Increased health awareness among consumers leads to industry growth
Melbourne, Australia (PRWEB) March 30, 2013
The Soy and Almond Milk Production industry has benefited from the health and wellbeing movement, which has led to an increase in the popularity of non-dairy beverages such as soy and almond milk. Soy milk accounts for the lion's share of industry revenue, due to its superior nutritional qualities of being high in protein and low in sodium and saturated fats. Smaller segments, such as almond, rice and coconut milk, have also grown rapidly, but account for only a small share of industry revenue. Other sociological and biological factors are driving industry revenue. Vegetarianism and veganism are gaining momentum, and the incidences of lactose intolerance and food allergies are growing. According to the IBISWorld industry analyst Naren Sivasailam, “the high levels of brand loyalty in the industry have resulted in greater value addition. This is evidenced by robust growth in So Good’s and Vitasoy's revenue and profitability”.
The Soy and Almond Milk Production industry is subject to fluctuations in input prices, particularly soybeans, almonds and rice. The majority of the soy milk produced in Australia is based on imported soy protein or isolate, which can be influenced global fluctuations in commodity prices from major producers such as the United States and Brazil. In the five years through 2012-13, industry revenue is estimated to increase by an annualised 4.7% to total $136.8 million. The industry is also expected to grow 6.3% over the current financial year.
The industry's future is bright, as the health and wellbeing movement will continue to influence beverage consumption choices. “The mainstream acceptance of soy milk and other non-dairy alternatives will further drive demand, particularly demand from the food service and accommodation sector”, says Sivasailam. The industry will grow over the next five years. However, the growth will be tempered by increasing competition, both within and outside the industry. New entrants will look to capitalise on industry growth, especially within the almond, coconut, rice and other specialty plant-based milk segments. The soy milk market is nearing saturation, and already established players have strong presences that could deter new entrants. Private-label products have been largely missing from the industry, a trend that is expected to change over the next five years. The two largest industry producers are Sanitarium and Lion Pty Ltd.
For more information, visit IBISWorld’s Soy and Almond Milk Production report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld Industry Report Key Topics
Companies in this industry manufacture non-dairy milk substitute beverages. These products are usually plant-based and may be made from soybeans, almonds, hemp, coconut, rice or oats.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.