Industry Analysis : Nature 's Kandy

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Industry Analysis – Nature’s Kandy

Summary

The industry analysis below includes reports and data from IBIS World. Nature’s Kandy currently operates in Candy Production in United States, with a NAICS code of 31134. According to IBIS World, this industry includes,

"Producers of confectionery such as breakfast bars, candied fruits, fudge, Halvah, marshmallows and toffee. Finished goods are distributed to confectionery and grocery wholesalers and retailers, who then sell the candy to households and other consumers. The industry does not produce chocolates, chocolate confectionery, ice cream or frozen yogurt.”

The competitors in this field are Mars Inc., Ferrara Candy Company, The Hershey Company, and Mondelez International. The top four
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In the past 5 years the annualized rate of fall in the revenue in the industry is 1%.

Revenue Analysis

According to IBIS, due to politics and poor climatic conditions limited international production of sugar, leading to worldwide shortages; therefore, sugar prices increased, climbing to double digits in 2011. This has ever changing in selling prices and also the thin profit margins of operators that purchased sugar when prices were high then sold inventory when prices were low. Still, the profit margins of the largest four operators have buoyed the average profit in this industry. IBISWorld expects profit to reach 14.9% over 2016, with giants like Hershey 's commanding significantly more.

IBISWorld expects concluded that:
""Producers of confectionery such as breakfast bars, candied fruits, fudge, Halvah, marshmallows and toffee. Finished goods are distributed to confectionery and grocery wholesalers and retailers, who then sell the candy to households and other consumers. The industry does not produce chocolates, chocolate confectionery, ice cream or frozen yogurt.”

Key External Drivers

The five external drivers for this industry are demand from chocolate, per capita disposable income, Per capita sugar and sweetener consumption, price of sugar, and trade-weight index. These five factors have a direct impact on competitors in the industry, this level of competition makes barriers to entering the market medium and
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