Innovation alleviated some consumer nutritional concerns and stimulated demand in the Confectionery and Soft Drink Wholesaling industry
Melbourne, Australia (PRWEB) April 27, 2012
Strong competition, innovative marketing techniques, flavours, packaging and delivery systems make confectionery, snack foods and soft drinks one of the most dynamic sectors in the Australian food and beverage market. While the Confectionery and Soft Drink Wholesaling industry represents only a small part of this sector, its fortunes are inextricably tied to the trends prevalent in the upstream industries. IBISWorld industry analyst Naren Sivasailam explains, ‘Over the past five years, there has been a series of takeovers and mergers, which has increased concentration.’ The industry has a medium level of market share concentration. The industry's major players are Coca-Cola Amatil Ltd, Cadbury Australia Ltd, Nestle Australia and Mars Australia.
Over the past five years, industry growth was boosted by product innovation, which helped alleviate some nutritional concerns and stimulated demand through new products. Sivasailam adds ‘growth has been constrained over the period by the increasing incidence of wholesale bypass, whereby supermarkets have been able to purchase their products directly from manufacturers.’ Industry revenue also faced upwards pressure from some increases in input costs such as cocoa, milk and sugar. IBISWorld estimates industry revenue will increase an annualised 1.8% over the five years through 2011-12, to total $2.55 billion. Revenue in 2011-12 will grow 2.2% from the previous year.
Over the next five years, from a manufacturing perspective, growth will largely be driven by new product introductions that address the trends of health and convenience, while remaining faithful to taste. The Confectionery and Soft Drink Wholesaling industry is also expected to continue to benefit from trends towards higher value, premium confectionery products such as organic chocolate, fair trade chocolate, single-origin chocolate and exotic flavours reflecting consumer trends towards luxury and income growth over the period.
For more information, visit IBISWorld’s Confectionery and Soft Drink Wholesaling report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
This industry includes those whose primary activity is wholesaling confectionery, snack foods, or soft drinks. Confectionery includes chocolate or cocoa products, chewing gum, and sugar confectionery. Snack products include potato crisps, corn chips, nuts and pretzels, and nutritious snacks. Soft drinks include carbonated and non-carbonated beverages, cordials and syrups, excluding bottled water, fruit juice, alcoholic beverages or milk drinks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.