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Chocolate Production in the US Industry Market Research Report from IBISWorld has Been Updated
Date:1/28/2013

Los Angeles, CA (PRWEB) January 28, 2013

After facing some bitter challenges, America's sweet tooth managed to keep the Chocolate Production industry relatively solid. In recent years, increasingly health-conscious buyers have been consuming less sugar due to the link between excessive sugar intake and health issues, negatively affecting demand for high-sugar chocolate products. In addition, consumers had low disposable income during the recession, deterring them from purchasing expensive specialty chocolate, which contributed to the 7.6% revenue decline in 2008. “However, the industry bounced back quickly because people used chocolate, particularly cheaper chocolate goods, as a comfort food during these difficult times, offsetting the revenue decline,” says IBISWorld industry analyst Olivia Tang. Additionally, product developments combined with marketing and promotional messages revamped consumer demand, and renewed interest in the chocolate market. As a result of these conflicting factors, revenue expanded at a slow annualized rate of 0.3% to $15.5 billion during the five years to 2012. In 2012 alone, higher disposable income during economic recovery will allow Americans to afford high quality, expensive chocolates, boosting revenue 2.5%.

Profit expanded consistently over the past five years despite high and volatile commodity costs because firms were able to pass these costs to buyers in the form of higher product prices. For example, the price of sugar grew 11.6% per year on average in the past five years, but firms raised chocolate prices even more, padding profit margins. Even with these price hikes, brand-loyal consumers continued to buy the same chocolate brands, preventing demise for industry profitability. Firms also streamlined production processes by adoptin
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