SIC 2067 Chewing Gum

Encyclopedia of American Industries | 2005 | Copyright

SIC 2067
CHEWING GUM

This industry consists of establishments primarily engaged in manufacturing chewing gum or chewing gum base.

NAICS Code(s)

311340 (Non-Chocolate Confectionery Manufacturing)

Industry Snapshot

The American chewing gum industry has been marked by strong periods of growth and decline throughout the twentieth century. Since the 1970s this industry has been growing at a faster pace overseas than within the United States. The industry's overall success has been the result of low manufacturing costs and aggressive marketing campaigns. In 2001 there were 10 U.S. manufacturers in this industry, according to the National Association of Chewing Gum Manufacturers.

As one of the best performers in the candy industry, chewing gum continues to be a favorite among American consumers. Overall domestic gum sales, however, were flat in the late 1990s, though sales of sugar and sugar-free gum continued to rise steadily. Consumers, adults, seniors, and children alike continue chewing various types of gum for a variety of reasons, thereby adding to the market demand in this industry. Innovations such as smoking-cessation gums and dental gums, which offered promises to clean teeth, entered the industry in the late 1990s. Retail chewing gum sales in 2001 totaled $2.8 billion.

Organization and Structure

Chewing gum companies use two main channels of distribution: one channel is through wholesalers, who supply retail stores in the areas they serve; the other channel is the delivery of boxes of chewing gum directly to large retail outlets from the manufacturers' warehouses and factories. The retail distribution chain includes food, drug, variety, and convenience stores, gas stations, newsstands, and restaurants. Another important channel for these manufacturers has been distributors who stock vending machines.

Background and Development

History. Though chewing gum bases are primarily synthetic today, gum was originally derived from natural sources such as tree resins and saps. The use of chewing gum made from tree resin dates back to ancient Greek and Mayan civilizations. In North America, Wampanoag Indians introduced chewing gum to European settlers. The gum was made from the resin of spruce trees.

Americans began manufacturing gum in the mid-1800s, adding paraffin wax, which was used to make the gum softer and last longer. At about this time flavors such as mint were added to the gum,...

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