Industry Analysis & Industry Trends
The Chocolate and Confectionery Production industry's revenue has declined over the past five years due to weak economic conditions and fluctuations in the price of key inputs in a saturated market. The shift of production capacity to Continental Europe has also contributed to the contraction in revenue, which is estimated to fall at a compound annual rate of 5% over the five years through 2016-17. Domestic production of chocolate and confectionery is currently under threat as food giants like Mondelez move production from Britain in order to reduce costs. High input costs as a result of the 25.6% increase in the world price of cocoa in 2014 coupled with the effects of a depreciating pound are expected to squeeze operators' profit margins over the two years through 2016-17... purchase to read more
Industry Report - Starting a New Business Chapter
New entrants to the Chocolate and Confectionery Production industry face moderate barriers to entry. Barriers tend to vary with different product segments. In the chocolate segment, barriers tend to be higher as the market is dominated by major companies and operators face increasing competition from imports. However, smaller artisan chocolate producers have thrived thanks to demand for high quality premium products. The confectionery segment has a lower level of concentration so barriers are significantly lower.
The biggest obstacles for new entrants are the size and dominance of existing major players. New.. purchase to read more