Industry Analysis & Industry Trends
The Cured Meat and Smallgoods Manufacturing industry has been plagued by low profitability and marginal revenue growth, which have contributed to significant consolidation in the past five years. The industry has been faced with volatile feed costs, climatic vagaries and nutritional concerns that have affected the consumption of high-fat foods. There has been a slight turnaround for the industry with demand buoyed by product innovation and the development of new products that have addressed consumer needs of health and convenience. Innovative has yielded low-fat products and single-serve packaging for the convenience conscious. Production has also been supported by the increasing availability of pig meat imports, but these only account for a marginal proportion of domestic demand... purchase to read more
Industry Report - Starting a New Business Chapter
Potential participants can be deterred from entry due to the capital requirements of establishing or purchasing a processing plant. Typically, bacon and ham production is characterised by large-scale operators. It is difficult for new entrants to effectively compete against these incumbents on a smaller scale. Therefore, comparable operations would require significant investment for buildings and machinery.
Effective entry can also be hampered by existing brand loyalty among consumers. The nature of packaging in smallgoods manufacturing means that brand promotion is more prevalent than it is in other processed meat industries. The importance of branding in the industry allows incumbent firms to obstruct entry through strategic marketing like brand proliferation... purchase to read more