Consumer demand for healthier food options now extends to the confectionery aisle according to a new report.
Chocolate is the fastest-growing confectionery category and within that category, premium dark chocolate is driving the most growth, according to research from Reportstack.
In the gum category, sugar-free innovations are likewise driving the most value growth, according to Reportstack's report, Market Focus: Trends and Developments in the Confectionery Sector in Australia.
Reportstack points to the ageing population, and the greater emphasis older Australians place on their health, as driving the trend.
And private label products are not finding as much traction in these healthier areas, according to the research firm.
It found that while private label products have high penetration in sugar confectionery, they had less market sway in the chocolate and gum categories.
Reportstack also found that gum and sugar-based confectionery categories were only growing slowly, due to health concerns, and it predicts demand will continue to decrease in these categories.
“Though there is an increase in the category value in local currency, due to currency devaluation, categories are expected to show lower growth rates during 2012-2017 compared to growth in 2007-2012, in US dollar terms,” the research firm said.
Ethical consumerism, trust, and product quality were also key issues that will create increased demand for confectionery, according to Reportstack.
“Consumers tend to associate natural, organic sustainable production methods with quality and are now more conscious about where their chocolate (cocoa) is sourced from,” the research firm said.
Growth in gum and sugar-based confectionery is slowing in favour of healthier options like dark chocolate.
