Sweet news for Australia's $3 billion chocolate market

09 January 2019 Consultancy.com.au 2 min. read
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The Australian chocolate market is expected to reach $4.3 billion by 2023, according to a new TechSci Research report. The market hit $2.9 billion last year, the report states.

“Over the coming years, the chocolate market in Australia is anticipated to grow at a healthy rate, backed by a rising health-conscious population, growing demand for organic chocolates, rapid expansion of the e-commerce industry, and the launch of innovative products by manufacturers,” said Karan Chechi, research director at TechSci Research, a research and consultancy company.

Rising premiumisation – the pursuit of mass market appeal with luxury-tinged products – has seen a surge in the number of exclusive chocolate stores in the country. Additionally, there has been an increase of healthy, often organic, products geared toward younger generations. Both are factors that account for much of the chocolate market’s forecasted growth. Convenience, too, plays a role – the ease with which a box of chocolates can be gifted makes the confection more desirable among Australians.

Sweet news for Australia's $3 billion chocolate market

Chocolate manufacturers are also focusing more attention on bringing products to market in a larger variety of flavours, such as Mondelez’s Cadbury Dairy Milk with Oreo in mint and strawberry. Increase in consumer choice provides “lucrative opportunities to companies operating in the Australian chocolate market during the forecast period,” Chechi said.

Because of their population sizes and the impact of cities such as Sydney, Newcastle, and Wollongong, the states of Victoria and New South Wales have the most effect on the chocolate industry.

To calculate the Australian chocolate market size, TechSci Research used a bottom-up approach, recording and subsequently forecasting manufacturers’ sales data. In its entirety, the report provides cutting-edge market intelligence to guide and improve investments.

According to a study by KPMG, the Swiss are the largest chocolate consumers globally, with an average of 12kg per person per year, which equates to an average of 1kg of chocolate per month. Swiss-nationals are followed by the Brits (UK & Ireland), Austrians, and Belgians.