Macro-Environmental Analysis of Sugar Confectionery Industry in Australia

Running head: SUGAR CONFECTIONARY
In the first part, I am going to discuss the macro-environmental analysis of the sugar
confectionery industry of Australia.
Macro Environmental Analysis
Economic
The confectionery industry of Australia has faced much problem in the past five years
since there has been a change in the customer need. Obesity has been a significant problem for
the people of Australia (Ibisworld.com.au. 2019). Due to this, the customers are more intended
towards healthy foods. The sugar tax will be implemented due to the increased use of sugar in
the confectionery industry of Australia. Implementation of the sugar tax and the change in the
customer need can pose a significant threat to the revenue of the confectionery industry of
Australia.
Political and legal
The sugar consumption of the population of Australia is more than the threshold limit,
which has been provided by WHO (Store.marketline.com 2019). This has led to a significant
concern among the customers since many people from Australia are suffering from the problem
of obesity. There has been a lot of legal laws in the country which has questioned the
confectionery industry of hiding the nutritional value of their products. The confectionary
industry needs to come up with various new ideas which will be helping them to cope up with
these laws. Customers have been more concerned with their health in recent times, so, the
confectionary industry must produce healthy substitutes which will be helping in customer
retention.
Sociocultural
Presence of many substitute products is a significant threat to the confectionary industry
since most of the customers are going for healthy products. The industry must focus on

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developing some healthy products for its customers. The industry must also bring some
technological advancements in its industry to train its staffs. There are various laws regarding the
wages and rights of the employee which must be followed by the industry (Azaïs-Braesco 2017).
From the beginning, the consumers have been inclined to confectionary products which shows
the present market share of the sugar industry.
Environmental factors
Cultivation of sugar takes up much area which leads to the loss of natural habitat of a
place. The massive intake of sugar by the confectionery industry which is likely to increase in
the future might be a concerning factor for the industry. The sugar confectionery industry must
also abide by the various environmental laws of the country. The environmental regulation
includes odours, usage of water, generation of waste and treating the waste properly (Brand-
Miller and Barclay 2017). The industry needs to follow these environmental laws so that it does
not face any legal issues from the government.
In the second part, I am going to discuss the market segmentation of the confectionery industry.
Segmentation and targeting
Retailers
Retailers own the maximum market share of the confectionery industry. The retailers
include supermarkets, grocery stores, confectionery stores and the various petrol stations. These
stores mainly sell different confectionary products as well as various chocolates to the customers.
In five years, the market share of the retail segment has increased (Edwards 2018).