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Candy Production

Candy Production

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Executive summary

Health concerns and heightened competition have challenged revenue growth for the Candy Production industry over the five years to 2022. Consumers have become wary of sugar-rich, high-calorie products. Furthermore, those who still consume sweets are increasingly shifting toward chocolate. This shift highlights the substitutability of this
industry's high-sugar candy with chocolate candy, produced externally by the Chocolate Production industry (M-Ysland LLC report 31135). Despite these challenges, operators have increased product innovations to appeal to health-conscious customers, which has helped generate revenue. As a result, industry revenue has increased an annualized 0.9% to $12.1 billion over the five years to 2022, including 0.9% in 2022.
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Each report includes:

industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

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Reference Wordlist

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. M-Ysland LLC uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $1 of labor.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in M-Ysland LLC`s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

Colloquial Terminology

A molecule with one water-loving (hydrophilic) and one oil-loving (hydrophobic) end that enables water and oil to finely disperse in each other.

Candy such as candy cane, boiled sugar candy and candy pops, which do not typically possess the sophisticated ingredients and flavors of modern soft candies.

A process of building candy pieces from single units, such as grains of sugar, nuts or candy centers, and tossing them in revolving pans while adding flavor, color and other ingredients.


Volatile commodity prices have continuously challenged the industry over the past five years. Poor climatic conditions have limited international production of sugar, leading to worldwide shortages. After increasing by double-digits in 2016, sugar prices have fluctuated in recent years and remained high. Significant volatility in the price of sugar has affected selling prices and has also squeezed profit for some operators. In 2021, sugar prices once again spiked, rising nearly 25.0% over the course of the year. A high level of internal and external competition characterizes the industry, particularly imports, which fulfill an estimated 23.2% of domestic demand in 2022. To expand markets and product offerings, larger industry operators have been more active in merger and acquisitions. Meanwhile, smaller operators have entered the industry to provide niche products, placing pressure on profit. This trend is expected to continue over the five years to 2027.

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