Industry Analysis & Industry Trends
The Chocolate and Confectionery Manufacturing industry has grown over the past five years despite the rise in health consciousness in Australia. Industry operators have benefited from a significant drop in the price of sugar over the period, allowing them to pass on the savings to their customers and increase sales. Furthermore, industry firms have increased their product diversification and introduced healthier products in line with changing consumer tastes, which has helped minimise the number of consumers switching to substitute products. As a result, industry revenue is expected to grow at an annualised 3.5% over the five years through 2015-16, to reach $6.5 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The industry displays moderate barriers to entry and this trend has remained steady over the past five years. Barriers to entry often vary among product segments. Chocolate manufacturing is typically more capital-intensive and requires a higher level of investment to commence operations. In comparison, confectionery and chewing gum production tend to be more labour-intensive and the absolute cost of entry is not prohibitive. Therefore, it is easier to enter the industry as a confectionery manufacturer and a large number of players operate in this segment.
The biggest threat facing potential entrants is the well-entrenched positions of the industry's major players... purchase to read more