Industry Profile: Gum Industry
Tags
Market Type
Chewing Gum industry is a highly contestable oligopoly
Companies Wrigley and Cadbury account for 60% of the market share, with
other companies such as Lotte, Perfetti Van Melle and Hershey’s following
close behind
Dominated by a few firms but have hundreds of small firms producing as well
Low barriers to entry and low sunk costs cause it to be highly contestable
Highly differentiated products:
Sugar Chewing Gum (with multiple flavours)
Sugar-Free Chewing Gum (with multiple flavours)
Anti-smoking Gum (with multiple flavours)
Biodegradable Gum (with multiple flavours)
Chewing Gum causes a direct negative consumption externality of litter on
roads and pavements
Key Market Driver - Increasing Demand for Functional Chewing Gum,
especially in youth groups
Key Market Restraint - Negative side effects such as headaches caused by
Chewing Gum
Segmentation
By Type
Sugar Chewing Gum (with multiple flavours)
Sugar-Free Chewing Gum (with multiple flavours)
Industry Profile: Gum Industry 1
Tags
Market Type
Chewing Gum industry is a highly contestable oligopoly
Companies Wrigley and Cadbury account for 60% of the market share, with
other companies such as Lotte, Perfetti Van Melle and Hershey’s following
close behind
Dominated by a few firms but have hundreds of small firms producing as well
Low barriers to entry and low sunk costs cause it to be highly contestable
Highly differentiated products:
Sugar Chewing Gum (with multiple flavours)
Sugar-Free Chewing Gum (with multiple flavours)
Anti-smoking Gum (with multiple flavours)
Biodegradable Gum (with multiple flavours)
Chewing Gum causes a direct negative consumption externality of litter on
roads and pavements
Key Market Driver - Increasing Demand for Functional Chewing Gum,
especially in youth groups
Key Market Restraint - Negative side effects such as headaches caused by
Chewing Gum
Segmentation
By Type
Sugar Chewing Gum (with multiple flavours)
Sugar-Free Chewing Gum (with multiple flavours)
Industry Profile: Gum Industry 1
