CONTENTS
1 MARKET STRUCTURE 3
1.1 Market Overview 3
1.2 Market Drivers 3
1.3 Market Potential 6
1.4 Import Trends 8
1.5 Key Players in the Market 10
1.6 Regulatory 12
1.7 Sustainability 13
2 MARKET ENTRY AND DEVELOPMENT 15
2.1 Market Entry Strategies 15
2.2 Points of Differentiation 16
2.3 Long Term Strategic Issues 17
2.4 Distribution Channels 18
3 MARKET RESOURCES AND CONTACTS 20
Market Overview
According the Australian Food and Grocery Council (AFGC)the Australian food, beverage and grocery manufacturing industry is:
a major contributor to the Australian economy – generates sales and service income in excess of A$100 billion annually
Australia’s largest manufacturing sector, accounting for 26 percent of total manufacturing – four times larger than the automotive industry
Australia’s largest manufacturing employer – 315,000 people, but this number is declining and it has lost 3,468 jobs since 2006-07
a net-importer of food and grocery products – a trade surplus of $4.4 billion in 2004-05 has turned into a trade deficit of $1.8 billion in 2009-10
on a turnover basis, Australia’s food and grocery sector is comparable in size to the Australian mining industry. However it is also under intense pressure from rising imports and flat export figures.
New Zealand food and beverage products are well accepted in Australia, with the major imports from New Zealand being wine, dairy, seafood, bakery products, beverages, frozen vegetables and soup. The joint Australia New Zealand Food Standards Code means that the same food standards apply in both markets and there are few Australian Quarantine and Inspection Service (AQIS) issues which restrict entry of products.
The grocery retail sector is very concentrated in the hands of Coles and Woolworths who share almost 80 percent of this market, in contrast to the food service sector which is very fragmented.
Current trends include a growing concern with obesity and other health issues, which has created opportunities for products that can deliver fresh, healthy, natural snacks and meal solutions. It has also increased demand for organic products.
