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Tea, Coffee and Other Food Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Aug 25, 2014, 09:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Changing lifestyles and consumption patterns have prompted manufacturers to innovate with their product lines, to stimulate sales and renew demand

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Melbourne, Australia (PRWEB) August 25, 2014 -- The Tea, Coffee and Other Food Manufacturing industry in Australia is characterised by the diversity of its products and the levels of value added in each segment. Despite a weak economic climate, waning consumer confidence and volatile commodity prices during earlier years, the industry remained resilient. This was due to the staple and inexpensive nature of its end products. More recently, changing lifestyles and consumption patterns have prompted manufacturers to innovate with their product lines in order to stimulate sales and renew demand. According to IBISWorld industry analyst Ryan Lin, “the ground coffee segment has grown in popularity over the past five years, as consumers have increasingly sought to make cafe-style coffee at home.” Falling appliance prices have also made home espresso machines and coffee makers more affordable. In the five years through 2014-15, industry revenue is expected to increase at an annualised 3.8%. In 2014-15, industry revenue is forecast to grow by 0.5%, to total $6.1 billion. While growth has slowed due to an increasingly competitive marketplace, this has been partially offset by premiumisation in various product segments.

The fortunes of the industry over the next five years will depend on the extent of innovation and competitive pressures faced by participants. However, industry players will be aided by easing commodity prices, an increase in demand for prepared meals, advancements in technology and production, and stable labour costs. Furthermore, the focus on high-protein and low-sugar diets will stimulate demand for green tea, ground coffee and artificial sweeteners, which have shown strong signs of ongoing growth over the past five years. Despite this, “the increasing prevalence of private-label products will weigh heavily on the industry and constrain revenue growth,” says Lin. Fortunately for the industry, its main sources of revenue – coffee and tea – are expected to be partially shielded from this trend by the relatively high levels of brand loyalty that they command. The highly fragmented nature of the industry's products means there will be varying trends across its segments, particularly with regard to herbs, spices, sauces and salad dressings.

The Tea, Coffee and Other Food Manufacturing industry has a medium level of market share concentration. The top players are Nestle Australia, Unilever Australia and Mars Australia. Industry concentration has been mostly stable over the past five years despite major players like actively pursuing mergers and acquisitions. Smaller players have entered the industry, focusing on niche products and highly specialised production. This trend has offset any concentration growth within the industry. At the other end of the spectrum, consolidation of larger companies is expected to increase in the next five years, due to acquisitions, continued product innovation, strong brand loyalty and aggressive marketing initiatives.

For more information, visit IBISWorld’s Tea, Coffee and Other Food Manufacturing industry in Australia report page.

Companies in this industry manufacture food products that are not classified elsewhere. These products include coffee, tea, dressings, seasonings, flavourings, herbs, spices, yeast, yeast extracts, ice, honey, salt and prepared meals. Manufacturers in this industry procure raw materials and process them into various finished products that are subsequently sold to wholesalers, retailers and related food manufacturers.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

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.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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