Snack Food Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Rising commodity prices, turbulent economic conditions and rapidly changing consumer trends have restricted the true potential of Australia’s snack food manufacturers. For this reason, industry research firm IBISWorld has updated its report on the Snack Food Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The nutritious snacks segment is a beacon of hope for the industry

Volatile commodity prices, changing consumer trends and a saturated market are just some of the characteristics that define the Snack Food Manufacturing industry. While the industry has shown glimpses of promise in the five years through 2012-13, rising commodity prices, turbulent economic conditions and rapidly changing consumer trends have restricted its true potential. In the five years leading up to 2012-13, industry revenue is expected to increase by annualised 1.5% to total $2.93 billion. In 2012-13, revenue is expected to decrease by 0.8%. According to IBISWorld Industry analyst Naren Sivasailam, ‘the industry's major players have been faced with lower profit margins and stagnating domestic demand, particularly in the salty snacks segment, which has historically been the most profitable’. Changing consumer tastes and lifestyles have elevated health and wellbeing to become the most important factor in driving consumption choices. This has warranted clever innovation and new product introductions in an attempt to stimulate sales growth in a mature and stagnant market.

The prospects of the industry, modest as they may be, do present some niche growth opportunities. ‘The nutritious snacks segment represents a beacon of hope for the industry as consumers become increasingly time poor and health conscious’, says Sivasailam. Strong brand loyalty, new product innovations and aggressive marketing strategies will help the industry ride the current wave of stagnation and economic turbulence with relative ease. IBISWorld expects that the industry will grow over the next five years to 2017-18.

The Snack Food Manufacturing industry in Australia has a medium level of market share concentration. The product lines of larger players such as Frito-Lay, Arnott's and Burns Philp tend to comprise mid- to low-value, high-volume products. Smaller firms tend to focus on niche markets supplying speciality products that are of high value but have shorter production runs and hence lower volumes. Despite the presence of smaller firms, snack food manufacturing is moving towards large-scale, concentrated production and consequently has significantly fewer firms than a decade ago. Today, fewer commercial manufacturers are also serving wider geographic markets. Improvements in transportation methods, and the development of extended shelf-life products, are enabling the industry's larger manufacturers to reduce costs by centralising production facilities. The industry’s two largest players are Frito-Lay Australia, and Snack Foods.

For more information, visit IBISWorld’s Snack Food Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry are mainly engaged in manufacturing snack food products such as potato crisps, corn chips, savoury snacks, nuts, pretzels and other similar snacks. The manufacturing process includes buying raw materials such as milled corn, wheat, potatoes, food extracts, flavourings, preservatives and sugar, for processing into finished, consumer snack foods. The finished products are then packaged and marketed to wholesalers and retailers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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 or call (03) 9655 3886.

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Gavin Smith
IBISWorld
(310) 490-5973
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