The Chocolate & Confectionery Production industry has found itself in a sticky situation during the past five years. The onset of the financial crisis and the United Kingdom's descent into recession have gradually eroded consumer confidence, sharply constraining spending on chocolate and confectionery products. At the same time, rising cocoa, sugar and milk prices have increased production costs, but weak demand has limited producers' ability to pass these costs on to consumers, resulting in falling profitability. According to IBISWorld industry analyst Patrick Ross, “the organic and fair trade movements have gathered momentum over the past decade and created niche segments across the food and beverage sector”. Rising health consciousness has drained demand away from industry products in general, but also created opportunities for producers to develop low-sugar products. Imports have been capturing an ever greater share of domestic demand and become a threat to UK operators. In the five years through 2013-14, industry revenue is expected to decline at a compound annual rate of 2.8%. In 2013-14, industry revenue is forecast to decrease by 2.1% to £4.8 billion, its lowest value in over a decade.
