Convenient and competitively priced goods have continued to be favoured by time-poor consumers.
Melbourne, Australia (PRWEB) June 14, 2014
The Prepared Meals Production industry in Australia has grown off the back of a number of favourable consumer trends over the past five years. Convenient and competitively priced goods have continued to be favoured by time-poor consumers, especially those living in single-member households. According to IBISWorld industry analyst Ryan Lin, “health consciousness and premiumisation have also helped boost the industry's overall appeal, with the increasing popularity of low-fat prepared meals and high-value, pre-cooked and pre-marinated meat varieties.” As a result, over the five years through 2013-14, industry revenue is forecast to have increased at an annualised 3.4%.
Despite these favourable conditions, the industry continues to face tough competition from substitute products such as takeaway foods and fast-food dining establishments. Rivals across the food industry have also ramped up their offerings of healthier food varieties in a bid to attract the health-conscious consumer. “In addition, the increasing prevalence of private labels has also hurt industry operators, as they find it difficult to compete with similar products launched by supermarket chains such as Coles and Woolworths,” says Lin. However, persisting demand from cost-conscious, time-poor consumers is expected to buoy the industry, with industry revenue forecast to grow 3.6% to $841.0 million in 2013-14. The industry displays a low level of market share concentration. McCain Food (Aust) Pty Ltd and Simplot Australia (Holdings) Pty Limited are the only major players.
Over the coming years, the Prepared Meals Production industry is expected to continue growing. Sustained growth is expected to be a result of increasing product sophistication, with high-value prepared meals tasting better, costing less and becoming even easier to prepare. These innovations are largely due to rising competitive pressures, which are urging industry operators to innovate and appeal to a wider consumer base. Competition from substitute products is also forecast to increase. Specialty prepared meals, such as gluten free, vegan and non-dairy varieties, are expected to rise in popularity as health complications and dietary preferences continue to shape the Australian food industry. Large industry operators are forecast to continue building economies of scale, while smaller industry operators specialise in niche products, especially special dietary prepared meals and premium meals.
For more information, visit IBISWorld’s Prepared Meals Production industry in Australia report page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Firms in this industry primarily manufacture prepared meals, which usually require only heating for service. Firms cook purchased ingredients, package the final product and sell it to grocery wholesalers, supermarkets and other food outlets.
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.
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.