Gum
Estimated U.S. Retail Market Size
$3.2 billion Source: National Confectioners Association, based on U.S. Dept. of Commerce Report and NCA Monthly Shipment Reports |
Category Climate
Gum gets a great rating as of late. The $3.2 billion
category saw the highest manufacturer dollar sales growth rate in 2007 (4.1
percent) compared to chocolate (2.9 percent) and non-chocolate (3.8
percent), as calculated by the National Confectioners Association (NCA),
based on its monthly shipment reports and the U.S. Department of Commerce.
Sugarless gum retail sales grew by 13.5 percent last year, the NCA adds.
Mintel research shows that chewing gum and, in
particular, sugar-free gum, “is appealing to a wider range of people
than ever before, with much younger and, also, much older people reaching
for a packet of gum.”
Sugar-free gum appeals greatly to dieters, those with
diabetes and those trying to quit smoking. Promotion and advertising by
leading manufacturers has also boosted the market.
Product Innovation
Once chewed mainly for taste, gum now has a variety of
value-added benefits, some claiming to whiten teeth or improve dental
hygiene, others fortified with vitamins, and some fusing exotic flavors.
Hip names and long-lasting flavor is also “sweetening” the pot.
These gum innovations primarily concentrate on low/no/reduced sugar claims.
Gum products for kids, especially those with licensed characters or zany
“value adds” have also been popular, according to Mintel. The
chewing gum category has also seen new packaging types emerge, including a
crush-resistant tube.
Global innovation is also being watched closely.
Foreign candy flavors are being incorporated into gum. And in England,
research is underway to create a gum that is chewy but not sticky.
Consumer Preferences
Consumer research by Mintel shows that 59 percent of
adults use chewing gum or bubblegum, and 89 percent of teens and 91 percent
of children do. Respondent gum users were more likely to use regular than
sugarless products. While the usage percentages are similar for adults (59
percent sugarless vs. 62 percent regular), they are significantly higher
for children (27 percent sugarless vs. 73 percent regular). Adults chew an
average of eight pieces of gum per week, compared with 11 for teens and
four for children.
Retailing/Merchandising
Convenience stores top all others for sales of gum (22
percent share), according to Mintel. But gum is popping up in all kinds of
retail outlets, meaning mass marketers will have to get displays going that
are even more impulsive and in non-traditional areas, including near
produce, the bakery and the deli.
Outlook
Chewing gum is an exciting delivery method for
functional ingredients. New studies are underway to formulate gums with
extracts that inhibit bacteria. Market researcher Leatherhead International
predicts that the global gum market will increase by 17 percent to almost
$17 billion in the next four years.
Quick Bites
There is great
growth in gum, particularly sugarless gum.
Innovation abounds.
Children and teens are the heavy users, but adults are chewing more sugarless.
More gum is purchased at c-stores than any other channel.
Innovation abounds.
Children and teens are the heavy users, but adults are chewing more sugarless.
More gum is purchased at c-stores than any other channel.