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This was largely driven by continued consumer demand for premium quality chocolate.
Consumers continued to view chocolate confectionery as an indulgence, with health-conscious consumers choosing to moderate their chocolate intake or move to higher cocoa content varieties rather than moving to other snacks, according to trade sources.
The company experienced a gradual decline over the review period largely due to a decline in its mainstream chocolate brand as more premium positioned brands grew. Value growth will continue to experience pressure from supermarket promotions, especially as the supermarkets battle to retain sales share from discounter, Aldi, as well as defend themselves against the entry of other potential competitors such as Amazon and Kaufland.
There was widespread speculation in the media that both these companies would enter Australia inhowever, how they will enter remains unknown.
Continued supermarket promotions will also be reflected in a decline in unit price over the forecast period with unit price of chocolate confectionery at AUD Gum in Australia continued to experience relatively flat growth compared to other confectionery products.
Gum continued to be positioned as a breath freshener with value growth constrained by competition from mints used for the same purpose.
Spearmint and peppermint remained number one and number two, respectively, for flavour preferences in gum, as consumers regard the products as a breath freshener rather than primarily offering enjoyable flavours.
Its continued dominance in bubble gum was largely due to the declining nature of the category. In particular, consumers remained averse to sugarised products, particularly health-conscious parents.
There was also a general lack of innovation in the category with no new major manufacturers entering bubble gum. Gum will face challenges including competition from mints as a breath freshener. The declining number of cigarette smokers will also mean less need for the breath freshening function of gum, leading to intensified competition between gum and mints.
To avoid this, manufacturers will continue to change the image of their products shifting it from a sole purpose as a breath freshener to a product with attributes that consumers find appealing, for example associations with success or connecting with other people.
The category continued to compete with chocolate confectionery as a way for consumers to satisfy their sweet craving. While chocolate confectionery continued to experience solid growth, exceeding population growth, consumers were much less receptive to sugar confectionery.
Chocolate confectionery continued to be viewed as an indulgence, with health-conscious consumers choosing to moderate their chocolate intake rather than move away from the category. In contrast, consumers remained wary of sugar intake and its perceived link with health concerns such as diabetes and obesity.
As a result, sugar confectionery growth remained modest in The company also holds a sizeable share within other sugar confectionery categories including standard mints, toffees, caramels and nougat, and lollipops. Sugar confectionery will continue to experience increasing competition from other snack categories including chocolate confectionery which continues to offer an indulgent and premium experience.
Savoury snacks will also continue to grow as a competitor as millennials often show a preference for savoury over sweet snacks in Australia.
|Home | CE Intelligence||This was largely driven by continued consumer demand for premium quality chocolate. Consumers continued to view chocolate confectionery as an indulgence, with health-conscious consumers choosing to moderate their chocolate intake or move to higher cocoa content varieties rather than moving to other snacks, according to trade sources.|
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Published: Mon, 5 Dec Cadbury was formed by a merger in Since then the business has expanded into a leading international confectionery and beverages company.
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