Industry Analysis & Industry Trends
Strong demand and the rapid premiumisation of tea and coffee products has driven revenue growth in the Tea and Coffee Manufacturing industry over the past five years. Industry revenue is forecast to rise by an annualised 4.4% over the five years through 2014-15. This strong growth includes a rise of 2.5% in 2014-15, to total $2.3 billion. Australia's coffee culture has supported demand for industry products over the past five years, with particularly strong growth at the higher pricepoints. Similar trends have been evident across the industry's tea segments, with consumers willing to spend more for an enhanced product offering. Manufacturers have worked to meet consumer demand by offering a raft of new premium products across the industry in an effort to attract premium prices... purchase to read more
Industry Report - Industry Investment Chapter
The Tea and Coffee Manufacturing industry in Australia exhibits a medium level of capital intensity. For every dollar that industry operators spend on wages, $0.18 is spent on capital investment. In an effort to support profitability, many industry firms are increasing their reliance on capital, boosting automation within factories. This increased capital investment allows industry operators to reduce wage costs and increase production efficiency. These increases are more pronounced among larger firms due to the economies of scale involved in capital-intensive operations.
While large industry firms have expanded their use of technology, smaller firms have not been able to or have not want to expand their use of technology to the same degree... purchase to read more