Navigation Links
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 adopting new technologies, enabling them to employ fewer people and cut wage costs. Consequently, profit margins expanded from 9.3% of revenue in 2007 to 16.4% in 2012. In the next five years, the industry is projected to grow steadily because higher disposable incomes will enable consumers to afford and indulge in discretionary products like chocolate. Additionally, Americans will continue to be health-conscious, demanding sugar-free, dark and organic chocolates, which will be major growth segments. Consequently, revenue is projected to increase through 2017.

The Chocolate Production industry has a moderate, but close to high, level of concentration where the top four players account for about 67.8% of industry revenue in 2012, up from 49.0% in 2007. Concentration increased so dramatically over the past five years mainly because of acquisition activity. Only 2.5% of firms employ more than 500 workers, including all major players, and 6.5% of the industries employ 100 or more workers, yet they command the majority of industry revenue. According to Tang, major companies have such a strong position in the industry because their well-known brands attract loyalty from customers. On the other hand, smaller enterprises employing fewer than 20 people make up 79.1% of the industry, but there are no sole proprietors. Smaller firms are so numerous because they typically make up local niche stores. However, they service small regions in the immediate surrounding area with smaller product lines and, therefore, generate a small fraction of revenue. For more information, visit IBISWorld’s Chocolate Production in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Chocolate Production industry manufactures chocolate from cacao beans, sells raw chocolate, and makes chocolate products and confectioneries. Other ingredients, such as flavorings, syrups, nuts, fruits and preservatives, are purchased from various other industries and combined with raw chocolate to produce many of this industry's products.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

# # #

Read the full story at http://www.prweb.com/releases/2013/1/prweb10363080.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. A Delicious, And Healthy New Seasonal Hot Chocolate Beverage, Xocai's Sipping Xocolate, Has Been Released By Marketing Xocolate International Corporation (MXI Corp)
2. The Leader In Healthy Chocolate; Marketing Xocolate International Corporation (MXI Corp) Expands Their Operations To Hong Kong, Xocai Now Available On Five Continents
3. Marketing Xocolate International Corporation (MXI Corp) Launches “The Whole Story” World Tour To Highlight Xocai Healthy Chocolate Product, Full-Line Up of Guest Speakers
4. Marketing Xocolate International Corporation (MXI Corp) Unveils New Healthy Dark Chocolate Product: Xoçai™ Nuggets, Which Are Both Diabetic And Vegan Friendly
5. MXI Corp; Xocai Healthy Chocolate Introduces, XoBiotic Squares, A Dark Chocolate With Probiotics, Designed To Maintain A Healthy Intestinal Balance
6. Naturecast Pets Conducts New Study on How Chocolate is a Fatal Risk to Dogs
7. Global Candy and Chocolate Manufacturing Industry Market Research Report from IBISWorld has Been Updated
8. Marketing Xocolate International Corp (MXI Corp) Makers of Xocai Healthy Dark Chocolate, Featured in Direct Selling News Spotlighting the Company's Continued Growth
9. Marketing Xocolate International Corporation; Maker Of Delicious Dark Xocai Healthy Chocolate Set To Host Gold Executive Fly-In Event For Its Distributors
10. iPad Contest Ends with a WIN for Bridget Mulcahy, CRNA Financial and Graeter’s Raspberry Chocolate Chip
11. Healthy Chocolate Omega Squares, a Decedent Dark Chocolate Added to Marketing Xocolate International Corporation (MXI Corp) Product Lines
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... ... June 19, 2016 is World Sickle Cell Observance Day. In an effort to ... treatments, Serenity Recovery Center of Marne, Michigan, has issued a pain management ... (SCD) is a disorder of the red blood cells, which can cause episodes of ...
(Date:6/24/2016)... ... June 24, 2016 , ... Global law firm Greenberg Traurig, ... Elite. The attorneys chosen by their peers for this recognition are considered among the ... Traurig Shareholders received special honors as members of this year’s Legal Elite Hall of ...
(Date:6/24/2016)... Rhinebeck, NY (PRWEB) , ... June 24, 2016 , ... Topical BioMedics, Inc, makers of ... of companies that call for a minimum wage raise to $12 an hour by 2020 ... wage. This will restore the lost value of the minimum wage, assure the wage floor ...
(Date:6/24/2016)... New York, NY (PRWEB) , ... June 24, ... ... lifestyle publication Haute Living, is proud to recognize Dr. Barry M. Weintraub as ... believes that “the most beautiful women in the world, and the most handsome ...
(Date:6/24/2016)... ... June 24, 2016 , ... National recruitment firm Slone ... executive with extensive sequencing and genomics experience, as Vice President of North American Capital ... will be responsible for leading the sales team in the commercialization of the HTG ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , Belgium , June ... MKT: VNRX), today announced the appointment of Dr. ... of Directors as a Non-Executive Director, effective June ... Company,s Audit, Compensation and Nominations and Governance Committees.  ... Dr. Futcher will provide independent expertise and strategic ...
(Date:6/23/2016)... -- Any dentist who has made an implant supported denture ... of them do not even offer this as a viable ... costs involved. And those who ARE able to offer that ... cost that the majority of today,s patients would not be ... , founder of Dental Evolutions Inc. and inventor of Implanova ...
(Date:6/23/2016)... Research and Markets has announced the addition of the ... to 2022" report to their offering. ... financial data derived from varied research sources to present unique ... on the market during the next five years, including a ... markets, regional and country level analysis. The report provides a ...
Breaking Medicine Technology: