Growing demand for healthy fast food has created new opportunities in the Fast Food industry
Melbourne, Australia (PRWEB) July 31, 2012
Once dominated by hamburgers and fries, the Fast Food industry has undergone a health kick over the past five years. According to IBISWorld industry analyst Steven Connell, ‘the shift towards healthy eating has been driven by a rapid increase in consumer awareness about the nutritional content of fast food, a conscious effort by consumers to eat a balanced diet and an influx of healthier options by the industry's heavyweights”. Combined, these factors are estimated to lead to a 3.7% per annum rise in industry revenue over the five years through 2012-13. However, intense competition within the industry and the deteriorating economic climate has constrained industry performance. Trends in real household disposable income, the age distribution of the population, competition from convenience stores and supermarkets and growth in the variety of easy-to-prepare meals have also affected consumer demand for fast food.
Fast Food industry revenue is expected to increase by 2.6% in 2012-13, to reach $15.8 billion. However, a decline in consumer sentiment could have a mixed effect on the industry. On the one hand, consumers will seek value for money in fast-food meal purchases and some may trade down food purchases in favour of lower priced meal options. However, many consumers view fast food as an affordable luxury, as indicated by the industry's strong revenue growth during the height of the global economic downturn. Connell adds, “retailers will respond by placing greater focus on their food offers”. Sales growth will also be spurred by the rising popularity of 'iFast', a fast-food application for iPhone, iPod and iPad users. This is expected to revolutionise the industry and boost the convenience with which fast food can be ordered. Market share concentration in the Fast Food industry is high and fast-food operators have been subject to increasing levels of concentration over the past five years. Major players in the industry include McDonald's Australia Holdings Limited, Yum! Restaurants Australia Pty Limited, Competitive Foods Australia Pty Ltd and Domino's Pizza Enterprises Limited.
Consumer demand for value, convenience and nutritious food is expected to drive Fast Food industry performance over the five years through 2017-18. Despite continued competition from supermarkets and convenience stores, industry sales will benefit from an increased focus on healthy eating. Fast-food retailers will focus on providing consumers with an evolving and adaptable product selection. This is expected to result in increased revenue over the next five years. Increases in real household disposable income and changes in the age distribution of the population are also expected to drive demand for fast food.
For more information, visit IBISWorld’s Fast Food report in Australia industry page.
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IBISWorld industry Report Key Topics
Industry operators sell a broad range of fast food including burgers, chips and sandwiches. Produce used in the production of fast food is often purchased from wholesalers in its raw state before being transformed into fast food at store premises.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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