Sausage Production in Australia Industry Market Research Report Now Available from IBISWorld

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Trends towards sustainable farming, premiumisation in consumer tastes and health consciousness are changing the ways Australians shop and eat. For this reason, industry research firm IBISWorld has added a report on the Sausage Production industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Health consciousness and consumer premiumisation make room for specialty sausage makers.

The Sausage Production industry in Australia has seen better times. Growing awareness of health and nutrition has led consumer choices away from high-fat foods, such as sausages and related small goods. IBISWorld industry analyst Naren Sivasailam states “producers have been plagued with falling profitability, volatile commodity inputs and anaemic consumer sentiment.” Offsetting these factors has been a growing appetite for high-end and specialised products. This trend of premiumisation has resulted in an increased demand for high-margin gourmet and specialty sausages. Producers have also responded to industry threats by being innovative with their product development. Growing areas include low-fat products with convenience packaging and varied consumption options.

The future of the Sausage Production industry is expected to be peppered with opportunity. Despite the decline in consumption of red meat and an aversion to fatty foods, consumers have chosen quality over quantity. This is expected to bode well for the specialty and gourmet segments. According to Sivasailam, “the entry of supermarket branded products has reduced the price differential in the gourmet segment from both major branded producers and smaller producers, such as butchers.” Another trend expected to build in the next five years is the growing importance of ethical and sustainable meat production. This has resulted in greater use of free-range and organic pork, lamb and beef sausages. In the five years through 2012-13, industry revenue is expected to grow by a compound annual rate of 1.3% to total $488.4 million. This includes a forecast decline of 3.2% in 2012-13.

The industry has a high level of market share concentration and this has increased over the past five years. Considerable economies of scale exist, especially in the production of fresh sausages. Operators have minimised their cost structures through acquisition and by centralising production. At a regional level and within speciality markets there is also a high level of market share concentration. Industry operators compete based on the style of sausage manufactured and the ability to fill large contracts cheaply. The major players in the industry are Food Investments Pty Limited and Australian Consolidated Food Investments Pty Limited. For more information, visit IBISWorld’s Sausage Production report in Australia industry page.

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IBISWorld Industry Report Key Topics

This industry includes the production of sausages made from a single type or a combination of meats encased in a skin.

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 or call (03) 9655 3886.

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Gavin Smith
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