Executive Summary

Aug 2018
Growing interest in product narrative has created momentum for product innovation

Enthusiasm for higher-quality products has been at the forefront of value growth as consumer appetites demand more from ingredients, flavours and product presentation. Consequently, this has not only given scope for leading brand owners to innovate but it has also created an opening for smaller, specialist players like Hey Tiger and Pana Chocolate to enter the industry.

Permissible indulgences closes gap between health consciousness and indulgent snacking

Product innovation has also been influenced by rising health consciousness. Despite its strain on revenue growth, this trend has encouraged brand owners to focus on delivering “permissible indulgences”.

Gourmet trends driving enthusiasm for premium products

Despite the influence of promotional activity on retail value, premium product pricing has continuously countered the downward average price movement. The entrance and consistent flavour and technique innovation of boutique manufacturers has continued to heighten consumer enthusiasm for gourmet and personalised chocolate varieties, and this trend is expected to continue over the forecast period.

Competitive Landscape
Multinationals continue to lead

Demand for chocolate confectionery remained positive in 2018, underpinning the largest product category in confectionery overall. This trajectory has continued and is expected to continue over the forecast period as brand owners successfully respond to trends towards experiencing more and health and wellness.

Gifting drives growth for seasonal chocolates and boxed assortments

Seasonal chocolates and boxed assortments both experienced strong volume and value growth alongside the personalisation and sharing experience trends. This was particularly rewarding for Lindt & Sprungli, Ferrero Australia and Chocolatier Australia as a result of their gifting assortment ranges available during Valentine’s Day, Easter and the Christmas seasons.

Violet Crumble back in Australian ownership

Australian manufacturer Robern Menz has bought the well-known Australian chocolate bar Violet Crumble from Nestlé, putting it back under Australian ownership. Robern Menz is a fourth-generation family business and is Australia’s largest manufacturer of chocolate honeycomb.

Bubble gum continues to decline

Bubble gum is expected to continue to decline over the forecast period. The sugarised nature of the product will continue to deter consumers, particularly parents, from purchasing.

Flavour innovation remains limited

Product and flavour innovation has been limited within the Australian gum landscape, unlike in the US, where brands are a lot more experimental with their product offerings. In Australia, gum is predominantly considered a breath freshener, so that Peppermint and Spearmint flavours rank the highest.

Mars Wrigley makes a conscious effort to boost sustainable agricultural practices

In an effort to improve the long-term viability of mint farming in India, where 80% of the world’s mint is derived from, Mars Wrigley partnered with a non-profit organisation Agribusiness Systems International (ASI) to establish AdvanceMint, a mint sustainability programme. As the ethical consumer becomes more prominent, leading brand owners face increasing pressure to evaluate the sustainability of their supply chains and to respond to concerns accordingly.

Competitive Landscape
Mars continues to dominate the maturing gum category

Mars Australia dominated gum in 2018. Similar to its performance in 2017, its success was driven by its leading brands: Extra Active, Extra, Extra White and 5.

Functional properties invite innovation

Functional products that offer energy stimulation, weight management and health and wellness properties have been increasingly popular in packaged food and beverages. Similar to functional beverages, functional gum has been an area in which brand owners apply innovation and development to add value to their products.

Distribution defines demand

Due to the discretionary nature of gum and sugar confectionery, distribution remained the key variable driving demand. Forecourt retailers and convenience stores continued to be the most important distribution channels for these items.

Sugar confectionery growth remains conservative as a result of cross-category competition

Pastilles, gums, jellies and chews is driving value and volume growth within sugar confectionery. Flavour innovation and brand collaboration were key drivers to this growth in 2018.

Allen’s collaborates with Peters Ice Cream to create a sweet Australian hybrid

Confectionery giant Allen’s has collaborated with Peters Ice Cream to launch a hybrid of two iconic Australian brands in the form of Frosty Fruits and Drumstick lollies. This marked the first collaboration for Allen’s.

Visibility is what makes the difference

Whilst promotional pricing is key in driving growth within sugar confectionery, visibility is what makes the difference. As supermarkets and mass merchandisers continue to streamline product offerings, smaller channels like forecourt retailers and convenience stores have become paramount in driving value growth for impulse items, especially in categories where health consciousness is not as prominent, such as confectionery.

Competitive Landscape
Nestlé Australia and Mondelez Australia remain the leaders across categories

Nestlé Australia maintained its position as the leading brand across sugar confectionery categories in 2018, specifically in boiled sweets with Life Savers, in medicated confectionery with Allen’s Butter-Menthol and in the pastilles, gums, jellies and chews with its range of Allen’s lollies. Mondelez Australia closely followed with The Natural Confectionery Co and Pascall Marshmallows.

Darrell Lea bought by private equity firm

In early 2018, Darrell Lea was sold to a private equity firm Quadrant Private Equity. Since its voluntary administration in 2012, the iconic Australian confectionery manufacturer has regained a strong position in both chocolate and liquorice categories.

Private label growth is stunted by leading players and small manufacturers

The presence of private label in sugar confectionery remains conservative. This is particularly the case within boiled sweets, liquorice, pastilles, gums, jellies and chews.

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The Confectionery in Australia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Confectionery in Australia?
  • What are the major brands in Australia?
  • With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
  • How are manufacturers addressing consumer concerns over health and obesity?
  • What does the future hold for ethically sourced products?

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This industry report originates from Passport, our Packaged Food market research database.

Chocolate Confectionery


Sugar Confectionery

Packaged Food in Australia - Industry Overview


Adventurous consumer palates drive innovation across packaged food
Product narrative key in driving consumer engagement in 2018
Private label continues to capture sales from branded products
Supermarkets continue to lead food distribution
Portion control and on-the-go solutions to drive growth


Sales to Foodservice
Health and wellness drives growth
Consumer Foodservice
Desire for new experiences and health and wellness boost the consumer foodservice performance


Table 1 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023


Table 5 Sales of Packaged Food by Category: Volume 2013-2018
Table 6 Sales of Packaged Food by Category: Value 2013-2018
Table 7 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 8 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 9 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 10 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 11 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 12 Penetration of Private Label by Category: % Value 2013-2018
Table 13 Distribution of Packaged Food by Format: % Value 2013-2018
Table 14 Distribution of Packaged Food by Format and Category: % Value 2018
Table 15 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 16 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 17 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 18 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023


Summary 1 Research Sources