Australia Market Research

The Australia market research deems the country to be a mature market with a bit of a slowdown expected by the end of 2011 due to reduced consumer confidence in the food and beverages market. This will be due to a second Chin... view more

Australia Market Research

The Australia market research deems the country to be a mature market with a bit of a slowdown expected by the end of 2011 due to reduced consumer confidence in the food and beverages market. This will be due to a second Chinese slowdown which will affect the Australian market as well, though not on a large scale. The second reason which is emphasized in the research is that the Australian economy will be under a larger public debt because it lacks the pull which the Asian markets possess over the food and beverage sector. Though there is a potential for slowdown of the economy in the food and beverage sector, there won’t be any pessimism for the manufacturing firms because of the presence of high consumption levels, as well as greater susceptibility to high value product launches.

One of the key factors which will drive industry growth by the end of the 5-year period from 2010 to 2014, will be the increase in mass grocery retail sales to 22.9%. One of the primary reasons for this would be the undeveloped discount sector which is set to increase sector sales by almost 40%. The next segment which is forecasted to increase is beer volume sales, albeit small in nature. By the end of 2014, the beer volume sales are expected to increase by 2.5%. Rather than volume growth which is minimal, there will be high percentage rise in form of value due to current premiumisation going on in the industry. The next segment shows that the per capita food consumption is going to increase by 2.6% by the end of the current year 2010, but it is expected to drop down to 1% by end of 2011 due to consumer diffidence, which is a result of the Chinese slowdown.

The Australia markets research also shows that there are a few companies which are doing all there is to it to promote the economy and more importantly, the food and beverage sector. For instance, the National Foods Company has planned to spend AUD 5.5mn in its milk processing unit in Malanda, Queensland, while it has already spent AUD 1.3mn over the past 8 months on the same. Apart from this, it also plans to invest AUD 55mn to expand its Crestmead dairy plant. All of these efforts are seen by the research as something which is being done to remain competitive even in tough times that are expected to hit the Australian economy by 2011. According to the research, the slowdown which is going to affect Australia by 2011 is primarily due to the Chinese slowdown and there will be lower consumer confidence, and restricted domestic economic growth coupled with lower spending by consumers. Finally, the report also forecasts a heavy decrease in spending, due to high indebtedness of Australian consumers due to a slump in house prices.