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.
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 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, The Hershey Company and Kraft Foods. Mars, which owns The Wrigley Company, produce some of the world’s most recognisable 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, 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.
Source: IBISWorld
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