Market Line IC Australia Confectionery 070819 PDF

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MarketLine Industry Profile

Confectionery in Australia February 2019 Reference Code: 0125-0710

Publication Date: February 2019

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EXECUTIVE SUMMARY Market value The Australian confectionery market grew by 3.7% in 2018 to reach a value of $3,450.8 million.

Market value forecast In 2023, the Australian confectionery market is forecast to have a value of $4,186.4 million, an increase of 21.3% since 2018.

Market volume The Australian confectionery market grew by 2.1% in 2018 to reach a volume of 224 million kilograms.

Market volume forecast In 2023, the Australian confectionery market is forecast to have a volume of 247.4 million kilograms, an increase of 10.4% since 2018.

Category segmentation Chocolate is the largest segment of the confectionery market in Australia, accounting for 70.4% of the market's total value.

Geography segmentation Australia accounts for 8.3% of the Asia-Pacific confectionery market value.

Market share Mondelez International, Inc is the leading player in the Australian confectionery market, generating a 33.4% share of the market's value.

Market rivalry The Australian confectionery market experienced moderate growth during the review period (2014-2018). Players in this market are often quite diversified, but generally tend to depend heavily on the food and beverage market. This, and the low cost of switching for end consumers, drives rivalry, although the latter can be mitigated to some extent by strong branding. Overall, the degree of rivalry in this market is assessed to be moderate.

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TABLE OF CONTENTS Executive Summary......................................................................................................................................................... 2 Market value................................................................................................................................................................ 2 Market value forecast.................................................................................................................................................. 2 Market volume............................................................................................................................................................. 2 Market volume forecast............................................................................................................................................... 2 Category segmentation............................................................................................................................................... 2 Geography segmentation............................................................................................................................................ 2 Market share................................................................................................................................................................ 2 Market rivalry............................................................................................................................................................... 2 Market Overview.............................................................................................................................................................. 7 Market definition.......................................................................................................................................................... 7 Market analysis............................................................................................................................................................ 7 Market Data..................................................................................................................................................................... 9 Market value................................................................................................................................................................ 9 Market volume........................................................................................................................................................... 10 Market Segmentation..................................................................................................................................................... 11 Category segmentation.............................................................................................................................................. 11 Geography segmentation.......................................................................................................................................... 12 Market share.............................................................................................................................................................. 13 Market distribution..................................................................................................................................................... 14 Market Outlook.............................................................................................................................................................. 15 Market value forecast................................................................................................................................................ 15 Market volume forecast............................................................................................................................................. 16 Five Forces Analysis...................................................................................................................................................... 17 Summary................................................................................................................................................................... 17 Buyer power.............................................................................................................................................................. 18 Supplier power........................................................................................................................................................... 19 New entrants............................................................................................................................................................. 20 Threat of substitutes.................................................................................................................................................. 21 Degree of rivalry........................................................................................................................................................ 22 Leading Companies....................................................................................................................................................... 23

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Chocoladefabriken Lindt & Sprungli AG.................................................................................................................... 23 Mars, Incorporated.................................................................................................................................................... 26 Mondelez International, Inc....................................................................................................................................... 28 Nestle SA................................................................................................................................................................... 32 Macroeconomic Indicators............................................................................................................................................. 36 Country data.............................................................................................................................................................. 36 Methodology.................................................................................................................................................................. 38 Industry associations................................................................................................................................................. 39 Related MarketLine research.................................................................................................................................... 39 Appendix........................................................................................................................................................................ 40 About MarketLine...................................................................................................................................................... 40

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LIST OF TABLES Table 1: Australia confectionery market value: $ million, 2014–18..................................................................................9 Table 2: Australia confectionery market volume: million kilograms, 2014–18................................................................10 Table 3: Australia confectionery market category segmentation: $ million, 2018..........................................................11 Table 4: Australia confectionery market geography segmentation: $ million, 2018.......................................................12 Table 5: Australia confectionery market share: % share, by value, 2018......................................................................13 Table 6: Australia confectionery market distribution: % share, by value, 2018..............................................................14 Table 7: Australia confectionery market value forecast: $ million, 2018–23..................................................................15 Table 8: Australia confectionery market volume forecast: million kilograms, 2018–23..................................................16 Table 9: Chocoladefabriken Lindt & Sprungli AG: key facts..........................................................................................23 Table 10: Chocoladefabriken Lindt & Sprungli AG: key financials ($)............................................................................23 Table 11: Chocoladefabriken Lindt & Sprungli AG: key financials (CHF)......................................................................24 Table 12: Chocoladefabriken Lindt & Sprungli AG: key financial ratios.........................................................................24 Table 13: Mars, Incorporated: key facts.........................................................................................................................26 Table 14: Mondelez International, Inc.: key facts...........................................................................................................28 Table 15: Mondelez International, Inc.: key financials ($).............................................................................................. 30 Table 16: Mondelez International, Inc.: key financial ratios...........................................................................................30 Table 17: Nestle SA: key facts....................................................................................................................................... 32 Table 18: Nestle SA: key financials ($).......................................................................................................................... 33 Table 19: Nestle SA: key financials (CHF).....................................................................................................................33 Table 20: Nestle SA: key financial ratios....................................................................................................................... 34 Table 21: Australia size of population (million), 2014–18...............................................................................................36 Table 22: Australia gdp (constant 2005 prices, $ billion), 2014–18...............................................................................36 Table 23: Australia gdp (current prices, $ billion), 2014–18...........................................................................................36 Table 24: Australia inflation, 2014–18............................................................................................................................37 Table 25: Australia consumer price index (absolute), 2014–18.....................................................................................37 Table 26: Australia exchange rate, 2014–18................................................................................................................. 37

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LIST OF FIGURES Figure 1: Australia confectionery market value: $ million, 2014–18................................................................................9 Figure 2: Australia confectionery market volume: million kilograms, 2014–18..............................................................10 Figure 3: Australia confectionery market category segmentation: % share, by value, 2018.........................................11 Figure 4: Australia confectionery market geography segmentation: % share, by value, 2018......................................12 Figure 5: Australia confectionery market share: % share, by value, 2018.....................................................................13 Figure 6: Australia confectionery market distribution: % share, by value, 2018............................................................14 Figure 7: Australia confectionery market value forecast: $ million, 2018–23.................................................................15 Figure 8: Australia confectionery market volume forecast: million kilograms, 2018–23................................................16 Figure 9: Forces driving competition in the confectionery market in Australia, 2018.....................................................17 Figure 10: Drivers of buyer power in the confectionery market in Australia, 2018........................................................18 Figure 11: Drivers of supplier power in the confectionery market in Australia, 2018.....................................................19 Figure 12: Factors influencing the likelihood of new entrants in the confectionery market in Australia, 2018...............20 Figure 13: Factors influencing the threat of substitutes in the confectionery market in Australia, 2018........................21 Figure 14: Drivers of degree of rivalry in the confectionery market in Australia, 2018..................................................22 Figure 15: Chocoladefabriken Lindt & Sprungli AG: revenues & profitability.................................................................24 Figure 16: Chocoladefabriken Lindt & Sprungli AG: assets & liabilities.........................................................................25 Figure 17: Mondelez International, Inc.: revenues & profitability...................................................................................30 Figure 18: Mondelez International, Inc.: assets & liabilities...........................................................................................31 Figure 19: Nestle SA: revenues & profitability............................................................................................................... 34 Figure 20: Nestle SA: assets & liabilities....................................................................................................................... 35

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MARKET OVERVIEW Market definition The confectionery market consists of the retail sale of chocolate, gum and sugar confectionery products. The chocolate segment consists of all chocolate based products, including boxed chocolates, chocolate countlines, chocolate straightlines, molded bars and novelties. The gum segment consists of all bubble and chewing gum. Moreover, the sugar confectionery products consists of hard boiled sweets, mints, caramels & toffees, gums and jellies, marshmallows, fudges and medicated throat lozenges. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2018 annual average exchange rates. For the purpose of this report the global figure comprises of North America, South America, Europe, Asia-Pacific, Middle East, and South Africa. The Americas comprises Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru and the United States. North America comprises Canada, Mexico, and the United States. South America comprises Argentina, Brazil, Chile, Colombia and Peru. Europe comprises Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Turkey, Ukraine, and the United Kingdom. Scandinavia comprises Denmark, Finland, Norway, and Sweden. Asia-Pacific comprises Australia, China, Japan, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Hong Kong, Taiwan, and Thailand. Middle East comprises of Saudi Arabia, Egypt, Israel and the United Arab Emirates.

Market analysis The Australian confectionery market recorded moderate growth during the review period (2014-2018). The growth of the market is expected to accelerate over the forecast period (2018-2023). High brand loyalty and premiumization, combined with aggressive marketing strategies, have contributed to market growth. Moreover, rising awareness of health and nutrition is influencing consumption choices in the Australian confectionery market. Therefore, sugar-free innovations, dark chocolate product line extensions and innovative packaging are attracting consumers. The young, particularly students, will drive value growth in the confectionery market through greater consumption. The Australian confectionery market had total revenues of $3,450.8m in 2018, representing a compound annual growth rate (CAGR) of 3.2% between 2014 and 2018. In comparison, the Japanese and Chinese markets grew with CAGRs of 1.4% and 6.7% respectively, over the same period, to reach respective values of $9,505.2m and $17,859.1m in 2018. Market consumption volume increased with a CAGR of 2.1% between 2014 and 2018, to reach a total of 224.0 million kilograms in 2018. The market's volume is expected to rise to 247.4 million kilograms by the end of 2023, representing a CAGR of 2.0% for the 2018-2023 period. Chocolate sales accounted for the highest value in the Australian confectionery market in 2018, with total sales of $2,429.8m, equivalent to 70.4% of the market's overall value. In comparison, sales of sugar confectionery reached a value of $758.5m in 2018, equating to 22.0% of the market total.

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The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.9% for the five-year period 2018 - 2023, which is ex...