Melbourne, Australia (PRWEB) April 06, 2012
Australia's sweet tooth has kept the Ice Cream Manufacturing industry in Australia afloat despite rising input prices, changing consumer dietary trends and a slowing economy. There have been dramatic increases in milk and sugar prices in the past five years as well as a fall in production volumes. However, this was partly offset by an increase in average selling prices. The advent and subsequent growth of the health-conscious consumer has required producers to be innovative with their product lines and adapt them to changing consumer trends. According to IBISWorld industry analyst Naren Sivasailam, “in the five years through 2011-12, industry revenue is estimated to have increased at an annualised 2.5% to total $496.8 million, after a slight 1.3% decline during 2011-12.”
The industry's major players such as Nestle and Unilever are extremely well entrenched in the domestic market and their brands command enviable levels of loyalty. Consequently, the major players have been able to pass on cost increases down the supply chain during times of dramatic input price volatility, such as during 2007-08. As well as a stagnant domestic market, industry exports have fallen over the past five years due to the appreciation of the Australian dollar, weak global demand and transport limitations imposed by the perishable nature of the product. Import growth has been positive in the last three years owing to the volatility in domestic demand and supply conditions that forced producers to resort to overseas markets to source their products.
Over the next five years, IBISWorld expects stability in input prices and a move toward the production of high-margin, premium products that address the trends of health and convenience. Future growth is also tied to innovation and new product development. “The emphasis on health and nutrition is expected to continue to drive new product choices with an increase in organic, soy, gluten-free and low-fat ice creams,” Sivasailam adds. As global economic conditions improve, strong export growth, particularly within Asian markets, is also expected to drive general industry growth.
The Ice Cream Manufacturing industry in Australia is characterised by a high level of market share concentration. Although the industry has several small-to-medium operators, the majority of its revenue is generated by the major players: Nestle and Unilever Australia. In June 2009, Fonterra exited the industry and decreased industry concentration. Concentration also varies between product segments. Take-home tubs and multi-pack production tends to be heavily dominated by a few foreign-owned firms, such as Nestle, and account for majority of domestic production. Premium and niche ice creams such as gelato, however, are more fragmented and therefore less concentrated.
For more information, visit IBISWorld’s Ice Cream Manufacturing in Australia industry page.
This industry consists of establishments that manufacture ice cream or frozen confectionery.
IBISWorld Industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au