Global Industry Analysts has released a new report on the gums market, which it predicts will reach $23 billion by 2017. This growth will be driven by the growing demand for medicated and sugar free gum products, particularly from the growing tribe of health conscious consumers. In addition, factors such as product innovations, enhanced taste and flavors, efficient distribution and huge product promotion campaigns are expected to provide a strong platform for augmenting gums demand. Further, development of value-added gum varieties such as nutraceutical gum and biodegradable gum with health and environmental benefits expand traditional market frontiers, enabling sound growth in the foreseeable future.
The highly concentrated and relatively mature gum market is undergoing a major transition from a pleasurable product to a medicated and value-added product. Manufacturers are aggressively competing with each other to increase their market presence. Besides, companies are constantly introducing innovative products to meet the ever-changing needs of consumers. The gum industry witnessed a low phase until the emergence of sugarless gum products, which played a major role in the resurgence of the chewing gum market. Over the years, the gum industry traditionally inclined towards the children and youth population, witnessed a demographic shift in favor of adult consumers. Swiftly aging population, higher buying propensity and sluggish growth in kids’ category is prompting the development of more adult-specific products such as functional and medicated gums.
Gum makers developed a suite of packaging forms to meet the needs of all groups, such as flashy packs for kids, stylish packaging for Gen-X, and blister packs for health conscious consumers. Innovative packaging plays an imperative role in the success of the product. Novel and attractive packaging makes the shelf presence of product distinctive from similar bulk gum products. Gum sales are largely dependent on impulse behavior, and manufacturers encourage sales by merchandizing their products through all the possible conventional and non-conventional channels. These products are usually placed close to checkout counters, cash registers, or at any front-end places in department stores, super markets, retail and specialty stores in order to attract the attention of customers during the final checkout process. In addition, gums are also offered at high-traffic points such as floor displays, endcaps, and gondolas to satisfy demand of customers even on the move.
Gums market is highly concentrated and fiercely competitive in structure and alignment. Continuous product innovation is the only key to improve sales opportunities and to remain competitive in the market. An important development in the global gum market in recent times is the new and transformed functionality of gum. As against its previous purpose of merely being a pastime and a pleasure giving product, gum is now acquiring a new role and emerging as a product that provides various functional and value added benefits. Gum manufacturers are revamping bubble gums to breathe new life into the segment and give a new look, which appeals to kids and youth population. From delivering targeted medications to improving memory power, gum is widely being touted as a medium for delivering various medicinal properties to the human body.
Similarly, in response to the growing health concerns worldwide particularly among the adult population, novel gum products are emerging to offer various dental and health benefits such as curing ear infections, soothing ulcers, fighting cavities, in addition to whitening and strengthening teeth. As consumers are becoming more health and calorie conscious, surge in sugarless and medicated gums are expected to continue in future. Further, strong flavored value-added pellet gums are likely to add fuel to the chewing gum growth. Nutraceutical gum is poised to play a major role in expanding the worldwide gum market. Manufacturers are developing gums incorporated with several health and dental benefits. The market is also abuzz about development of an environment friendly, biodegradable gum, which does not compromise on the basic taste, texture and flavor.
Global Gums Market Driven by Nutraceutical Applications
Published March 5, 2012