$7.9 billion Australian confectionery manufacturing sector likely to continue revenue decline, report predicts 

Revenues for the nation’s chocolate and confectionery manufacturing sector are expected to decline, following a negative 1.9 per cent compound annual growth rate over the last five years, according to new market research from IBISWorld.

In its Chocolate and Confectionery Manufacturing in Australia – Market Research Report (2015-2030), updated this month, IBISWorld described a sector worth $7.9 billion currently. The three biggest companies were Mondelez Australia (revenues of $1.01 billion), Mars Wrigley ($758 million) and Nestle ($463.4 million.)

An industry shift predicted over the next five years is a consumer preference for “high-quality chocolate and confectionery products” and a continued shift “away from processed foods, particularly varieties with high sugar contents. 

“Reduced demand for chocolate and confectionery with high sugar and fat contents is fuelling demand for substitute products, like dried fruit and nuts.

“This trend is projected to drive greater production among healthy snack producers, driving up competition for the industry. This shift is set to contribute to a decline in the industry’s enterprise count.”

The current level of competition is described as “high and increasing” in the sector, made up of 373 businesses in total. 

The predicted decrease in overall revenues or number of enterprises was not given in the update.

Picture: credit Shizhao  (CC BY-SA 3.0)