Chewing gum industry overview
Chewing gum industry
overview By Andy Pharoah, president, International Chewing Gum Association
For thousands of years, enjoyment of chewing gum has been a part of daily life for people across cultures – from the Ancient Greeks to the Aztecs. Chewing gum, as we know and love it today, was born in 19th century America and, since its beginning as a niche product, has spurred the growth of a truly global industry that employs thousands and brings daily delight to many millions of consumers throughout the world. The history of a unified voice for the chewing
gum industry is a bit more recent. Born out of a 2005 merger between the European Association of the Chewing Gum Industry (EACGI) and the US National Association of Chewing Gum Manufacturers (NACGM), the International Chewing Gum Association (ICGA) has become the leading global voice of the chewing gum industry. Our core belief is that ‘gum is good’ and our objective is that every day more and more people are able to enjoy the benefits that gum brings. As ICGA members, we work in a great category – but one that also brings unique opportunities and challenges.
The state of the industry
Mirroring macroeconomic trends, the global chewing gum category in recent years has really been a tale of two worlds – with the developed markets of Western Europe and North America on the one hand, and the emerging markets of Eastern Europe, Asia, the Middle East, Africa and Latin America on the other. In Europe and North America, the gum category has been under pressure as consumers’ discretionary spending has tightened and changes in the retail environment have required fresh thinking about the best ways to get our products in front of consumers. Consumers are making fewer trips to the store, not visiting the convenience store or the gas station forecourt, and sticking more closely to what’s on their shopping lists – a
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real challenge to impulse driven purchases like gum. At the same time, competition for space at the front end of the store is becoming fiercer – with other food and beverage categories, as well as personal care, financial services and entertainment products all vying for space. In emerging markets, the past few years have brought steady – and at times outstanding – growth for the chewing gum category, as the middle classes of these societies grow, the retail trade develops, and discretionary income becomes more available. Here, growing the category focuses mainly on getting our products in front of consumers – recognising the unique and differing mix of traditional and modern trade in each market, and navigating the route to market for each. And in some cases, where there is no established culture of chewing gum, it requires us to educate on the reasons to chew and provide consumers with products at an accessible price point. In developed and emerging markets alike, ICGA is focused on highlighting the unique benefits of chewing gum while proactively addressing any barriers that could limit its social acceptability.
Driving industry standards for quality and food safety
The continued success of the chewing gum category hinges on a collective industry commitment to safety and quality, and this has always been the top priority for ICGA. As a qualification for membership, all members commit to manufacturing chewing gum to high standards of safety and quality. ICGA, however, is more than a “quality mark”. The Association also functions as an important forum for debate, and we take a proactive role in engaging policymakers to establish industry standards for the safety of all our ingredients, while at the same time working toward harmonization of these standards worldwide.
Promoting unique health and wellness benefits
As the recent decade has seen a dramatic rise in obesity levels and related health concerns, the global food industry has felt increasing pressure from policymakers, advocacy groups and consumers to play a leadership role in identifying and implementing effective solutions. As a piece of sugar-free gum typically contains only 5 calories or fewer, we know that chewing gum can
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