Brief Understanding of Candy Manufacturing Businesses Across The World
Candy Manufacturing is one such gratifying business all across the globe that neither has it seen any lows nor has it faced major hurdles in terms of sales. And who doesn’t love candy? Candy is one such commodity that everyone craves for starting from a 2-year-old baby who is old enough to chew on some to an elderly person who has lost all the teeth. This global demand for candy has kept the Candy Manufacturing Industry bustling.
However, the Global Candy Manufacturing Industry has seen a slow growth from the year 2013 to 2018, as the revenue was registered to only 0.8% per annum. This Dip in the revenue was found to be mainly due to awareness among the consumers in most of the urban markets about sugar and ill effects of consuming it. This has limited their candy intake. There are also other reasons as to why candy sales have gone down globally in the recent past and we shall give you a detailed analysis of the country-specific Candy markets and the reasons why they are different from their competitors.
Top Candy Manufacturing Countries:
Candy manufacturing businesses are scattered all across the globe but there are few countries where the concentration of the Sugar Confectionery Market is more. Majority of the companies are located in and around the USA, China and India. Let’s talk about these countries and know why they are leading in the International market when it comes to Candy production and sales.
Majority of the candy manufacturing countries in the USA are concentrated in Brazil. Though they are located in the Brazilian part of the land their produce is widely distributed to all the parts of the United States. The US Confectionery Sector is led by the chocolate category both in terms of value and volume, sugar confectionery is yet to register the sales forecast in terms of volume, growth and value. Hypermarkets & supermarkets are the available channels for the confectionery products distribution in the country. Various factors like high growth categories, the market share of brands, category level distribution and trends in the usage of package materials are the key areas where the candy manufacturers concentrate on to achieve their business goals.
Scope of the current market:
- The per capita consumption of confectionery in the USA is going to be higher compared to both the global and regional levels in the years to come.
- The US market for packaged snacks is growing twice as quickly as the market for packaged foods in general.
- For the confectionaries whose major quantity is sugar; the Private label penetration is the highest.
- Older consumers contribute to the leading share in the consumption of Confectionery Exports & Supplies in the USA.
Reasons for Growth:
- The US confectionery Industry has been able to Identify new potential categories and explore future market opportunities based on the volume analysis
- Existing and new players utilize the key distribution channels to identify and evaluate trends and opportunities.
- With a better understanding of the total competitive landscape, a proper plan and effective market positioning strategies made the United States a leading candy manufacturing country in the globe.
The Chinese Confectionery Sector, with its large population and rising middle class, is an important market for companies who are in search of new markets for their finished products. It is basically leading in the sugar confectionery category, while chocolate is yet to register the forecasted growth. Convenience stores are the most popular channels for distribution of confectionery products in the country. Flexible packaging is the most commonly used packaging material.
Scope for Growth
- Since the arrival of foreign Industries, the hand-crafted chocolate makers have paved the way for a new form of consumption in the country.
- The necessity of Innovation is demanding new ways of packaging, variance in flavors and new consumption models.
- The minimal pricing for new chocolate brands is likely to take over the local companies in the country.
Reasons for Growth
- Rising average annual income and increased exposure to International and Western confectionery goods are the main reasons for the rise in sales.
- Increase in foreign candy corporations and the average pricing have made China one of the most profitable high-end markets.
- A wider population and increased consumption among the low earners are one of the reasons that have gained China an effective market position.
Indian Confectionery Sector:
The Indian Confectionery Sector is led by the chocolate market in value terms. It is also expected to register the forecasted growth in confectionery category value during 2018-2023. Convenience stores are the leading channel for distribution of confectionery products in the country. Flexible packaging is the most commonly used packaging material followed by paper and board.
- Increase in demand from the younger age group of the country for new formats and flavors are the leading factors for new product launches and modern Candy Manufacturing Industries.
- Strong upcoming trends by the local and foreign candy manufacturers are expected to drive and propel the growth potential of the confectionery market size and the various categories within it.
- Dairy Milk is the leading brand in both value and volume terms in the Indian confectionery sector
Reasons for Growth
- The Indian confectionery market has been up to date with the changing trends and consumer tastes and paying heed to consumer spending.
- The growing requirements that were driven by the newfound mall culture and changing lifestyle were met upfront.
- The big players have used a mix of franchise arrangements with small units and product formulations have made prominent offerings to the Indian Confectionery Market.
Apart from the above-mentioned Candy manufacturing Countries, there are also world-class candy manufacturers that are located in other parts of the world and have been distributing their products all across the globe. Few of them are
- Ferrero – Italy
- Meiji – Japan
- Lindt & Sprungli – Switzerland
- Haribo – Germany
- Orion – South Korea
- Storck – Germany
- Roshen – Ukraine
Although chocolate and candy remain the favorite snack in both developed and emerging markets, the fluctuating sugar prices have an impact on the candy manufacturers and exporters to lower their selling prices which have limited the revenue from the Confectionery Industry. Despite the low revenue turnover from 2013-2018, the experts and market analysts expect the Candy manufacturing industry to grow globally above $144.9 billion from 2019.
The increasing population of the country, aggressive product marketing, robust supply chain network with increasing penetration in rural areas is a few of the major factors fueling the demand of candies in India.