Sweet like chocolate: Consumer demand is shifting towards premium goods and niche firms

Operators in the Chocolate and Confectionery Manufacturing industry have faced changing consumer preferences over the past five years. Growing consumer concerns about the amount of fat and sugar in foods have weakened demand for traditional chocolate and confectionery over the period, particularly in regards to mass-produced products. Industry participants have diversified their ranges and introduced healthier products in an attempt to limit the number of consumers switching to substitute products, such as yoghurt. Additionally, consumer demand for premium products has increased over the past five years, which has helped support industry revenue. Industry revenue is expected to fall at an annualised 0.1% over the five years through 2018-19, to be worth $6.3 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Consumers have increasingly opted for healthier, premium and more sustainable industry products
  • Increasing health consciousness has contributed to revenue declines over the past five years
  • The major supermarkets are likely to expand their private-label brands over the next five years
  • Industry Report - Industry Locations Chapter

    The geographic spread of the Chocolate and Confectionery Manufacturing industry is closely correlated with Australia’s population and economic activity. The majority of industry operators are situated on the eastern seaboard, close to major ports, for easy access to cocoa and sugar imports and downstream markets. In particular, Victoria and New South Wales make up two-thirds of businesses in the industry. Despite Queensland’s large share of the population, it has a smaller share of participants. This is largely due to the perishable nature of industry products, particularly chocolate, with many industry operators tending to be closer to Melbourne and Sydney, where the major consumer markets are...purchase to read more.

    Additional Insights for the Chocolate and Confectionery Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Chocolate and Confectionery Manufacturing are:

  • Marketing of differentiated products
  • Economies of scope
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Demand from supermarkets and grocery stores in the Chocolate and Confectionery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Chocolate and Confectionery Manufacturing Industry?

    Industry firms primarily manufacture confectionery, chocolate or cocoa products, with or without added sugar.

    Industry Products
  • Chocolate
  • Confectionery
  • Cocoa products
  • Industry Activities
  • Chewing gum
  • Chocolate
  • Cocoa product
  • Confectionery
  • Crystallised or glazed fruit
  • Drinking chocolate
  • Liquorice
  • Marshmallow
  • Candied nut
  • Candied popcorn
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Demand from supermarkets and grocery stores
  • Health consciousness
  • Demand from food product manufacturing
  • World price of cocoa
  • Trade-weighted index

  • Current Performance
  • Revenue and profitability
  • Changing consumer tastes
  • Competitive pressures
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Changing market
  • Competitive pressures
  • Industry structure
  • Table: Chocolate and Confectionery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chocolate and Confectionery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Biscuit Manufacturing
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Catering Services
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Butter and Dairy Product Manufacturing
  • Milk Powder Manufacturing
  • Paper Product Wholesaling
  • Sugar Manufacturing
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Chocolate
  • Cocoa products
  • Confectionery
  • Chart: Chocolate and Confectionery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Food manufacturers
  • Export markets
  • Food-service establishments
  • Chart: Major Market Segmentation for the Chocolate and Confectionery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Chocolate and Confectionery Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chocolate and Confectionery Manufacturing Industry

  • Industry Globalization
    Mondelez Australia Holdings Pty Ltd, Wrigley Uno 2 Australia Pty Limited, Nestle Australia Ltd,
  • Table: Mondelez Australia Holdings Pty Ltd - financial performance
  • Table: Wrigley Uno 2 Australia Pty Limited - financial performance
  • Table: Nestle Australia Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chocolate and Confectionery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chocolate and Confectionery Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Enhanced Project By-Laws Scheme (Epbs)
  • A now-ended industry assistance scheme that allowed duty-free importation of capital equipment that was not made in Australia or was technologically superior to Australian made equipment.
  • Food Standards Australia New Zealand
  • The agency responsible for developing and administering requirements for food safety and labelling in Australia and New Zealand.
  • Winnowing
  • The process of removing the outer husk of the cacao bean to release the inner nibs during the chocolate manufacturing process.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chocolate and Confectionery Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Chocolate and Confectionery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chocolate and Confectionery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chocolate and Confectionery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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