Food vans are expected to take off over the next five years, providing competition for existing players at key locations and events
Melbourne, Australia (PRWEB) July 01, 2014
A dramatic health kick has transformed Fast Food Services in Australia, with revenue expected to grow by an annualised 3.0% over the five years through 2013-14. This change in the industry has been largely driven by increased consumer awareness about the nutritional content of fast food and a conscious effort by consumers to choose healthier options. Industry operators have responded with the introduction of a range of healthier, premium choices with lower fat, sugar and salt levels. According to IBISWorld industry analyst Stephen Gargano, “This change in consumer preferences has also led to an influx of new operators offering higher quality fast-food options.” Industry revenue is forecast to post solid growth over 2013-14, rising by 2.8% to total $15.3 billion.
Trends in consumer age, particularly the increasing median age of the Australian population, have fuelled demand for healthier fast-food options. As a result, traditional fast food has declined as a share of revenue, while revenue from premium and healthy categories has shown solid growth. Competition between players remains intense and growth in the range of pre-prepared meals offered by supermarkets has eroded potential revenue for operators. The greater convenience and improved nutritional content of industry products is expected to drive revenue. Traditional fast-food operators are expected to further complement their classic ranges with newer healthy options, catering to changing consumer tastes. “The industry is projected to undergo some change as a result of increasing internet usage and mobile ordering applications,” says Gargano. Food vans are also expected to take off over the next five years, providing competition for existing players at key locations and events.
The Fast Food Services industry is characterised by a medium level of market share concentration. The top four players are McDonald’s, Yum! Restaurants, Subway and Competitive Foods Australia. Concentration in the industry has remained relatively constant over the past five years. The move towards healthier options and away from traditional fast food has resulted in the entry of some smaller players, which may provide competition to larger players over the next five years. Major players will look to strengthen their positions over the next five years through growth in store networks. Operators will continue attempts to maintain market share by reviewing their menus and implementing new products to meet the shift in demand towards healthier fast-food options.
For more information, visit IBISWorld’s Fast Food Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Industry operators primarily sell fast food including burgers, pizza, sandwiches and sushi. Produce used in the production of fast food is often purchased from wholesalers in its raw state before being transformed into fast food at store premises. Mobile food vans and milk bars that predominantly sell takeaway food and drinks are included in the industry.
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.