Industry Analysis & Industry Trends
The Tea, Coffee and Other Food Manufacturing industry is characterised by the diversity of its product range and the ongoing innovation in each product segment. Tea and coffee account for just under a quarter of total industry revenue, while prepared meals account for about 10.0%. Other food products contribute the remainder of industry revenue, generally through sales to other food manufacturers. Over the past five years the industry has faced volatile input prices, threats from imports, rapidly changing consumer demands, and an increase in health concerns from consumers. In the five years through 2015-16, industry revenue is forecast to increase at a compound annual rate of 1.8% to total $5.0 billion. In 2015-16, revenue is expected to increase 1.6%... purchase to read more
Industry Report - Industry Investment Chapter
The Tea, Coffee and Other Food Manufacturing industry is characterised by a medium level of capital intensity. The industry consists of large-scale manufacturers that are highly reliant on automated machinery, along with small-to-medium enterprises that do not have the capital to invest into machinery and automation.
Wages have slowly increased as a percentage of revenue over the past five years. For each dollar spent on wages, the industry invests an estimated $0.22 in capital. This is attributable to wage costs increasing, and an increasing number of niche players entering the industry.
Modern manufacturing plants require high levels of capital expenditure on sophisticated technology and equipment that increase productivity without the need for additional labour... purchase to read more