Snack foods soar in Australia with healthier marketing focus
With Australians navigating increasingly busier lifestyles, leaving less time to prepare and eat homemade meals, the overall consumption of snack foods is increasing – with business information analysts at IBISWorld forecasting Australia’s Snack Food Manufacturing and Health Snack Food Production industries will generate combined revenue of over $3.0 billion in 2015-16.
While traditional Snack Food Manufacturing continues to generate the greatest overall revenue, IBISWorld identified the Health Snack Food Production industry as growing at the faster pace over the past five years, increasing by an annualised average of 3% – despite revenue growth being somewhat hampered through the grocery supply chain due to downward pressure on prices.
|Average annual growth %|
|Snack Food Manufacturing||2228.6||2384.0||1.4%|
|Health Snack Food Production||650.7||755.2||3.0%|
“Snack food options have expanded beyond traditional snacks – such as potato chips and biscuits made with standard white flour – over the past five years as consumers become increasingly health conscious and seek higher quality snack foods,” said IBISWorld senior industry analyst Ryan Lin.
Health snack foods are expected to make up a greater share of consumer snacking habits.
“However, there has also been a tangible shift towards premium snack foods, such as gourmet-flavoured chips, alongside those perceived to be healthier options or that respond to specific dietary requirements – such as low fat, low salt, low sugar, organic, gluten-free, dairy-free, vegan and so forth,” said Lin.
“While potato chips remain the most popular form of snack food, increasing consumer demand for healthier options manufactured by Australia’s Health Snack Food Production Industry – including dried fruits and nuts, which account for 42.8% of industry revenue; muesli bars (29.1%); protein bars (17.4%), and other items such as fruit and vegetable bars (10.7%) – is anticipated to drive growth and deliver both challenges and opportunities for industry players,” said Lin.
IBISWorld highlighted Australia’s Biscuit Manufacturing, Potato Chip Production, Cake and Pastry Manufacturing and Chocolate and Confectionary Manufacturing industries as key sectors impacted by the trend towards premium and healthier snack food options.
“While timely and clever product innovation will help drive some growth for traditional snack industries, this will be tempered by an increase in availability of healthy substitutes,” said Lin.
|Average annual growth %|
|Potato Chip Production||987.8||1,057.4||1.4%|
|Cake and Pastry Manufacturing||1,437.2||1,520.0||1.1%|
|Chocolate and Confectionary Manufacturing||5,540.8||6,087.0||1.9%|
Supermarkets and Grocery Stores will be the biggest retail benefactors of increased snack food consumption, particularly as each supermarket chain looks to expand their private-label product portfolios.
The growing demand for cheaper private-label products has resulted in more shelf space for these items, with private-label specialist ALDI leading the charge, followed by Woolworths and Coles. “Woolworths has already had strong success with its health-conscious Macro Wholefoods and Macro Organic private-label brands, and are expected to continue leveraging this success to gain a greater foothold in the health snack food market,” said Lin.
Woolworths has delivered in spades to shareholders in the last 20 years, but the rot had set in a de...
McCain Australia will be moving into a new “state-of-the-art” robotic cold storage facility in the M...
In case anyone ever doubted it, Australia’s love for a meat pie has been confirmed by the latest sta...
SumoSalad is on the hunt for new restaurant locations as part of a change in business strategy for t...
The Victorian Environment Protection Authority (EPA) has fined Bulla Dairy for spilling approximatel...
Aldi’s share of Australia’s supermarket dollar continues to grow, but can the German discount chain ...
The Australian Open has attracted criticism for selling bottle water imported from China.
Australia’s wine producers stand to make significant inroads into the Chinese market from a deal wit...