Australian manufacturers have been busy innovating to keep the chocolate and confectionery market afloat amid tough economic times, volatile commodity prices and import competition, a report shows.
An IBISWorld report – Chocolate and Confectionery Manufacturing in Australia – said that the sector also faced pressure from the increase in health-conscious consumers who favour cereals, nuts and yoghurts over chocolate and confectionery products.
It detailed that manufacturers had been investing in product adaptions and developments to fit these trends.
“The high level of value addition during the production process has enabled the industry’s major players to maintain high profit margins and perform well despite recessive economic conditions,” Naren Sivasailam, industry analyst at IBISWorld, said.
IBISWorld said that Australia’s chocolate and confectionery sector is set to increase by 2.2% in 2011-12 and pull in A$3.09bn.