A bitter taste: Volatile commodity prices caused revenue to decline, but margins have expanded

Operators in the Chocolate and Confectionery Production industry have faced challenging conditions over the past five years, as input prices have been highly volatile and industry revenue has followed a similar trajectory. Key industry inputs include cocoa, sugar, milk and flavourings such as vanilla. When global food commodity prices fall, operators face downward pricing pressure from downstream industries that are aiming to boost their margins. Due to the homogeneous nature of chocolate and confectionery, manufacturers cannot offer prices that are significantly greater than the market level or they risk losing market share. Despite extreme volatility, the world prices of cocoa, sugar and milk have largely trended downwards over the five years...read more.

Industry Statistics & Market Size
Revenue
€238.6m
Annual Growth 14-19
-5.0%
Forecast Growth 19-24
Profit
Employment
1,725
Businesses
60
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue has fallen due to declining commodity prices, but demand for industry products remains strong
  • Declining demand from the United Kingdom negatively affected exports in the middle of the period
  • Functional chocolate and confectionery offer a potential area of expansion for the industry
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a moderate level of capital intensity. In 2019, wages are estimated to account for 30.2% of industry revenue, while depreciation is expected to account for 4.2% of industry. Using depreciation as a proxy for capital and wages as a proxy for labour, the industry has a capital intensity ratio of 1:7.18. This suggests for every €1.00 spent on capital, €7.18 is spent on labour.The level of capital intensity differs significantly depending on the size of an operator. Larger firms have increased capital investment over the past five years in order to boost efficiency and cut costs. Meanwhile, artesian confectioners and chocolatiers are typically more labour intensive and rely on human capital to produce goods by hand...purchase to read more.

    Additional Insights for the Chocolate & Confectionery Production Industry

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

  • Supply contracts in place for key inputs
  • Ability to alter goods and services produced in favour of market conditions
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Perceived health and World price of cocoa in the Chocolate & Confectionery Production industry impact industry performance..

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    What's in this report

    What is the Chocolate & Confectionery Production in Ireland Industry?

    This industry is broken down into three subclasses: cocoa product production, sugar confectionery manufacturing, and chewing gum production. Cocoa products include chocolate, cocoa butter, cocoa fat and cocoa oil. The sugar confectionery segment covers the production of caramel, nougat, lozenges, toffee and fondant.

    Industry Products
  • Chocolate bars, blocks and boxes
  • Sugar confectionery
  • Bulk chocolate products
  • White chocolate
  • Gum
  • Industry Activities
  • Manufacturing chocolate
  • Manufacturing sugar confectionery
  • Manufacturing chewing gum and bubblegum
  • Manufacturing cocoa products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Perceived health
  • World price of cocoa
  • World price of sugar
  • Modified real disposable income per capita

  • Current Performance
    Industry inputsImport competitionSweet successDemand growthChanging consumer trendsMarket structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
    Growth driversTrade trendsIndustry concerns
  • Table: Chocolate & Confectionery Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Biscuit Production in Ireland
  • Supermarkets in Ireland
  • Bread & Bakery Goods Production in Ireland
  • Food, Beverage & Tobacco Wholesaling in Ireland

  • Key Selling Industries
  • Dairy Product Production in Ireland
  • Plastic Packing Goods Manufacturing in Ireland
  • Sugar Production in Ireland

  • Products & Services
  • Chocolate bars, blocks and boxes
  • Sugar confectionery
  • Bulk chocolate products
  • White chocolate
  • Gum
  • Other
  • Chart: Chocolate & Confectionery Production Industry Products and Services Segmentation

  • Demand Determinants
  • Pricing and household disposable income
  • Health consciousness and changing consumer tastes
  • Seasonal demand and substitutes

  • Major Markets
  • General retailers
  • Food service industries and processors
  • Confectionery and other food wholesalers
  • Specialised confectionery retailers
  • Chart: Major Market Segmentation for the Chocolate & Confectionery Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Marketing
  • Rent
  • Utilities
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Chocolate & Confectionery Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chocolate & Confectionery Production Industry

  • Industry Globalization
    Mondelez Ireland Production Ltd, Butlers Chocolates Unlimited Company, Ferrero Ireland Ltd, Lily O'Brien’s Holding Ltd,
  • Table: Mondelez Ireland Production Ltd - financial performance
  • Table: Butlers Chocolates Unlimited Company - financial performance
  • Table: Ferrero Ireland Ltd - financial performance
  • Table: Lily O'Brien’s Holding Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chocolate & Confectionery 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 & Confectionery Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Antioxidant
  • Enzymes and other substances that are capable of counteracting the damaging effects of oxidation.
  • Cocoa Fat
  • A yellowish-white fatty solid obtained from cacao seeds and used as an ingredient in cosmetic products, tanning oils, chocolate and soap.
  • Functional Chocolate And Confectionery
  • Products with physiological benefits such as those containing collagen and selenium for anti-ageing purposes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chocolate & Confectionery Production in Ireland market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 & Confectionery Production in Ireland:
    • 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 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 & Confectionery Production in Ireland 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 & Confectionery Production in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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