Edible Oils Manufacturing in Australia Industry Market Research Report Now Available from IBISWorld
Melbourne, Australia (PRWEB) December 05, 2014 -- Operators in the Edible Oils Manufacturing industry in Australia have performed poorly over the past five years. According to IBISWorld industry analyst Brooke Tonkin, “producers have endured downward price pressures from downstream buying markets, growing competition from private-label and imported oils, and shifting consumer preferences.” Combined, these factors have negatively affected profit margins over the period. Industry revenue is projected to fall at an annualised 0.3% over the five years through 2014-15, to reach $506.7 million. However, the industry is anticipated to post a small recovery in 2014-15, with revenue forecast to grow by a marginal 0.8%.
The industry has struggled despite rising per capita fat consumption. Many consumers have made efforts to avoid fats and oils in their food. This has hurt demand for bottled oils sold to consumers through supermarkets and grocery stores. “Fat intake has increased due to rising consumption of snacks and other foods outside the home,” says Tonkin. These foods often contain oils and fats that consumers are unaware of. For example, many muesli bars contain vegetable oil, so by increasing their intake of these ‘healthy' snacks, consumers are actually increasing their fat intake. Since the edible oils are for immediate consumption or use in cooking, the industry has not benefited from increasing fat consumption. Olive oil has been a major growth segment in the industry. Olive oil consumption in Australia increased more than 10.0% annualised over the 10 years through 2013 (latest data available). Many consumers perceive olive oil to be healthier than other types of oils, such as vegetable or canola oil. This is due to olive oil's links to reduced risk of blood pressure problems and cardiovascular disease. Furthermore, olive oil is often consumed with fresh foods, such salads or bread. The industry exhibits a medium level of market share concentration. Major players include GrainCorp Limited, Peerless Holdings Pty Ltd and Boundary Bend Limited.
The Edible Oils Manufacturing industry is expected to return to growth over the next five years. Consumers will continue to increase their consumption of premium oils due to health perceptions, which will help to boost revenue. Furthermore, the forecast depreciation of the Australian dollar will make imports more expensive, improving the competitiveness of locally produced oils.
For more information, visit IBISWorld’s Edible Oils Manufacturing industry in Australia report page.
Players in the industry manufacture plant-based oils for immediate use or for use in cooking. Players purchase their products from upstream growers or may grow their own grain or oilseeds.
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]
Share this article