Industry Analysis & Industry Trends
Strong consumer demand for tea and coffee products has driven revenue growth in the Tea and Coffee Manufacturing industry over the past five years. Rising disposable incomes and increased demand for premium tea and coffee products have boosted industry performance over the past five years. Industry revenue is expected to grow at an annualised 1.6% over the five years through 2016-17, to reach $1.8 billion. Australia's coffee culture has supported the industry and ensured continued downstream demand from major markets, such as supermarkets and coffee shops. However, industry revenue has fluctuated over the past five years, in response to the volatility in the world price of coffee, and smaller operators have generally passed on cost increases to customers... purchase to read more
Industry Report - Starting a New Business Chapter
The industry displays medium barriers to entry and this has remained largely unchanged over the past five years. Potential entrants largely face the challenge of a competitive market with moderate market share concentration, with existing firms' dominance of the industry varying depending on the product segment. The industry's instant coffee and tea bag segments are heavily concentrated and entry into these segments would be difficult without heavy investment in automated machinery to lower costs to be competitive against larger manufacturers.
New firms would find it easier to enter the coffee beans and grounds and loose tea leaf segments, as these products are generally less concentrated and more niche than the industry's traditional segments... purchase to read more