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Pasta Production in Australia Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Sep 04, 2014, 09:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Industry players have fought back against competition with heavy brand promotion and product development, to stimulate consumer interest in pasta

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Melbourne, Australia (PRWEB) September 04, 2014 -- Pasta is a staple good found in many Australian pantries. Despite this, the Pasta Production industry in Australia has performed poorly over the past five years. Strong competition from private-label products has hurt producers of branded pasta. Furthermore, imports have continued to flood the market, to the detriment of local producers. According to IBISWorld industry analyst Brooke Tonkin, “industry players have fought back with heavy brand promotion and product development, in an attempt to stimulate consumer interest in pasta.” Over the five years through 2014-15, industry revenue is projected to post marginal annualised growth of 0.6%, to reach $773.4 million. Pasta is a relatively homogenous product. With numerous options on the market and little distinction between products, consumers tend to be quite price sensitive. This has made the industry vulnerable to private-label competition. The escalation of the price war between the supermarket giants in 2011 involved heavy promotion and discounting of many private-label products, including pasta. Furthermore, the improving quality of private-label products has helped drive a consumer shift towards private-label pasta. Private-label products are sold at a lower price, which flows through to the manufacturing level, reducing industry revenue.

Producers of branded products responded to competitive pressures by targeting niche consumer markets, moving towards premium products and heavily promoting their brands. For example, Vetta Pasta launched high-protein, low-carbohydrate products to target health-conscious consumers in 2013, and Latina Fresh launched their premium Deli-inspired Cappelletti pasta range in 2014 to target the premium end of the market. Such activity has driven the industry's recovery over the past three years, as these products attract higher prices and thus contribute to higher revenue. These products will contribute to the forecast 2.1% revenue growth in 2014-15. “Fierce competition will continue over the next five years,” says Tonkin. Private-label products have cemented their place in the industry and are likely to grow in popularity as they expand into the fresh pasta space. However, branded product producers will be better positioned to withstand competitive pressure. The launch of new products, such as egg-free pasta, will allow producers to target niche consumers, while ongoing premiumisation of products will contribute to continued growth.

The Pasta Production industry is characterised by a medium level of market share concentration. The top players in the industry are Clearlight Investments Pty Limited, General Mills Holding (Australia) Pty Ltd and Rinoldi Pasta Pty Ltd. While there are a number of large, prominent brands operating within the industry, the market remains highly fragmented. Increases in concentration have been limited, as major players have sought to increase revenue through diversification into different areas outside the purview of the industry.

For more information, visit IBISWorld’s Pasta Production industry in Australia report page.

The industry manufactures fresh perishable pasta dishes and dry pasta products after purchasing ingredients from other food manufacturers. The end products are then packaged and distributed to grocery wholesalers, supermarkets and other food outlets. The industry does not include the production of noodles.

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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