Australia’s Dairy market will grow at a CAGR of 4.0% in the five years to 2021. This follows a period of decline in US Dollar terms which saw the market record a CAGR of -2.8% in the five years to 2016.
Australian Dairy market is large, stable, and growing steadily, recording a CAGR of 3.6% in Australian Dollar value terms between 2011 and 2016. Negative growth in the five years to 2016 was recorded in US Dollar terms only, following the depreciation of the Australian Dollar from 2013 onwards. With GDP set to increase in 2017, growth indicators for the Australian economy are positive. Prime Minister Turnbull’s anti-austerity measures seek to take advantage of low interest rates and boost consumer spending.
Despite a 2011- 2016 decline in US Dollar terms, Australia’s Dairy market is stable and growing steadily, with a value projection of US$12.9 Billion by 2021. Despite the government’s anti-austerity tone and pro-business stride, slow growth in real wages is a persistent threat that could continue to undermine growth in consumer spending in the five years to 2021. Inflationary pressures could make matters worse.
Australia is the largest Dairy & Soy Food market by per capita expenditure in US$ terms, ahead of other large markets including the US, China, and Japan. Strong growth in per capita expenditure is expected to resume in the five years to 2021, following a prolonged period of negative growth to 2016 in US$ terms. Australia is a large, stable, and steadily growing market with numerous opportunities for investment and growth in Dairy.
Australia is heavily dependent on Chinese demand, and a stronger than expected economic downturn in China could leave government finances exposed. The government’s recent decision to lower taxes and increase spending on innovation, entrepreneurship, and infrastructure is a boost for Australian businesses.
The report "Top Growth Opportunities: Dairy & Soy Food in Australia" provides an overview of the dairy and soy food market, analyzing market data, demographic consumption patterns within the category, and the key consumer trends driving consumption.
In particular, this report provides the following analysis:
- Key consumer demographic groups driving consumption within the Australian market. Improve your consumer targeting by understanding who’s driving the market, what they want, and why.
- A study of market value and volumes over 2011-2016 for Australia, supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
- White space analysis, to pinpoint attractive spaces in the market and the key actions to take.
- Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
- Examples of international and regional product innovation targeting key consumer needs.
- Despite a 2011-2016 decline in US Dollar terms, Australia’s Dairy market is stable and growing steadily, with a value projection of almost US$13 billion by 2021. In spite of the government’s anti-austerity tone and pro-business stride, slow growth in real wages is a persistent threat which could continue to undermine growth in consumer spending in the five years to 2021. Inflationary pressures threaten to make matters worse.
- Despite recording negative growth in US$ value terms due to the effect of currency movements, the Australian Dairy & Soy Food market registered steady growth in volume between 2011 and 2016. The Yogurt category is forecast to record the fastest volume and value growth in the five years to 2021.
- Hypermarkets and Supermarkets dominate the Australian FMCG retail environment, accounting for just over half of dairy consumption value in Australia in 2016.
- However, foreign-owned retail brands such as ALDI have been steadily expanding their market share in recent years by targeting value-seekers.
- The top three brands across all segments managed only a slight increase in their collective average value share between 2011 and 2016, demonstrating that consolidation in the Australian Dairy market is slowing due to reduced consumer spending and private label gains.
- The value share of private label is growing faster than that of brands across all segments in the Australian Dairy market, highlighting a move among consumers towards private label products, which are often cheaper but increasingly perceived to be of equal value to brands.
- This report brings together consumer analysis and market data to provide actionable insight into the behavior of Australia's dairy consumers.
- This is based on the author's unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the Dairy sector.
- Category, brand, and packaging dynamics are also examined.
- This allows product and marketing strategies to be better aligned with the leading trends in the market.
Top 10 global growth opportunities scores
Top global issues
Assessment against global strategic issues
Strategic issues map
Predicted future issues for the global sector
Reward and risk assessment
Opportunity score - overview
Consumer spending trends - peer group comparisons
Political, Economic, Social, and Technological: Analysis
Enablers and inhibitors of growth
Rewards and opportunities for growth
Summary of the market
2.Market insight - identifying the opportunities to move into
Market growth by category
Value growth of the market
Volume growth of the market
Level of premiumization by category
Category analysis - key drivers of change
3.Retail and distribution insight - key channels and retailers driving growth
Dairy retail channel share
Key Retail Channel trends
Routes to market
Drivers of change in the sector
4.Company and brand insight - the competitive landscape defined
Company and brand strength
Private label penetration
Brand share by leading supplier
International and domestic brand analysis
Company and brand strength summary
5.Consumer insight - who, what, when, where and why
Strategic issues map
Key consumer driver implications
Key consumers trends
Key Health & Wellness trends
Penetration of Health and Wellness claims by category
Consumer trends summary
6.Product and packaging insights
Key Product Insights
Trends and strategic issues - other notable product trends
Key product innovation case studies
Key Packaging Insights
Trends and strategic issues
Product launch key takeouts
7.White spaces and innovation opportunities - space to move into
Growth segments to target
Consumer spaces to target
Product launch key takeouts
8.Appendix and Definitions
- Coles Supermarkets
- Ritchies Supa IGA
- Harris Farm Markets
- Friendly Grocer
- Lion Pty Ltd.
- Fonterra Co-operative Group
- Groupe Lactalis
- Devondale Murray Goulburn
- The Kraft Hei