Competition from supermarkets is eating into industry revenue
London, United Kingdom (PRWEB) October 27, 2012
The major factor constraining growth in the Fruit & Vegetable Retailers industry over the past five years has been fierce competition from supermarkets. According to IBISWorld industry analyst Suzannah Rowley, “supermarkets increased their share of the fruit and vegetable retailing market over this time and are expected to account for nearly 90% of the market in 2012-13”. This includes companies such as Tesco, Sainsbury's, Asda and Waitrose. Further to this, the adverse influence of the global economic downturn on overall consumer spending and sentiment also lowered growth for fruit and vegetable retailers over the past five years. Although food is a necessity, the recession caused consumers to switch to lower priced products. These factors were offset to some extent by the rise in health consciousness over the past few years due to growing concern about global obesity levels especially in children. This encouraged people to adopt healthier eating habits by consuming the recommended five or more daily servings of fruit and vegetables. In turn, this helped support demand for fresh produce in the United Kingdom. However, it was not enough to prevent the 4.3% annualised decline in revenue over the five years through 2012-13.
Rowley adds, “looking ahead, the rising market share and power of supermarkets will continue to plague specialised fruit and vegetable retailers”. Rising health consciousness, income levels, consumer confidence and changes in fruit and vegetable prices will also shape industry performance over the next five years. Overall, IBISWorld forecasts that industry revenue will continue to decline over the next five years to 2017-18.
IBISWorld estimates that the Fruit & Vegetable Retailers industry has a low level of market share concentration, with the four largest companies accounting for less than 10% of industry revenue. Over the five years through 2012-13, company numbers have fallen by an annualised 5.3% mainly due to fierce competition from supermarkets.
For more information on the Fruit & Vegetable Retailers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes companies that specialise in the sale of fresh fruit and vegetables or prepared and preserved fruit and vegetables.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.