Losing out to gummy bears and in big trouble! Chewing Gum Industry Survival Race: “Develop a Long Seller!
Will it be Lotte with "Xylitol" or Mondelez with "Chloretz" that will survive? Or will it be Ezaki Glico or Marukawa Seika?
Gum industry” continues to face difficulties
Chewing gum may have become an “old man’s snack.
Last March, when the archipelago was rejoicing over the Samurai Japan’s WBC victory, the gum industry was shaken by a decision made by Meiji, one of the largest confectionery manufacturers in Japan.
The company announced its withdrawal from the gum market by discontinuing sales of “Xirish” and “Petit Gum. Xylish” was one of the company’s signature products that had been the subject of a series of commercials featuring celebrities such as Masaharu Fukuyama and Kaela Kimura. The impact was even greater than we had imagined.
There was a reason for Meiji’s withdrawal. Sales in the gum market, which had reached 188.1 billion yen in 2004 at its peak, dropped to 71 billion yen in 2010, less than half of the previous year’s figure.
On the other hand, the gummi market, which had long lagged behind the gum market, overtook the gum market in terms of sales in 2009.
Gum is a snack that cannot be consumed completely in the mouth. Needless to say, you have to spit it out onto paper, wrap it up, and throw it away. However, due to anti-terrorism measures and other reasons, trash cans have disappeared from station platforms and from small and medium-sized parks. Another significant factor is the increase in the number of people commuting to work or school while wearing earphones. Chewing noises interrupt the sound of music and movies.
Today, the main purchasers of gum are baby boomers, and young people perceive gum as a snack that is not smart and requires a lot of time and effort to dispose of. If you want to prevent bad breath, mint tablets that dissolve in the mouth are more likely to be chosen,” said confectionery industry expert and TV personality Chihiro Matsubayashi.
In the gum industry, where one of the major players has collapsed and the industry continues to face difficulties, Lotte is continuing to struggle. The company has a variety of long-selling products, including “Ghana Milk,” “Yukimi Dakkuhu,” and “Choco Pie,” but when it was founded in 1948, its main business was the production and sale of chewing gum.
Lotte’s first long-selling product was “Green Gum,” launched in 1957. This gum, which contains chlorophyll, a deodorant and disinfectant, was popular as an “oral etiquette” product from the time it was first released. Together with the blue packaged “Cool Mint Gum” released in 1960, “Green Gum” triggered an unprecedented gum board boom. In 1983, “Black Black Gum” containing dry mint and caffeine was launched. It was a groundbreaking product that offered functionality in the fight against drowsiness,” said a reporter.
From Gum Plates to Gum Granules
Lotte, the leader in the gum market, reached a turning point in 1997. Xylitol, a sweetener that does not produce the acid that causes tooth decay, was approved as a food additive by the then Ministry of Health and Welfare.
Meiji and Lotte were the first to introduce this sweetener into their products. Makoto Sato of the Japan Chewing Gum Association said, “Lotte’s ‘xylitol’ and ‘xylitol’ are both sweetened with xylitol.
Lotte’s ‘Xylitol’ and Meiji’s ‘Xylish’ were released as gum at about the same time. Prior to that, the mainstream gum was sugar-containing chewing gum, which was considered bad for the teeth. However, with the advent of gum with xylitol, gum became rather a ‘healthy food good for teeth. With this, the trend in the gum market shifted from chewing gum to sugarless chewing gum.
From chewing gum boards to chewing gum granules. Lotte, which perfectly seized this turning point, now reigns as the absolute champion of the gum market, boasting a share of more than 60%.
On the other hand, the Japanese subsidiary of the American food manufacturer Mondelez, Mondelez Japan, achieved success by focusing on gum granules from the beginning.
In 1985, it was Mondelez that launched the world’s first stick-type individually packaged grain gum. It was sold in Japan under the name “Krolettes,” but at first it was overshadowed by the popularity of chewing gum. However, the “xylitol revolution” of the late 1990s triggered a gum boom. Mondelez did not miss it and launched “Ricardent” in 2000, which contained “CPP-ACP”, an ingredient that suppresses the onset of tooth decay and strengthens the teeth’s resistance to acid. In 2002, xylitol was introduced as a sweetener in “Clorets”. This firmly established Mondelez as the second largest gum manufacturer in Japan after Lotte” (reporter).
The gum market reached its peak in 2004, but as mentioned above, it has been in decline ever since. Economic journalist Takai Naoyuki explains, “The gum market has been in a state of decline since then.
If the gum market is to recover from this, a new long-selling product must be developed that is as innovative and health-oriented as or better than xylitol gum. It has been reported that people chew gum less frequently today, less than half as often as before World War II. Tablets that claim to prevent bad breath do not strengthen the ability to chew. It is necessary to emphasize the appeal of chewing gum as ‘healthy through chewing.
Ezaki Glico, which decided to discontinue its popular “Kiss Mint” in 2006, is now trying to survive with “POs-Ca,” a health-oriented product, as Mr. Takai said. Posca is a calcium phosphate oligosaccharide that Ezaki Glico has researched and developed, and the product, which bears its name, is said to promote remineralization and recrystallization of early cavities. In other words, the gum can cure early-stage cavities.
Ezaki Glico also offers POs-Ca F, which contains fluoride added to POs-Ca. The addition of fluoride makes it easier for calcium in saliva to reach the teeth, resulting in a higher remineralization effect. This product is so highly rated that it is sold at dental clinics.
After all, is health consciousness an absolute prerequisite for survival in the race for survival in the gum industry? No. There is a long-established company that has a unique presence by daring to keep its products that go against the times. Marukawa Seika, headquartered in Nagoya, Aichi Prefecture, is one such company.
Marukawa began manufacturing gum in 1947, and in 1959, at about the same time as Lotte’s Green Gum, Marukawa launched Marble Gum, an extremely long-selling product that is still sold as a mainstay. Since then, the company has consistently produced only Fusen gum. Currently, ‘Marble Gum’ is exported to about 20 countries, mainly in Asia, and is very popular as a representative of made-in-Japan gums,” said Matsubayashi.
(Mr. Matsubayashi, mentioned above) Whether it is the development ability to grasp the trends of the times, or the pride of a company’s original intention, the gum industry is facing a difficult situation. The race for survival in the gum industry, which is facing a difficult situation, is only getting more intense.
From the December 13-20, 2024 issue of “FRIDAY