Although we are revising up our real GDP growth forecast for Australia for 2014 to 2.8% from 2.3% previously, we remain below consensus, and expect growth to slow to 2.3% in 2015 as the strong construction picture struggles to counteract the weakness in external demand.
High levels of household debt, threats of higher taxes, softening job market and income outlook, together with possible declines in house prices lead us to maintain our subdued outlook for private consumption for 2014. As a result, we continue to see a shift of consumption habits towards private labels in Australia over the coming years as a growing number of consumers acknowledge private labels as a very compelling alternative to proprietary branded goods.
Headline Industry Data (local currency)
2014 per capita food consumption = +0.8%; forecast to 2018 = +1.3% compound annual growth rate (CAGR).
2014 soft drinks sales = +2.1%; forecast to 2018 = +2.6% CAGR.
2014 alcoholic drinks sales = +1.9%; forecast to 2018 = +2.4% CAGR.
2014 mass grocery retail sales = +3.4%; forecast to 2018 = +4.3%.
Key Industry Trends And Developments
Heinz Cuts Jobs in Australasia : In autumn 2014 global food company Heinz announced that over 240 jobs in Australia, New Zealand and Papua New Guinea are to be axed as Heinz implements a "streamlined" structure. The company said that the move would allow it to become "more flexible and efficient" in "extremely competitive local and global markets".
Coca-Cola Amatil Launches Smaller Cans: In autumn 2014 Australia-based beverage company Coca-Cola Amatil (CCA) launched smaller 250 millilitre 'handbag-size' cans for AUD2 (1.74) in Australia, in a move to boost sales and promote a healthier image. The cans will be sold at convenience stores and petrol outlets across Australia. The smaller cans are part of the company's commitment to a 'healthier Australia', according to the company. CCA believes that the small sized cans of Coca-Cola, Sprite and Fanta...
The Australia Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.
BMI's Australia Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Australia.
- Benchmark BMI's independent food and drink industry forecasts for Australia to test other views - a key input for successful budgeting and strategic business planning in the Australian food and drink market.
- Target business opportunities and risks in Australia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.
BMI’s Food and Drink Risk Reward Index
BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.
BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:
- Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
- Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
- Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.
Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.
Mass Grocery Retail Forecasts
Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.
Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.