Food Bites
Chewing and Bubble Gum
Snacks and Confectionery
Annual Market Quantification
March 2011
Market Context
The difference between chewing and bubble gum is in the gum base used to manufacture
them. The gum base for bubble gum is firmer and more elastic to allow the user to blow
gum bubbles. Chewing gum on the other hand is made of a more rigid base that does not
allow for bubble blowing.
Chewing gum has been proven to help freshen breath, relieve stress, ease boredom,
increase concentration as well as aid in weight loss management; among other things.
Consumption of chewing and bubble gum has been on the increase in the South African
market over the past decade, with both these markets showing signs of maturity in recent
years.
Regional distribution for chewing and bubblegum follows a similar profile, with above 70%
of the volumes consumed in the high population density areas of Gauteng, KwaZulu-Natal
and Western Cape. Channel distribution however differs by category. Chewing gum
distribution is concentrated to the general retail channel which contributes an almost 50%
share to market volume. Bubble gum channeling on the other hand is dominated by
independent wholesale which controls over one third of the market.
2
2010 Category
Shares
3
Volatile history for
gums volume
4
Chewing gum –
volume down, value up
• Chewing gum contributed 11.2% to gum volumes and 23.0% to the category’s value in
2010. Although the product experienced volume decline of 4.2%; the greatest decline
since 2000; it was more valuable in rand terms because of the price increase seen
during the base year.
• Future volumes for chewing gum are expected to remain stable with a marginal
increase of 1.4% expected in 2011. Expected growth in this category is attributed to
new flavour introductions and packaging re-invention seen in the last quarter of 2010
which are expected to attract new customers to the category.
• The metropolitan areas of Gauteng, KwaZulu-Natal and Western Cape continue to
dominate distribution for chewing gum with a combined 71.9% share of the category’s
output. General retail continues to be the most popular channel for chewing gum with
48.1% of the volumes consumed through this channel.
5
Bubble gum
volumes decline
• 2010 saw a 3.2% decline in the volume of bubble gum consumed in South Africa.
The decline seen in the bubble gum market was attributed to the longer school
holidays as a result of the FIFA Soccer World Cup, which resulted in reduced sales
from school going children; the prime target market for bubble gums. Other factors
leading to this decline include declines in consumer spending which resulted in less
pocket money for school children as well as consumers focus on essential food stuff.
• While local production of bubblegum declined in 2010, import volumes increased
significantly. Some local manufacturers of bubble gum mentioned that cheaper
imports were posing a threat to them as retailers and wholesalers alike are price
driven and tend to prefer to stock cheaper brands.
• The future for bubble gums is positive, with 4.3% growth forecast for 2011 with
bubblegum expected to recover all lost volumes.
6
Food Bites
Chewing and
Bubble Gum
For more information,
contact:
Jan Wegelin
Research Manager
Tel: (011) 615 7000
Mobile: 082 938 0744
www.bmi.co.za