Meltdown: Industry revenue has declined due to Max Brenner closing over half its stores

The rapid rise of premiumisation as a consumer trend has supported Specialty Chocolate Stores industry revenue over the past five years. New players have entered the industry over the period, and many existing enterprises have expanded or franchised. However, major player Max Brenner closed over half of its outlets in October 2018, which contributed to a sharp fall in industry revenue in 2018-19. Overall, industry revenue is expected to decline at an annualised 1.8% over the five years through 2019-20, to $295.3 million. This trend includes anticipated growth of 1.4% in the current year, as the industry recovers from the closure of the Max Brenner outlets.Consumers purchase premium chocolates as an affordable indulgence or as a gift for special occasions...read more.

Industry Statistics & Market Size
Revenue
$295m
Annual Growth 15-20
-1.8%
Forecast Growth 20-25
Profit
Employment
2,826
Businesses
322

Industry Threats & Opportunities

  • Industry profitability depends on the availability and price of high-quality inputs
  • Franchised specialty chocolate stores have been more successful than their coffee shop equivalents
  • The expansion and franchising of specialty chocolate stores is forecast to help reduce costs
  • Industry Report - Industry Key Buyers Chapter

    The Speciality Chocolate Stores industry exhibits a moderate level of market share concentration, with the top four operators expected to account for approximately 65% of industry revenue in the current year. However, outside of the major players the industry is highly fragmented consisting of a large number of small, independent stores. Concentration has increased marginally over the past five years, as the large operators have continued to expand their locations.Although barriers to entry are low, the existing players have well-established brands and strong reputations. However, there is an opportunity for stores to differentiate themselves from competitors by offering specialised products. Som...purchase to read more.

    Additional Insights for the Specialty Chocolate Stores Industry

    IBISWorld has determined the most important Key Success Factors for the Specialty Chocolate Stores are:

  • Attractive product presentation
  • Production of premium goods/services
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Domestic price of sugar in the Specialty Chocolate Stores industry impact industry performance..

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    What's in this report

    What is the Specialty Chocolate Stores Industry?

    Industry operators are primarily engaged in retailing chocolate and chocolate products. The industry includes specialty and boutique chocolate stores that also retail products such as hot chocolate, cakes and pastries. Supermarkets and department stores are excluded from the industry.

    Industry Products
  • Premium chocolate
  • Seasonal and boxed chocolate
  • Other products
  • Food and beverages
  • Industry Activities
  • Premium chocolate retailing
  • Specialty chocolate retailing
  • Seasonal and boxed chocolate retailing
  • Organic chocolate retailing
  • Fair trade chocolate retailing
  • Other non-chocolate product retailing
  • Chocolate-based food and beverage retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Domestic price of sugar
  • Health consciousness
  • Real household discretionary income

  • Current Performance
  • Premiumisation drives demand
  • Competition increases
  • Seasonal fluctuations
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Franchises and expansion
  • Profit margins squeezed
  • Rising health consciousness
  • Table: Specialty Chocolate Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Specialty Chocolate Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cafes and Coffee Shops
  • Consumers

  • Key Selling Industries
  • Chocolate and Confectionery Manufacturing
  • Milk and Cream Processing
  • Soft Drink and Pre-Packaged Food Wholesaling

  • Products & Services
  • Premium chocolate
  • Food and beverages
  • Seasonal and boxed chocolate
  • Other products
  • Chart: Specialty Chocolate Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 55 and over
  • People aged 15 to 34
  • Chart: Major Market Segmentation for the Specialty Chocolate Stores 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 Specialty Chocolate Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Specialty Chocolate Stores Industry

  • Industry Globalization
    Venga Pty Limited, A.E. Haigh Proprietary Limited, Lindt & Sprungli (Australia) Pty Ltd, Koko Black Australia Pty Ltd, MB Australia 2000 Pty Ltd,
  • Table: Venga Pty Limited - financial performance
  • Table: A.E. Haigh Proprietary Limited - financial performance
  • Table: Lindt & Sprungli (Australia) Pty Ltd - financial performance
  • Table: Koko Black Australia Pty Ltd - financial performance
  • Table: MB Australia 2000 Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Specialty Chocolate Stores 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 Specialty Chocolate Stores Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Artisan Chocolates
  • Artisan chocolates refer to chocolates that have been handmade by a specialist in chocolate making. Chocolate batches are generally of a small quantity.
  • Chocolatier
  • A chocolatier is someone who specialises in the making or selling of chocolates.
  • Conching
  • A process of constant stirring used in the production of chocolate. Frictional heat obtained causes oxidisation which provides flavour.
  • Point Of Sale
  • Point of sale equipment refers to equipment used in processing transactions, such as a cash register.
  • What Our Customers Say

    Why buy this report?

    The Specialty Chocolate Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Specialty Chocolate Stores:
    • 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 Specialty Chocolate Stores 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 Specialty Chocolate Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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