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Chocolate and Confectionery Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Date:10/21/2013

Melbourne, Australia (PRWEB) October 22, 2013

The Australian Chocolate and Confectionery Manufacturing industry has remained fairly resilient over the past five years despite a recessive economy, falling disposable incomes, volatile commodity prices and increasing import competition. The advent of the health-conscious consumer has required producers to be innovative with their product lines and adapt them to changing consumer trends. IBISWorld industry analyst Kosta Lev states “chocolate producers have been focusing their efforts on premiumisation, particularly with new product introductions and associated marketing strategies.” Consumers, especially in the developed world, have looked to trade up to more luxury food products with indulgences in higher priced products and premium brands. Over the five years through 2013-14, industry revenue is estimated to increase at an annualised 1.0%. Revenue is forecast to decline by 1.9% in 2013-14 to reach $6.2 billion, due to a temporary slump in demand.

The high level of value addition during the production process has enabled the industry's major players to maintain high profit margins and perform well despite recessive economic conditions. The high brand and customer loyalty commanded by the major players has also contributed to high profit margins and sales. According to Lev, “the organic and fair trade segment has been the standout performer in the industry during the past five years, driven by consumer preferences for ethical and sustainable methods of production.” As economic conditions improve, IBISWorld expects sustained consumption of chocolate and confectionery. Consumers tend to indulge themselves with inexpensive, feel-good luxuries such as chocolate and confectionery in an atte
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