Industry Analysis & Industry Trends
The Chocolate and Confectionery Manufacturing industry has remained resilient over the past five years despite challenging operating conditions. Increasing health consciousness has required manufacturers to be innovative with their product lines and adapt to shifting consumer demands. In particular, consumers have demanded more ethical and sustainable production methods, resulting in the significant growth of fair trade and organic chocolate products. Greater demand for industry products from supermarkets and grocery stores along with rising household disposable incomes have underpinned industry growth over the period. Industry revenue is projected to increase at a compound annual rate of 2.7% over the five years through 2015-16. This includes a forecast 1.3%... purchase to read more
Industry Report - Industry Investment Chapter
The industry displays a moderate level of capital intensity. In 2015-16, for every dollar spent on wages, an estimated $0.25 is invested in capital. Capital intensity varies greatly among industry players. Larger manufacturers typically invest substantial amounts of capital in machinery to automate production and reduce marginal costs. Most manufacturing plants require high levels of capital expenditure on automated equipment and sophisticated technologies. These can increase productivity without the need for additional labour.
However, the industry also requires more labour than other food manufacturing industries due to greater product diversity... purchase to read more