Future prospects for the Chewing Gum industry are decidedly sweet
Future prospects for the Chewing Gum Production industry are decidedly sweet. According to IBISWorld, the nation’s largest publisher of industry research, through 2016, the anticipated economic recovery, renewed consumer spending and confidence, and innovative product introductions will drive industry growth. The trend toward premium products is also expected to gain momentum over the next five years as consumers seek functional chewing gum products that address health and nutritional concerns. For this reason, industry research firm IBISWorld, has added a report on the US Chewing Gum Production Industry to its growing Food Production report collection in the United States.
According to IBISWorld, while chewing gum sales remained strong against a crippling recession, the resurgence in consumer spending and confidence will shift demand toward premium products, like sugarless gum. In addition new products that highlight the health benefits of chewing gum, like dental and oral hygiene, are expected to continue debuting over the year.
The US Chewing Gum Industry has a high level of market concentration, which is primarily a result of an increase in acquisitions, along with organic growth for a majority of major players engendered by continued product innovation, strong brand loyalty and aggressive marketing. Major chewing gum players include Mars Inc, The Hershey Company and Kraft Foods. Mars Inc, which owns The Wrigley Company, produce some of the world's most recognizable chewing gum brand names such as Juicy Fruit, Big Red, Wrigley's Spearmint, Eclipse, Airwaves, Extra and Orbit. The Wrigley Company is embracing packaging improvements that promote convenience and eco-friendly attributes as they target the adult market. The Hershey Company which owns Bubble Yum began as the Lancaster Caramel Company, founded in Pennsylvania during the late 19th century. Cadbury PLC, which was acquired by Kraft Foods in July 2010, houses the Dentyne and Bubbilicious brands.
According to IBISWorld analyst, Mary Nanfelt, potentially threatening industry growth, however, is the increased availability of healthy alternatives, such as substitute snack foods, fruit and nut bars and cereals. “In response, producers are expected to use higher quantities of sugar-free alternatives in their product mix to mitigate the unhealthy perception of their products,” says Nanfelt. As manufacturers adjust their product offerings to satisfy consumer tastes, revenue is projected to increase. Constant new product introductions and the ability to respond to changes in consumer trends have caused this segment to become significantly more lucrative,” says Nanfelt.
For more information, download the full report from IBISWorld on the Chewing Gum Industry
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