The premium value added characteristic of handmade fresh products will boost popularity of small niche confectionery makers.
Melbourne, Australia (PRWEB) September 14, 2014
Over the past five years, players in the Confectionery Manufacturing industry in Australia have shown signs of struggle. “The high sugar and carbohydrate content of many confectionery goods has caused Australian consumers to turn away from products produced by the industry,” according to IBISWorld industry analyst Ryan Lin. This trend has largely been assisted by persisting high levels of health consciousness, which has alerted the Australian population about the negative consequences of over consumption, and high-sugar and fat diets. While industry operators have also attempted to appeal to the health-conscious consumer, sugar-free and fat-free products have not performed as well, due to the growing number of competing food items on the market. As a result, over the five years through 2014-15, industry revenue is forecast to decline at an annualised 0.1% to total $1.46 billion. Industry revenue is expected to decline by 1.8% over 2014-15, with consumers continuing to favour healthier sweets and snacks.
Confectionery goods have traditionally been associated with sugary sweets typically aimed at younger consumers. “This has made the rebranding and repositioning of healthier varieties more difficult for larger confectionery manufacturers,” says Lin. Being sugar-free or fat-free is simply not sufficient to spark a new wave of consumer demand. Despite this, IBISWorld anticipates that small niche makers of confectionery – especially boutique confectionery and candy makers – are expected to perform significantly better, owing to the premium value added characteristic of handmade fresh products.
Over the next five years, the Confectionery Manufacturing industry is expected to perform significantly better, returning to growth. The increasing adoption of sophisticated ingredients and new product options are anticipated to attract greater consumer attention, particularly at a time that larger industry operators continue to heavily market their goods. The industry displays medium market share concentration. Major players include Nestle Australia Ltd, Mondelez Australia Holdings Pty Ltd and Mars Australia Pty Ltd.
For more information, visit IBISWorld’s Confectionery Manufacturing industry in Australia report page.
This industry includes firms that are primarily engaged in manufacturing confectionery. This industry excludes the manufacturing of chocolate and chewing gum.
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Products & Services
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