Health consciousness has led many consumers to opt for lower volumes of chocolate, with a focus instead on value and quality.
Melbourne, Australia (PRWEB) September 24, 2013
As the trend of premiumisation spreads, the Specialty Chocolate Stores industry in Australia has reaped the rewards. New players have entered the industry and existing enterprises have expanded or franchised, with the unfortunate exception of Darrell Lea Chocolates. With consumers devouring the industry's delicacies, revenue is forecast to grow at a compound annual rate of 4.7% over the five years through 2013-14. Consumers opt for premium chocolates as a little luxury in their day-to-day lives, and as a symbolic gift for special occasions. According to IBISWorld industry analyst Emily Witham, "industry revenue is expected to grow by 7.5% over 2013-14, bringing revenue to $279.6 million, with sales of artisan chocolate and seasonal or boxed chocolates driving revenue growth."
The general trend of health consciousness among consumers is growing, resulting in mixed outcomes for the Specialty Chocolate Stores industry. The widely accepted fact that consuming large amounts of chocolate is poor for heath has driven down overall chocolate consumption. On the other hand, it has also led many consumers to opt for lower volumes of chocolate, with a focus instead on value and quality. "Furthermore, at times when discretionary incomes decline, consumers often look to premium chocolates as an affordable luxury," says Witham. The viability of the industry, particularly with regard to handcrafted chocolates, depends on the availability and price of key quality inputs. The origin and quality of cocoa beans or powder is increasingly becoming a point of differentiation for various varieties of premium chocolates. Similarly, fluctuations in the price of dairy products and sugar affect industry profit margins. The Specialty Chocolate Stores industry is characterised by a low level of market share concentration, with major players including MB Australia 2000 Pty Ltd, Chocolateria San Churro Limited and A.E. Haigh Proprietary Limited.
The trend of premiumisation is expected to be a key driver for the Specialty Chocolate Stores industry over the next five years. As supermarkets and department stores expand their ranges and selection of quality chocolates at affordable prices, competition for specialty chocolate stores will grow. Differentiation of products is likely to be one of the most important drivers for the industry, as quality and service set apart the luxury experience provided by specialty chocolate stores.
For more information, visit IBISWorld’s Specialty Chocolate Stores in Australia industry report page.
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IBISWorld industry Report Key Topics
Operators in the industry are primarily engaged in the retail of chocolate and chocolate products. This includes specialty and boutique chocolate stores that may also retail products such as hot chocolates, cakes and pastries. Supermarkets and department stores are excluded from the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.