Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Baby food; Bakery products; Canned/preserved food; Chilled processed food;
Confectionery; Dairy products; Dried processed food; Frozen processed food;
Ice cream; Impulse snack products; Meal replacement products; Meal solutions;
Noodles; Nutrition/staples; Oils and fats; Pasta; Ready meals; Sauces;
dressings and condiments; Snack bars; Soup; Spreads; Sweet and savoury snacks
Executive summary
Packaged food continues to record good growth in 2007
Packaged food continued to enjoy good growth in 2007. Despite increased
packaged food prices, due to drought and petrol price hikes, consumers
continued to purchase Australian products to support the local industry.
Chilled processed food recorded the fastest retail volume and value growth in
2007, partly because these products provide convenience for time-poor
consumers. Meanwhile, meal replacement products continued to register negative
retail volume and value growth in 2007. Lack of brand awareness and
competition from alternative product types are the main reasons for the poor
performance of this packaged food category.
Healthier foods emerge in Australia
The growing obesity rate in Australia has encouraged people to become
increasingly aware of the importance of healthy lifestyles. The Australian
government' s campaigns aimed at lowering the obesity rate in the country
helped to increase the number of health conscious consumers. As a result,
manufacturers launched more low/no fat and sugar packaged food products to
meet the increasing demand for healthier food in Australia. In addition,
functional packaged food products with, for example, added calcium, vitamins
or plant sterols are starting to emerge in Australia, as manufacturers seek
ways to increase their value shares.
Artisanal leads packaged food in 2006
Artisanal producers accounted for the highest share of current value sales of
packaged food in 2006, largely due to the demands of time-poor consumers. More
retail bakery stores are appearing in Australia, offering a wide range of
baked products from bread to doughnuts. Multinationals continued to exert a
strong influence on packaged food in Australia through major branded players
such Nestlé Australia Ltd and Cadbury Schweppes Australia Ltd.
Supermarkets/hypermarkets is the main distribution channel in 2007
Supermarkets/hypermarkets remains the dominant distribution channel in
packaged food in Australia. Supermarkets/hypermarkets increased its retail
value share of sales in 2007, while convenience stores also performed well,
though it trails a long way behind supermarkets/hypermarket. Internet sales of
packaged food remain very low, as consumers are concerned about freshness and
the expiry dates of these products. Consumers are also concerned that by
ordering packaged food products through the internet they would receive lower
quality food compared to physical purchases from supermarkets/hypermarkets.
Positive outlook for packaged food
Packaged food is predicted to record reasonable growth rates over the forecast
period. Trends such as longer working hours, more working women and
increasingly stressful lifestyles are expected to continue over the forecast
period, leaving consumers with less time to prepare food. These factors are
expected increase the demand for convenience food such as chilled processed
food and ready meals. Also the trend for premium snacks as a reward is likely
to trigger stronger growth for impulse snack products over the forecast period.
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