Confectionary Industry in Australia

Confectionary Industry in Australia

Introduction
Confectionary industry is not a luxury industry and neither qualifies as the necessity good
producing industry. It has a favorable preference from people of different income and age group.
The subject of narration in this particular write up is based on the examination of chocolate and
confectionary in Australia. This work will be carried out with the help of the information
gathered from Marketline advantage and IBIS world. The public is claiming the bonus items
being moved towards the high end market. The bakery oriented industry comprises, creation of
confectionary, items inspired from chocolates (sweet or otherwise). The list of items includes
chocolate, cocoa, and various other edible items to satisfy the sweet tooth of the customers. The
market line advantage shows a good amount of growth of Australia’s confectionary market by
3.7% in 2018. This report will consist of the market segmentation of Australian chocolate and
confectionary. It has been found that Mondelez International Inc is the best when it comes to the
subject of confectionary in Australia. Discussions will be held in this article regarding the
booming of the industry in today’s world!
Macro environmental analysis
Macro environmental analysis analyzes politically, economically, socially, technologically,
environmentally also legally. Macro environmental details assist in examining the place held in
the market and the state of the industry. With the previous results in stock, the producers in the
confectionary industry, go forth with the decision making process regarding the future produce.
Political factor- In the Australian market the industry rendering to confectionary needs to look
after the supply and price strategy to keep up the standards in the business. The variation in the
various taxes such as value added tax by the government of the products helps in reducing the
sale of the items in the whooping industry (Moorhead, 2016).
Economic factor- the income of the industry has fallen over the past five years, considered to
make a comeback in the ongoing year. Consciousness regarding health in public demands in
purchasing items that are low in fat! The demand for fruit and nut based meal is on a high. To
stay in business industries have started developing such produce.

Social- the industry has always tried to keep up with the choices that are popular with the
masses. The pricing, substitute products available affects the demand of the products. Social
factors calls for the meeting up with the demand of the customers.
Technological- technology plays a part in the demand, production and supply of the
confectionary. In Australia the speed of technological advancement and work is quite slow. This
needs to be upgraded. Machines that are recently introduced in the industry can be opted for. The
resources already at one’s disposal can be made use of (Berg, 2016).
Environmental factors- this looks into the environmental side of the production. The bio
degradable products can be used as coverings of the products. The manufacturing process can be
made environment friendly. Emissions of odors and various other stuffs can be handled well.
Legal- this includes the regulations by which the producers are bound and these need to be
followed by the manufacturing industry. This also ensures customer satisfaction
Market Segmentation
Market segmentation is an important step in marketing. As the population of a place is made up
of much type of people it is important that we are dividing the consumers so that the target
segmentation could be identified. There are several products that are applicable to all the
segmentations while some are targeted towards one segment. Without segmentation, it is not
possible to place the product in the marker amidst the consumers.
Hence, we are going to understand the market segmentation of the Australia Confectionary.
70.4% of the total market share of the confectionary industry is chocolate while the other 22% is
occupied by the sugar segment.
 As far as the brands are concerned there are several companies that are functioning. The
number of companies functioning is not large if the small and medium scales are
eliminated. The well know names are:
 Mondelez International, Inc
 Nestle