern, tub, or barrel) used in candy production.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Candy Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Candy Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Candy Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Candy Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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