The candy industry comprises of lollipops and sweets and chocolates, all of which are snacks consumed all across the world. The developed markets around the world remain the most prominent producers and consumers of candy and chocolate. Candy, especially chocolates, continue to thrive in many developed markets, especially in Europe and North America. Although children and youths make up the bigger percentage of the candy and chocolate market, there are reports that the number of adults who eat candies and chocolates is on the rise.
The global confectionery market was worth over $210 billion in 2019, with chocolates alone contributing a massive $140 billion. The overall candy market is expected to soar to about $270 billion at a CAGR of 3.6% by 2027. North America is by far the primary contributor and producer of candy. The United States alone accounts for about $10.4 billion annually. China and India are also top industry influencers with a CAGR of 5.2%, which is expected to skyrocket within a ten-year mark.
The Nigeria chocolate and candy market was valued at $30.1 million in 2020 and is expected to grow at a CAGR of 4.7% within 2020 and 2025. Gums, jellies, and chews are the leading segments in the sugar confectionery category with a per capita consumption of 0.1076 Kg in 2018. The chocolate category is expected to witness a healthy CAGR of 20.82% during the forecast period. The candy industry holds a promising future for the Nigerian economy at large if explored maximally. However, problems stemming from poor strategies and development of the agro-production sector continue to bedevil the country’s confectionery market.
The production rate of Cocoa bean plant used in the production of chocolate, for instance, has continued to experience a tepid rise in value, thus discouraging the by-products that could be generated from the plant. A review of agricultural policies to include sustainability and utilization of essential value products like cocoa can quickly fix this issue and consequently improve the face of the candy and chocolate production industry.
If you’re considering starting a lucrative candy and chocolate production business in Nigeria or any other part of Africa and would like to discover how to amass a fortune industry, you will find the right guide in this article.
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What Is A Candy Or Chocolate?
Candies include a variety of confections made primarily with sugar, syrup and other flavoury ingredients. Chocolates, on the other hand, are special candies derived from processed cocoa seeds.
What Is A Candy And Chocolate Production Business?
Candy making is the preparation and packaging of candies and sugar confections for consumption. Candy making involves the preparation of several different candies produced to form a syrup by dissolving sugar in water or milk, which is boiled until it reaches the desired concentration or begins to caramelize.
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Business Opportunities Associated With Candy And Chocolate Production Business In Nigeria And Across The World
1). Marketing And Sale of Candy Products:
The global market for candies continues to rise just with most convenient foods. As a result, the business of buying and selling of candy products, whether wholesale or retail, is a steady profit builder any day anytime.
2). Candy Recipe Consultation:
The business of candy making is very vast, and so any expert knowledge on recipe formulation and the combination makes a great deal of business. A candy consultant can give one an edge to varying your flagship product idea into creating several other unique products.
3). Sale Of Candy Machinery And Pieces Of Equipment:
There is no candy making without a piece of candy-making machinery. The candy manufacturing plant industries will continue to remain relevant as candy making continues to soar.
Facts And Benefits Of Candy And Chocolate Production Business
- The cocoa butter found in chocolate contains a mono-unsaturated fat, oleic acid, which may raise good cholesterol.
- Chocolate contains the compound phenylethylamine, which is a mild mood elevator.
- The flavonoids contained in chocolate is said to help keep blood vessels elastic.
- Chocolates help to increase antioxidant levels in the blood.
- The carbohydrates contained in chocolates promotes serotonin levels in the brain, resulting in a sense of well-being.
- Cacao contains small quantities of stimulants such as caffeine and bromine, which decrease the occurrence of nervous excitability.
- Candies and chocolates are in high demand all across the world.
- Candies and chocolates can be consumed both as desserts and snacks.
- Psychologists cite evidence to prove that a piece of chewing gum can improve your mood, reduce stress, pain, increase your focus, and boost serotonin levels.
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Types Of Candies And Chocolates
1). Hard Candy:
Hard candy is a candy prepared from one or more syrups boiled at a temperature of 160°C (320 ° F). It is also known as boiled sweet. It is called hard candy because it becomes stiff and brittle when exposed to room temperature. Hard candy recipes call for sucrose, glucose, or fructose syrups in various ways. Fruit-shaped candies are excellent examples of this. Food colouring is sometimes used to add colour.
2). Soft Candy:
A perfect example of soft candies is cotton candy. Cotton candy is a kind of spun sugar, which is also known as candy floss. Soft candies are made through a centrifugal process from melted sugar squeezed out of a hole.
How To Start A Candy And Chocolate Production Business In Nigeria: A Step By Step Guide
1). Register A Business To Obtain The Required Approval:
The candy and chocolate production business involves edible products, so before starting the business, you need licenses and an operational permit from the food production authorities. Also, before starting or opening for business, you should register your business with the Corporate Affairs Commission.
2). Chose A Suitable Location:
You may want to factor in how you want to start the company when selecting a suitable location. If you start small, you can start right from your house and do not need to rent a shop or space immediately. However, it is often ideal to place your shop in a commercial area with lots of our target buyers, such as big stores and schools close by. Whatever space you choose, be sure it can accommodate your equipment and materials.
3). Source For The Raw Materials And Equipment:
Ensure that you do adequate homework on the appropriate equipment and supplies. Materials such as crates, ribbons, containers, colouring, and much more are required. Network with reputable suppliers for a constant supply of the materials needed. Also, invest in the right equipment.
4). Test Run:
You have to test the waters to know what works and what does not by giving it out to potential customers and family and friends free of charge before joining the market. The reviews will help you determine which variety to make and which ones to ignore for a start. After you have discovered the colours and styles that will sell when you have made your decision, you can go full-scale.
5). Hire Assistants And Staff:
Employ assistants to help you prepare the treat. Instruct them and educate them while you go along with the kitchen chores. Then there are the workers whose work is in the supermarket, the salespersons, distributors and a cashier.
6). Invest In Packaging:
Packaging should be very fancy to aid marketing. It helps to brand confectioneries. Employ the services of a graphics designer to create a branded design. Add a brochure if possible, where you can list the items you sell almost like a menu.
7). Leverage On Social Media Platforms:
Social media is one of the best platforms of adverts and marketing. Create enough social media presence and constantly update your products.
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Challenges Of Starting A Candy And Chocolate Production Business In Nigeria
- The high cost of candy making machinery and equipment.
- The high cost of labour.
- Occupational hazards associated with the business.
- Increase in market competition.
- Poor agro policies that affect cocoa production and distribution within the country.
- Transportation issues.
- Low humidity control measures in the country.
- Digital marketing challenges.
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To Sum It Up
The business of candy making holds a very profitable and lucrative potential, especially with the continual growth in emerging markets globally. Managed properly, it has the potential to grow into a million-dollar venture, therefore making it a worthwhile investment. The candy and chocolate production in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide network. If you’re looking for a lucrative business to venture into, the candy and chocolate production business in Nigeria is a great option to explore.
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