Sweetening the deal: Demand for premium and ethically sourced products has supported recent revenue growth

The Confectionery Wholesaling industry includes merchant wholesalers that distribute confectionery to a range of retailers including supermarkets, convenience stores and the hospitality sector. It also includes the wholesale and distribution divisions of major confectionery producers such as Mondelez, Mars and Nestle. Key industry products include chocolate, sugar confectionery, sweet baked goods and chewing gum.Industry demand declined over the three years through 2015-16, due to rising health concerns and negative coverage of the health effects of confectionery. However, demand rebounded significantly in 2016-17 and revenue growth is expected to have been sustained since...read more.

Industry Statistics & Market Size
Revenue
£9.4bn
Annual Growth 14-19
3.3%
Forecast Growth 19-24
Profit
Employment
5,208
Businesses
519

Industry Threats & Opportunities

  • Strong demand for premium and ethically sourced goods has supported revenue growth
  • A focus on the ethical sourcing of cocoa resulted in a surge in demand for more fair trade products
  • Sales of premium products are expected to be supported by consumers’ growing ethical concern
  • Industry Report - Industry Key Buyers Chapter

    The Confectionery Wholesaling industry has a low level of market share concentration, with the four largest companies accounting for an estimated 36.5% of industry revenue in 2018-19. The level of concentration among vertically integrated operators, which both manufacture and distribute products, is greater than among those that simply purchase confectionery from manufacturers to redistribute to retailers.Over the past decade, a series of mergers and acquisitions have occurred, increasing the level of market share concentration in the industry. For example, Mondelez International, when it was still known as Kraft Foods, acquired Cadbury in 2010, which significantly increased their market share. In ...purchase to read more.

    Additional Insights for the Confectionery Wholesaling Industry

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

  • Marketing of differentiated products
  • Economies of scope
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Public concern over environmental issues in the Confectionery Wholesaling industry impact industry performance..

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    What's in this report

    What is the Confectionery Wholesaling Industry?

    Operators in this industry wholesale chocolate and sugar confectionery such as chewing gum, caramels, nougats and lozenges. They also wholesale sweet bakery products. The industry excludes the wholesale of bread. Industry operators sell products to markets such as supermarkets, speciality retail outlets and convenience stores.

    Industry Products
  • Chocolate
  • Sugar confectionery
  • Chewing gum and bubblegum
  • Bakers' confectionery
  • Industry Activities
  • Wholesaling chocolate
  • Wholesaling chocolate confectionery
  • Wholesaling chewing gum and bubblegum
  • Wholesaling sugar confectionery
  • Wholesaling bakery products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Public concern over environmental issues
  • Demand from supermarkets
  • World price of cocoa
  • World price of sugar
  • Real household disposable income

  • Current Performance
  • Health trends
  • Premium products and ethical concerns
  • Growth constraints
  • Profit performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Health concerns
  • Premium growth
  • Small operators struggle
  • Market structure

    and profit

  • Table: Confectionery Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Confectionery Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Department Stores
  • Petrol Stations
  • Full-Service Restaurants
  • Takeaway & Fast-Food Restaurants
  • Pubs & Bars

  • Key Selling Industries
  • Bread & Bakery Goods Production
  • Chocolate & Confectionery Production

  • Products & Services
  • Chocolate
  • Sugar confectionery
  • Bakers' confectionery
  • Chewing gum and bubblegum
  • Other
  • Chart: Confectionery Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and convenience stores
  • Food-service operators
  • Specialised food stores
  • Other
  • Households
  • Chart: Major Market Segmentation for the Confectionery Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Confectionery Wholesaling

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

  • Industry Globalization
    Mondelez UK Limited, Mars Wrigley Confectionery UK Ltd, Nestle UK Ltd, Ferrero UK Ltd,
  • Table: Mondelez UK Limited - financial performance
  • Table: Mars Wrigley Confectionery UK Ltd - financial performance
  • Table: Nestle UK Ltd - financial performance
  • Table: Ferrero UK Ltd - financial performance

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

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fair Trade
  • Aims to ensure sustainable pay and appropriate working conditions in developing countries by ensuring they are paid minimum prices that cover their production costs.
  • Flavonoids
  • Naturally occurring plant compounds, which act primarily as plant pigments and antioxidants.
  • Vertically Integrated
  • When a firm owns its upstream suppliers and its downstream buyers. Manufacturers or retailers commonly wholesale their own goods.
  • Wholesale Bypass
  • When customers purchase their products from manufacturers and cut out wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Confectionery Wholesaling 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 Confectionery Wholesaling:
    • 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 Confectionery Wholesaling 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 Confectionery Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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