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Online confectionery wholesaler CandyWarehouse has filed for Chapter 11 bankruptcy protection, becoming the latest casualty of soaring ingredient prices and shifting consumer preferences in the sweets market.

The Sugar Land (name of the city), Texas-based company, which supplies bulk candy to hotels, restaurants and event planners, submitted its petition on October 24.

Court filings from the company has show assets valued between $100,000 and $500,000, against liabilities estimated at $1 million to $10 million.

Founded in 1998, CandyWarehouse operates as a woman-owned, family-run business serving both retail and commercial customers.

The filing allows the company to continue trading while restructuring its debt, with a court hearing scheduled for October 29 to determine whether it can maintain operations and meet payroll and supplier obligations.

Industry observers say the bankruptcy underscores the pressures facing confectionery producers and distributors as raw material costs for key ingredients such as sugar and cocoa reach multi-decade highs.

Cocoa futures have surged more than 80% since 2023, driven by poor West African harvests, while sugar prices have risen sharply amid supply constraints in India and Thailand.

Major confectionery producers have already passed costs down the chain. Hershey raised prices by up to 20% in July, citing record cocoa prices, while Mondelez International introduced similar hikes earlier in the year. Smaller businesses, however, have found it harder to absorb or transfer these costs without losing customers.

At the same time, the sector faces long-term headwinds from changing dietary preferences. Demand for low-sugar, plant-based and functional snacks continues to grow, putting traditional candy producers under additional strain.