Troubles melting away: Revenue is expected to have recovered with some reshoring activity

The Chocolate and Confectionery Production industry's revenue has declined over the past five years due to weak economic conditions and fluctuations in the prices of key inputs in a saturated market. The shift of production capacity to Continental Europe has also contributed to the contraction in revenue, which is expected to fall at a compound annual rate of 2.2% over the five years through 2018-19. Domestic production of chocolate and confectionery is currently under threat as food giants like Nestle have moved production from Britain in order to reduce costs. The depreciation of the pound is expected to squeeze operators' profit margins over the second half of the period...read more.

Industry Statistics & Market Size
Revenue
£3.7bn
Annual Growth 14-19
-2.2%
Forecast Growth 19-24
Profit
Employment
18,924
Businesses
392

Industry Threats & Opportunities

  • Operators are expected to boost demand through innovation and premium products
  • Producers have had to contend with a high degree of volatility in the cost of key inputs
  • Further offshoring is unlikely to happen in the current weak pound environment
  • Industry Report - Industry Investment Chapter

    Using depreciation as a proxy for capital spending and wage costs as a proxy for labour inputs, IBISWorld estimates that the Chocolate and Confectionery Production industry has a moderate level of capital intensity. For every £1.00 spent on capital, industry operators are expected to spend £4.52 on labour. Large manufacturing plants boost their productivity by investing in technology and equipment, but intensity varies between companies of different sizes. High-end artisan chocolate producers tend to do more work by hand, making their business model more labour intensive.However, overall capital intensity has increased over the past five years as large operators sought to cut costs in an increasingly competitive market. The most recent example is Mondelez. The...purchase to read more.

    Additional Insights for the Chocolate & Confectionery Production Industry

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

  • Marketing of differentiated products
  • Economies of scope
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as World price of cocoa and Consumer confidence index in the Chocolate & Confectionery Production industry impact industry performance..

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    What's in this report

    What is the Chocolate & Confectionery Production Industry?

    This industry is broken down into three subclasses: cocoa product production, sugar confectionery manufacturing and chewing gum production. Cocoa products include chocolate, cocoa butter, cocoa fat and cocoa oil. The sugar confectionery segment covers the production of caramel, nougat, lozenges, toffee and fondant.

    Industry Products
  • Chocolates and chocolate bars and blocks
  • Sugar confectionery
  • Bulk chocolate and food and drink preparations
  • Filled chocolate
  • Gum
  • White chocolate
  • Industry Activities
  • Chocolate
  • Cocoa product
  • Chewing gum and bubblegum
  • Sugar confectionery
  • Preserving fruit, nuts and fruit peel in sugar
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of cocoa
  • Consumer confidence index
  • Real household disposable income
  • Demand from supermarkets

  • Current Performance
  • Melting away
  • Fair trade and organic chocolate
  • Volatile inputs
  • Chart: Revenue Growth

  • Industry Outlook
  • Production capacity
  • Consumer trends
  • Cocoa costs
  • Table: Chocolate & Confectionery Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chocolate & Confectionery Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread & Bakery Goods Production
  • Biscuit Production
  • Confectionery Wholesaling
  • Supermarkets
  • Bakery Product Retailing
  • Hotels
  • Food-Service Contractors

  • Key Selling Industries
  • Butter & Cheese Production
  • Milk & Cream Production
  • Sugar Production

  • Products & Services
  • Chocolates and chocolate bars and blocks
  • Sugar confectionery
  • Bulk chocolate and food and drink preparations
  • Filled chocolate
  • Other
  • Gum
  • White chocolate
  • Chart: Chocolate & Confectionery Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • General retailers
  • Food manufacturers
  • Specialised confectionery retailers
  • Food-service industries
  • Wholesalers
  • Chart: Major Market Segmentation for the Chocolate & Confectionery Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Chocolate & Confectionery Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chocolate & Confectionery Production Industry

  • Industry Globalization
    Mars Wrigley Confectionery UK Ltd, Nestle UK Ltd, Mondelez Europe GmbH, Barry Callebaut Manufacturing (UK) Ltd,
  • Table: Mars Wrigley Confectionery UK Ltd - financial performance
  • Table: Nestle UK Ltd - financial performance
  • Table: Mondelez Europe GmbH - financial performance
  • Table: Barry Callebaut Manufacturing (UK) Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chocolate & Confectionery 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 Chocolate & Confectionery Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Antioxidant
  • Enzymes and other substances that are capable of counteracting the damaging effects of oxidation.
  • Cocoa Fat
  • A yellowish-white fatty solid obtained from cacao seeds and used as an ingredient in cosmetics, tanning oils, chocolate and soap.
  • Tempering
  • The process of heating and then cooling off slowly.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chocolate & Confectionery Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Chocolate & Confectionery 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 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 Chocolate & Confectionery 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 Chocolate & Confectionery Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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