Revenue soars as consumers increasingly demand healthy snacks
Melbourne, Australia (PRWEB) April 05, 2014
The Health Snack Food Production industry is fit and well. Over the five years through 2013-14, industry revenue is forecast to grow at an annualised 7.3%. According to IBISWorld industry analyst Andrei Ivanov, “This growth is backed by rising discretionary incomes and growing consumer health consciousness”. Healthy snacks are not a new invention. Industry growth is not attributed to the introduction of a revolutionary product, but rather an increased uptake of healthy diets among consumers. Growing participation in sport, concerns surrounding obesity levels in Australia and time-constrained lifestyles are shining a light on the importance of healthy eating.
The Health Snack Food Production industry is highly subjective in terms of the products it includes. Because there is no universally accepted definition of what constitutes a healthy snack food, consumers are at risk of being misled. A similar issue is prevalent in organic foods and it has its spill-over effects on the industry. A key success factor for industry participants is their ability to market themselves and gain shelf space in supermarkets. Industry products are already saturated and, with the exception of protein and muesli bars, are mostly low value added products. “Finding new ways to differentiate themselves remains a challenge for companies operating in the industry”, says Ivanov. The industry has a low level of concentration despite the presence of three major players: Select Harvests Limited, Nestle Australia Ltd and Carman's Fine Foods Pty Ltd.
The outlook for the industry remains good. The recent success of the industry is attracting new players and this will drive up competition over the next five years. Imports are expected to increase. In addition, supermarket private labels present a threat to profitability. IBISWorld expects there to be a push for stricter regulations in the industry regarding labelling and nutrition information. Overall, the industry is expected to enter a mature stage of its life cycle in the next five years.
For more information, visit IBISWorld’s Health Snack Food Production report in Australia industry page.
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IBISWorld Industry Report Key Topics
Companies in this industry produce healthy snack foods that have high nutritional value, including protein bars. The industry excludes supplement foods and low-fat, low-sugar variations of traditional snacks.
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
About IBISWorld Inc.
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