Chocolate and Confectionery Manufacturing in Australia - Industry Market Research Report

Unwrapped: Cost of living pressures are reducing consumer demand for products

Growing consumer concern around the quantities of fat and sugar in foods have limited demand for traditional chocolate and confectionery over the period. At the same time, consumers have increasingly preferred premium products, in line with a broader upwards trend in appreciation for higher quality food, and modest disposable income growth has reinforced this consumer preference. Overall, industry revenue has risen at an annualised 1.7% through the end of 2022-23, to total $7.3 billion. This includes a decline of 1.9% in the current year, as persistently high inflation and increasing interest rates cut into consumer spending. Rising input costs are also eating into profit margins, which have fallen over the period. Industry firms primarily manufacture confectionery, chocolate or cocoa products, with or without added sugar. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.