Sugar rush: Demand for premium chocolates and strong export growth have helped sustain revenue growth

Over the five years to 2018, industry demand has been negatively affected by sluggish disposable income growth, increased health consciousness and volatile input prices. However, the industry has benefited from greater demand for premium chocolates and strong export growth. IBISWorld estimates industry revenue will increase over the five years to 2018. Moving forward, persistently sluggish growth in disposable incomes will combine with weaker export growth to limit industry revenue more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Profit has been perturbed by volatile raw material prices, especially the price of cocoa
  • Premium boxed chocolates are the most popular industry export to the United States
  • A slight uptick in the value of the Canadian dollar is expected to limit export growth
  • Industry Report - Industry Key Buyers Chapter

    The Chocolate Production industry in Canada exhibits a low degree of concentration, with the top four players accounting for an estimated 32.1% of revenue in 2018. Concentration has declined over the past five years. Acquisition activity among the largest players has increased; for example, Mondelez (formerly part of Kraft Foods Group) did not become a major player until it acquired Cadbury just before the start of the current period, which significantly increased its industry-specific revenue. Similarly, the Hershey Company acquired Brookside Foods in January 2012. However, small players account for most of revenue and are numerous and increasing, servicing local and regional markets. Ove...purchase to read more.

    Additional Insights for the Chocolate Production Industry

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

  • Ability to adapt to change
  • Effective product promotion
  • Supply contracts for key inputs
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and World price of cocoa in the Chocolate Production industry impact industry performance..

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    What's in this report

    What is the Chocolate Production Industry?

    This industry produces cocoa-based confectionery such as chocolate bars, boxed chocolates and filled and unfilled chocolate blocks. The production of chocolate-covered confectionery, such as chocolate-covered nuts, is also included within industry operations.

    Industry Products
  • Chocolate bars
  • Boxed chocolates
  • Block chocolates
  • Other chocolate-based confectionery
  • Industry Activities
  • Producing chocolate bars
  • Producing boxed chocolates
  • Producing chocolate blocks
  • Producing other cocoa-based confectionery
  • Table of Contents

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

  • Current Performance
  • Domestic markets
  • Export markets
  • Volatile profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Stabilizing demand
  • Input prices
  • Saturated industry
  • Table: Chocolate Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Specialty Food Stores in Canada

  • Key Selling Industries
  • Fruit & Nut Farming in Canada
  • Syrup & Flavouring Production in Canada

  • Products & Services
  • Chocolate bars
  • Block chocolates
  • Boxed chocolates
  • Other chocolate-based confectionery
  • Chart: Chocolate Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Confectionery wholesalers
  • Supermarkets and grocery stores
  • Specialty retailers
  • Chart: Major Market Segmentation for the Chocolate Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Chocolate Production

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

  • Industry Globalization
    Ferrero Canada Ltd., Nestle Canada Inc., Mars Inc., The Hershey Company,
  • Table: Ferrero Canada Ltd. - financial performance
  • Table: Nestle Canada Inc. - financial performance
  • Table: Mars Inc. - financial performance
  • Table: The Hershey Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chocolate 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 Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World Price of Cocoa (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Artisan Chocolate
  • Chocolate that is not made by machines, but rather, involves a high degree of human labour and craftsmanship.
  • Chocolatier
  • A person or company that makes or sells chocolate.
  • Cocoa
  • A powder made from cacao seeds used in chocolate.
  • Dark Chocolate
  • Also known as “semisweet” or “bittersweet” chocolate. A form of chocolate produced by using mostly cocoa solids and very little added milk and sugar, or no milk and added sugar at all.
  • Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Praline
  • A family of confections, usually made from nuts, sugar and syrup that are often made from chocolate.
  • Premium
  • When producers charge consumers a price for their product that is more than its nominal value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chocolate Production market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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

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