Chocolate Bar Industry Trends Are Volatile While Aluminum Foil Industry Remains Steady

Chocolate bars were the first product to be wrapped in aluminum foil in 1910 by the Nestle Company and the trend caught on like wild fire. Fast forward more than 100 years, the candy industry in the United States has had its ups and downs. Chocolate and candy consumption has followed the movements in the economic cycle; decreasing when money is tight during a recession and increase when consumers have more disposable income during periods of expansion. At the current state of the US economy, chocolate consumption is growing because people are more willing and able to spend their money on indulgences but in order for candy companies to stay afloat, they will need to adjust to consumers changing tastes and buying habits.chocolate market power

There are a few barriers in the chocolate bar industry. First, leading producers in this industry collectively account for an estimated 67.7 percent of industry revenue. This stronghold on market power makes it difficult for small companies to enter the market. Mergers and acquisitions are becoming more common, adding to the muscle of the few. Second, Americans are showing growing health concerns shifting demand for white and milk chocolate to healthier alternatives such as reduced-fat, dark, and organic chocolate. Lastly, the price of sugar is expended to increase later in the year, posing a threat to the industry. Large firms will be able to pass the cost increase on to consumers but many small chocolate shops will not have the ability to do so.

While health trends have hampered demand for industry products, producers responded quickly by introducing new products that appeal to health-conscious Americans.
While health trends have hampered demand for industry products, producers responded quickly by introducing new products that appeal to health-conscious Americans.

Luckily the aluminum foil industry has been less volatile than the chocolate bar industry. As producers become more creative with their packaging techniques, aluminum foil for flexible packaging has expanded into goods with steady demand indicators. Consumers are now looking for their food and beverage products to be transportable, convenient, and lightweight to accommodate their on the go lifestyles. Shanghai Metal Corporation offers a wide array of aluminum foil for flexible packaging options, for the full line of products visit our website here.

Be sure to join the discussion in SMC’s Linkedin group page, Facebook, and Aluminum specific twitter.

Kristie K.//SMC Editor

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Shanghai Metal Corp. manufactures a wide-array of value-added Metal Products, Building Systems, Shipping Containers, and Machinery. Everyday SMC dedicates its effort to providing quality products and reliable service, embodying our company's commitment to Building Value Across the Globe.

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