Confectionery Sector Braced for Shortages as Iran Conflict Escalates

As the conflict disrupts key trade routes and energy supplies, the confectionery sector is among the first to feel the strain. How vulnerable are manufacturers, and what can be done to protect the industry?

As the Iran conflict enters its sixth day, concerns over supply-chain security and the availability of key ingredients are dominating food and beverage, with several categories already feeling the strain.

Among the most vulnerable is confectionery – a sector highly exposed to supply-chain volatility and one that often experiences global supply shocks earlier and more intensely than others.

Sugar, cocoa, glucose syrups, packaging materials, specialty fats, and key additives all rely on global freight routes, many of which are now facing significant disruption as a result of the closure of the Strait of Hormuz.

The intensity of the military bombardment have rendered it impassable, leading major carriers to suspend vessel traffic through the area. Added to this, container ships already in the region have become trapped, disrupting flows of commodities and perishable goods worldwide.

Added to this, confectionery manufacturers are highly dependent on energy sourced from the Middle East.

“These companies rely on natural gas as a process fuel in food manufacturing, oil is key in packaging materials, and ingredient inputs like sugar are tied to energy markets,” says Lisa Anderson, president of supply chain specialists LMA Consulting Group. “Since the Strait of Hormuz carries 20% of oil and 20% of liquified natural gas, the fact that it has slowed and energy has stopped flowing is critical.”

And some manufacturers will be hit harder than others, depending on their location. The US, explains Anderson, has “turned up production” in recent years, meaning it’s increased domestic output and built up more resilient supply buffers.

Supply Chain Protection

As geopolitical unrest grows, it is essential that manufacturers across the confectionery industry look to protect themselves and their supply chains.

To start with, “every manufacturer should diversity sources of supply by country, region, supply chain chokepoint, size, and other key factors,” says LMA Consulting Group’s Anderson. Though she cautions that diversification alone isn’t enough.

Confectionery companies, she says, must reevaluate their supply chains and make appropriate changes.

“Depending on their supply chain network and capabilities, they could reallocate production, add suppliers, friend-shore within regional supply chains, expand domestic manufacturing or re-shore to mitigate risks and increase control.”

Safeguarding Supplies

“Traditional logistics controls will not suffice,” says Anderson.

Companies, she says, must roll out a comprehensive approach to the safety of their ingredients and products, combining supply chain visibility, security protocols, and supplier governance. Gaining “real-time visibility across the supply chain” is an important first step.

Companies, she says, can start by simply getting information from each of their supply chain partners. This can then be supplemented with artificial intelligence and advanced technologies such as GPS tracking, geofencing alerts, IoT sensors for temperature, shock and other data, and integration with control tower technologies. To gain ideas on how to utilize AI and advanced technologies to help manufacturers use AI to power supply chains and smarter decisions, download our eBook.

And that’s not all, “packaging should be tamper-resistant and tamper-evident,” says Anderson.

Read the full article at Confectionery News, published 6 March 2026

 

If you are interested in reading more on this topic:
The War in Iran, Supply Chain Impacts & Actions