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

g 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.

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