Gummy manufacturing costs are rising thanks to many factors, including the cost of goods – raw materials, and soaring energy prices.
Are you planning on purchasing wholesale gummies or working with a USA-based gummy manufacturer like Sky Nutro over the next 12 months? If so, you might want to lock in pricing now as we are seeing the cost of goods (COGs) rising dramatically.
What factors are driving up the cost of gummy manufacturing?
In reality, just about everything is getting more expensive. The main drivers behind wholesale gummy cost increases are.
- Pectin prices – pectin is in demand. Pectin is manufactured from apple pulp and citrus fruit skins. It is used for many food products, including beverages, jelly, and jams. We use considerable amounts of pectin to manufacture our vegan gummies. According to expertmarketresearch.com, the demand will increase by 30% over the next five years. We expect a corresponding price increase.
- Sugar prices – continued demand and cost of manufacturing. While sugar demand isn’t scaling as rapidly as pectin, forecasts still call for 1% growth annually through 2027. We expect sugar costs to rise because of the cost of manufacturing and shipping (fuel and electricity cost increases).
- Electricity costs are skyrocketing. Gas and coal prices are at all-time highs, resulting in higher electricity fees.
Manufacturing facilities, including Sky Nutro, use a lot of electricity to run machinery, air filtration systems, compressors, lighting, etc. According to eia.gov, the cost per kilowatt hour will increase by 6.1% from 2021 to 2022. We hope this estimate is aggressive as this will significantly affect our manufacturing cost.
Are you considering ordering from a gummy manufacturer like Sky Nutro?
If so, we recommend locking in your order as soon as possible. Once we have a purchase order agreement, we will meet the costs outlined.
For more information about our wholesale gummy manufacturing, please click here.
eia.gov – short-term energy outlook: https://www.eia.gov/outlooks/steo/report/electricity.php
eia.gov – what is behind soaring energy costs? https://www.iea.org/commentaries/what-is-behind-soaring-energy-prices-and-what-happens-next
expertmarketresearch.com – Sugar forecast: https://www.expertmarketresearch.com/reports/sugar-market-report
expertmarketresearch.com – Pectin forecast: https://www.expertmarketresearch.com/reports/pectin-market