Canned: Industry revenue has dried up due to competitive pressures from low-cost imports

The Fruit and Vegetable Processing industry has struggled with increasing external competition over the past five years. Rising import penetration and high operating costs have hurt the industry's performance over the period. Industry revenue is expected to fall at an annualised 1.1% over the five years through 2017-18, to $5.6 billion. High local wages and overheads compared with overseas producers have prompted many firms to relocate processing facilities offshore or consolidate operations and reduce costs. High labour and compliance costs have undermined the international competitiveness of local players. Industry revenue is expected to grow by 2.2% in 2017-18, in part due to rising demand from India.Imports have surged as a share of domestic demand over the past five years. A...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
-1.1%
Forecast Growth 18-23
Profit
Employment
13,952
Businesses
572

Industry Threats & Opportunities

  • The industry has struggled with increasing external competition over the past five years
  • Domestic demand for processed fruit and vegetables has trended down over the past five years
  • Australian fruit and vegetable processors are forecast to face greater regulatory restraints
  • Industry Report - Industry Key Buyers Chapter

    The Fruit and Vegetable Processing industry exhibits low market share concentration. A mix of small, medium and large firms operate in the industry. Only 21.3% of industry operators generate revenue of $2.0 million or more per year, while another 35.8% earn between $200,000 and $2.0 million. The low market share concentration is due to the multitude of products included in the industry, with some firms manufacturing in smaller volumes and targeting niche markets. The largest four players account for less than 40% of industry revenue and are mostly subsidiaries of multinational firms. Many local processing facilities are struggling to achieve or maintain economies of scale, which precludes major players from acquiring a greater proportion of industry revenue...purchase to read more.

    Additional Insights for the Fruit and Vegetable Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fruit and Vegetable Processing Industry are

  • Marketing of differentiated products
  • Management of seasonal production
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Domestic price of fruit and Domestic price of vegetables in the Fruit and Vegetable Processing industry impact industry performance..

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    What's in this report

    What is the Fruit and Vegetable Processing Industry?

    Industry firms primarily process, bottle, can, preserve, quick-freeze and quick-dry fruit and vegetables. The industry includes dehydrated vegetable products, soups, sauces, pickles, mixed meat and vegetable products, and non-milk based baby foods. Sun-dried products are not included in the industry.

    Industry Products
  • Frozen, packaged and pickled vegetables
  • Sauces and condiments
  • Frozen, dried and shelf-stable fruit
  • Soups
  • Baked beans and canned spaghetti
  • Other products
  • Industry Activities
  • Soup making
  • Fruit and vegetable based condiment production
  • Shelf-stable fruit production
  • Fruit drying and freezing
  • Vegetable freezing
  • Shelf-stable vegetable production
  • Pickling of fruit and vegetable products
  • Other fruit and vegetable processing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of fruit
  • Domestic price of vegetables
  • Demand from supermarkets and grocery stores
  • Trade-weighted index

  • Current Performance
  • Consumer demand
  • Supermarket reliance
  • Import competition
  • Production and prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Export markets
  • Consumption trends
  • Increasing regulations
  • Table: Fruit and Vegetable Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit and Vegetable Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Fast Food and Takeaway Food Services
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Apple, Pear and Stone Fruit Growing
  • Citrus Fruit, Nut and Other Fruit Growing
  • Grape Growing
  • Outdoor Vegetable Growing
  • Plastic Bottle Manufacturing

  • Products & Services
  • Frozen, packaged and pickled vegetables
  • Sauces and condiments
  • Frozen, dried and shelf-stable fruit
  • Soups
  • Other products
  • Baked beans and canned spaghetti
  • Chart: Fruit and Vegetable Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Supermarkets
  • Grocery wholesalers
  • Food-service providers
  • Other food manufacturers
  • Chart: Major Market Segmentation for the Fruit and Vegetable Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Utilities and rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Fruit and Vegetable Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit and Vegetable Processing Industry

  • Industry Globalization
    Simplot Australia (Holdings) Pty Limited, Heinz Wattie's Pty Ltd, Coca-Cola Amatil Limited,
  • Table: Simplot Australia (Holdings) Pty Limited - financial performance
  • Table: Heinz Wattie's Pty Ltd - financial performance
  • Table: Coca-Cola Amatil Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit and Vegetable Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fruit and Vegetable Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Pet Containers
  • Commonly used product packaging made from thermoplastic polymers.
  • Private-Label Products
  • Products that are sold under the retailer's own label. These products are typically cheaper, as there are less or no marketing costs involved.
  • Shelf-Stable
  • Products that are stored in tins, cans or plastic containers that do not require refrigeration.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit and Vegetable Processing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fruit and Vegetable Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fruit and Vegetable Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fruit and Vegetable Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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