Cured Meat and Smallgoods Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Over the past five years, the industry has undergone significant consolidation and rationalisation. For this reason, industry research firm IBISWorld has updated its report on Cured Meat and Smallgoods Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Volatile input costs, climatic uncertainties and nutritional concerns have affected the consumption of high-fat smallgoods.

Over the past year, demand for smallgoods has been buoyed by the development of new products that have addressed rising consumer trends focused on healthy eating and convenience. Industry revenue for operators in the Cured Meat and Smallgoods Manufacturing industry in Australia is forecast to grow by 2.3% in 2014-15, with innovative new products such as low-fat smallgoods and more efficient single-serve packaging for consumers' convenience. According to IBISWorld industry analyst Ryan Lin, “domestic demand has also been supported by the increasing availability of pig meat imports, but these only account for a marginal proportion of overall domestic demand.”

Despite these favourable trends, the Cured Meat and Smallgoods Manufacturing industry has been plagued by low profitability and volatile conditions, which have contributed to significant consolidation over the past five years. The industry has faced volatile input costs, climatic uncertainties and nutritional concerns, which have affected the consumption of high-fat smallgoods. As a result, industry revenue is expected to decrease by an annualised 1.1% over the five years through 2014-15, to $3.3 billion. Over the past five years, the industry has undergone significant consolidation and rationalisation. In 2009, Hans Continental Smallgoods, which had been placed into administration, was sold in part to one of the largest industry players, Primo Meats. “This reduced the market to two large national players and a host of much smaller manufacturers,” says Lin. This level of vertical integration allows producers to achieve economies of scale and reduce costs and their dependence on labour. The industry displays a medium level of market share concentration. Major players include JBS Australia Pty Limited and Food Investments Pty Limited.

Domestic prices are forecast to rise over the next five years. The Cured Meat and Smallgoods Manufacturing industry is projected to introduce new products that focus on health and convenience. This will be largely due to recovering consumer sentiment and rising demand for sophisticated smallgoods produce. Much of the demand increase will be due to value-added products and products that capitalise on changing consumer trends, with convenience becoming a decisive factor in smallgoods consumption.

For more information, visit IBISWorld’s Cured Meat and Smallgoods Manufacturing industry in Australia report page.

This industry includes firms that primarily manufacture bacon, ham, smallgoods and other prepared meat products. Smallgoods usually refers to meat products where the meat has been manufactured to form a new product, such as sausages; salamis; pates; and dried, roasted and preserved meat products. Smallgoods are made from pig meat and other meats such as poultry and beef.

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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.

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Gavin Smith
IBISWorld
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