Delicatessens in Australia Industry Market Research Report Now Available from IBISWorld

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Despite ongoing competition from supermarkets, delicatessens are anticipated to perform well over the next five years. For this reason, industry research firm IBISWorld has added a report on the Delicatessens industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Rising preferences for premium products among some consumers have buoyed the industry over the past three years.

Delicatessens in Australia have struggled over the past five years. Poor consumer sentiment and spending during the years following the global financial crisis contributed to the industry's decline. Following this, strong competition from the major supermarkets added to the industry's pain. However, according to IBISWorld industry analyst Brooke Tonkin, “rising preferences for premium products among some consumers have buoyed the industry over the past three years.” Over the five years through 2014-15, industry revenue is projected to post annualized growth of 0.6% to reach $908.3 million. Supermarkets and grocery stores are the largest competitive threat to the industry. The price war that escalated in 2011 drew consumers away from specialized retailers and into supermarkets. Consumers at the low-price end of the market changed their shopping habits, purchasing deli items in the supermarket instead of at delicatessens. Delicatessens targeting the lower income quintiles have been forced to decrease their prices in order to compete and entice customers back to their shops. However, the combination of rising purchase costs and lower prices has caused average industry profit margins to fall over the past five years.

Some delicatessens have distinguished themselves from supermarkets by targeting consumers at the premium end of the market. Rising discretionary income among these consumers has contributed to a growing trend of premiumization. Delicatessens that have altered their product mix (by adding a number of imported French cheeses, for example) and shifted their focus to the premium end of the market are expected to have performed better financially over the past five years. Industry revenue is expected to grow by 1.7% in 2014-15 as a result of the premiumization trend. “Despite ongoing competition from supermarkets, the industry is anticipated to perform well over the next five years,” says Tonkin. Ongoing premiumization and opportunities for expansion will contribute to revenue growth.

The Delicatessens industry is expected to exhibit a low level of market share concentration. The industry is characterized by a large number of highly diverse operators. The majority of delicatessens are independently owned and operated, targeting a relatively small geographic area such as their local neighborhood. Consequently, it is difficult for any individual delicatessen to build the economies of scale required to expand nationally. This has made the industry highly susceptible to competition from other retailers, most notably the major supermarkets, Woolworths and Coles. Over the past five years, the industry's market share concentration has remained low. Industry operators have struggled to compete against supermarkets that are also offering an increasing range of deli-style products. Over the coming years, the industry is expected to increasingly gear its product offerings towards higher income shoppers, though this is not expected to significantly change market share concentration.

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

Firms in this industry retail specialty meats, cheeses, bread and other products, which are often sold by weight.

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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.:

Recognized 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 organizations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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