Ice Cream Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) September 06, 2014 -- The Ice Cream Manufacturing industry in Australia has performed positively over the past five years. Revenue is estimated to increase at a compound annual rate of 5.5% over the five years through 2014-15. Ice cream manufacturers have benefited from rising demand for ice cream products, particularly in the industry's premium and scoop and serve segments. Niche operators that provide premium ice cream and gourmet gelato products have proven to be extremely successful over the past five years. According to IBISWorld industry analyst Spencer Little, “despite fairly high levels of consumer health consciousness and the growing popularity of substitute snacks such as frozen yoghurt, demand for the industry's more traditional take-home tub segment has remained fairly steady.” Industry profitability has struggled over the past five years due to rising domestic milk prices, which have increased input costs and squeezed operators' profit margins. Although major brands such as Peters and Streets have high customer loyalty, only marginal price rises can be passed on to consumers due to the high levels of price competition in the industry. Revenue is estimated to grow by 1.5% in 2014-15, to reach $822.6 million.
Over the next five years, industry performance is expected to slow as consumers actively seek healthier snack options due to rising health consciousness. “Demand from supermarkets and grocery stores is projected to remain stable, particularly for brands with strong customer loyalty such as Peters and Streets,” says Little. The industry's major players are expected to develop new premium ice cream product lines over the next five years, in order to capture a greater share of the premium segment, which smaller and niche manufacturers have dominated over the past five years. Increased production of high-margin premium products and falling wage costs as a proportion of revenue are projected to offset rising milk and sugar input prices, leaving profitability fairly steady over the next five years.
The Ice Cream Manufacturing industry displays a high level of market share concentration. The four largest players are Peters Food Group, Unilever, Regal Cream Products and Dairy Bell. These players control the mainstream ice cream market and dominate the industry's standard take-home tub, take-home multi-pack and individually packaged product segments. However, some small manufacturers still exist in the industry, producing premium and niche ice cream brands. Niche ice creameries and gelato stores such as Cold Rock, Gelato Messina and Gelatissimo have very small market shares compared with the industry's major players, and specialise in premium scoop and serve ice cream in cups and cones. Due to the growth of these niche enterprises, market share concentration has decreased slightly over this period.
For more information, visit IBISWorld’s Ice Cream Manufacturing industry in Australia report page.
Enterprises in the industry primarily manufacture ice cream, gelato, sorbet or frozen confectionery.
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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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