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

The Snack Food Manufacturing industry has introduced new and innovative products in an attempt to stimulate sales in stagnant market. For this reason, industry research firm IBISWorld has updated its report on the Snack Food Manufacturing industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

New product innovations and aggressive marketing strategies are expected to boost demand.

Melbourne, Australia (PRWEB) April 19, 2014

Volatile input prices, changing consumer trends and a saturated market are just some of the changes facing the Snack Food Manufacturing industry in Australia. According to IBISWorld industry analyst Ryan Lin, “while the industry has shown glimpses of promise in the five years through 2013-14, it has been plagued with rising commodity prices, turbulent economic conditions and increasingly health-conscious consumers that have ditched snacking in favour of healthier alternatives.” Over the five years through 2013-14, industry revenue is expected to increase by an annualised 2.2% to total $3.0 billion. In 2013-14, revenue is expected to increase by only 0.5%.

The industry exhibits a medium level of market share concentration, with Frito-Lay Australia Holdings Pty Limited and Snack Foods Limited dominating. The industry's major players have been faced with lower profit margins, increased competition from private labels and stagnating domestic demand, particularly in the salty-snacks segment, which has historically been the most profitable. “Changing consumer tastes and lifestyles have led to an increase in health awareness, making it one of the most important factors driving consumption choices,” says Lin. This has resulted in innovation and new product introductions in an attempt to stimulate sales growth in a mature and stagnant market. As with many manufacturing industries in Australia, high production costs often hamper price competitiveness and open up the market to cheaper products from nations with access to lower costs. Snack food imports are at a higher value than exports, which are estimated to account for 8.2% of industry revenue in 2013-14. The depreciation of the Australian dollar is expected to mildly assist the industry as imports become more expensive while exports become more competitive in the international market.

New product innovations and aggressive marketing strategies are expected to boost demand. Potato chips, the industry's largest product segment, are still one of Australia's most popular snack foods, with one of the largest and most widely consumed product ranges of all snack foods. Despite significant industry consolidation, enterprise numbers have not been shrinking, due to smaller niche producers entering the Snack Food Manufacturing industry.

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 mainly manufacture snack-food products such as potato chips, 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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