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.
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”.
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.
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.
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.
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 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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
The presence of private label in sugar confectionery remains conservative. This is particularly the case within boiled sweets, liquorice, pastilles, gums, jellies and chews.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Australia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Confectionery industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.
The Confectionery in Australia market research report includes:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Packaged Food market research database.