Food retail spending expected to be flat in Australia this Christmas
Market research organisation IBISWorld has predicted that A$9.8 billion will be spent on food in Australia this Christmas – a timid 3.4 per cent increase spending in 2010.
According to IBISWorld, with annual inflation of around 3.3 per cent in Australia, this means that most food retailers will simply be treading water.
IBISWorld General Manager (Australia), Ms Karen Dobie said that in 2011, Australian shoppers have been savvy, seeking out the best value for money, the best range and the best service. This trend is anticipated to continue through Christmas.
Ms Dobie said, “About 34 per cent of Australians intend to spend less than they did last year and fewer than 20 per cent are planning to spend more. However, after a lacklustre year caterers, venue hire operators and restaurants will be boosted by corporate Christmas spending.”
IBISWorld’s report also said there is anticipated to be a shift towards seafood and leaner choices like poultry on the Christmas table this year as consumers become increasingly health conscious.
“Overall consumption of meat, fish and poultry will remain relatively stable this year,” said Ms Dobie. “Fruits such as bananas and mangos will return to the table, with bumper crops flowing in from the Northern Territory and Queensland expected to drive down prices.”