New research has outlined the likely growth industries within the Australian food and beverage sector for the next few years, with water, coffee and ice cream forecast to be among the leading lights. Private label goods, meanwhile, are likely to steadily increase their market share as retailers push their own brands harder than ever before.

Private label is not as well developed as in many European countries but has been a growing feature of the market, Leatherhead’s Global Food Markets research noted. Its share in value terms is highest in butter (39%), milk (38%), cooking oils (27%), bread and morning goods (24% value share), cheese (20%), cakes (18%), dried pasta (13%), sugar confectionery (13%) and savoury snacks (12%).

Growth sectors
Despite the market’s increasing maturity, in many sectors a period of further growth is expected, driven by rising demand for healthier and more convenient product formats.

Increasing manufacturing costs, however, will push value sales ahead of volume gains. Further increases in value sales are expected to be highest in mineral water, coffee and ice cream. Consumption of mineral water will continue to grow as per capita rates start to catch-up on levels in the western world. Growth in coffee is expected, with market value likely to approach $1 billion by 2012, due to the strong performance of premium instant and roast products. Ice cream sales (through grocery channels) and also influenced by premium varieties will grow at a similar amount and will also surpass the $1b sales mark by 2012.

Dairy and confectionery products are also expected to receive a sales boost in the coming years.

Leading food and beverage sectors for 2009 through 2012:

1. Mineral water (19.3% sales growth forecast)
2. Coffee (13.9%)
3. Ice cream (12.2%)
4. Cheese (10.9%)
5. Chewing gum (10.7%)
6. Chocolate confectionery (10.7%)
7. Sugar confectionery (9.8%)
8. Butter (9.7%)
9. Bakery products (8.8%)
10. Milk & Cream (8.8%)

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