Spice up your life: Demand for premium products prompts entry of niche manufacturers

Operators in the Tea, Coffee and Other Food Manufacturing industry produce a range of food products. Tea and coffee are expected to account for just over 20% of industry revenue in the current year. Industry operators also generate a significant amount of revenue from producing prepared meals, salt, yeast, and herbs and spices. Rising health consciousness, growing disposable incomes, volatile input prices and international trade have influenced industry revenue over the past five years. These factors have aided some products at the expense of others. Overall, industry revenue is expected to increase at an annualised 2.0% over the five years through 2018-19, to be worth $6.0 billion. This trend includes expected growth of 0.6%...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 14-19
2.0%
Forecast Growth 19-24
Profit
Employment
12,989
Businesses
1,100
Market Share of Companies

Industry Threats & Opportunities

  • Growing demand for premium Australian products abroad has greatly boosted exports
  • Tea producers have benefited from rising health consciousness over the past five years
  • Steady growth in real household disposable income is forecast to support tea and coffee purchases
  • Industry Report - Industry Products Chapter

    Firms in the Tea, Coffee and Other Food Manufacturing industry produce a mix of food products, ranging from tea, coffee and frozen pre-prepared meals to hops, yeast and gelatine. Many industry players are involved in only one product segment. This trend adds to the industry's fragmented nature.CoffeeCoffee is the industry's largest individual product segment. Sustained coffee consumption and the constant introduction of higher margin premium coffee products, including fair-trade coffee, hand-ground coffee, coffee pods and new at-home barista style instant coffee offerings has supported this segment over the past five years. As a result, this segment has increased as a share of industry revenue over the period...purchase to read more.

    Additional Insights for the Tea, Coffee and Other Food Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Tea, Coffee and Other Food Manufacturing are:

  • Access to niche markets
  • Economies of scale
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Real household disposable income in the Tea, Coffee and Other Food Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tea, Coffee and Other Food Manufacturing Industry?

    Industry companies manufacture food products that are not classified elsewhere, such as coffee, tea, dressings, seasonings, flavourings, herbs, spices, yeast, yeast extracts, honey, salt and prepared meals. Industry manufacturers procure raw materials and process them into various finished products that are subsequently sold to domestic and export markets.

    Industry Products
  • Coffee
  • Tea
  • Herbs and spices
  • Yeast
  • Prepared meals
  • Salt
  • Other products
  • Industry Activities
  • Coffee
  • Tea blending and
  • Food flavourings and dressings
  • Blended honey
  • Prepared meal
  • Cooking and table salt
  • Herb and spice
  • Yeast and yeast extract
  • Health supplement
  • Jelly crystal
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Real household disposable income
  • Demand from general line grocery wholesaling
  • Trade-weighted index

  • Current Performance
  • International trade
  • Consumer preferences
  • Tea and coffee
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Supermarket private-label brands
  • Profitability and participation
  • Tea and coffee
  • Table: Tea, Coffee and Other Food Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tea, Coffee and Other Food Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread Production
  • Cake and Pastry Manufacturing
  • Chocolate and Confectionery Manufacturing
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Agribusiness
  • Food Processing Machinery Manufacturing
  • Organic Farming

  • Products & Services
  • Other products
  • Coffee
  • Prepared meals
  • Herbs and spices
  • Tea
  • Salt
  • Yeast
  • Chart: Tea, Coffee and Other Food Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Retailers
  • Wholesalers
  • Other domestic markets
  • Chart: Major Market Segmentation for the Tea, Coffee and Other Food Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tea, Coffee and Other Food Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tea, Coffee and Other Food Manufacturing Industry

  • Industry Globalization
    Simplot Australia (Holdings) Pty Limited,
  • Table: Simplot Australia (Holdings) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tea, Coffee and Other Food Manufacturing 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 Tea, Coffee and Other Food Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Additive
  • A substance added to a product usually to improve or preserve the product's quality.
  • Coffee Capsules
  • Coffee capsules contain ground coffee beans and a filter and are used to brew coffee using specially designed coffee machines.
  • Private-Label
  • Products manufactured by an external manufacturer but branded by another company.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tea, Coffee and Other Food Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Tea, Coffee and Other Food Manufacturing:
    • 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 Tea, Coffee and Other Food Manufacturing 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 Tea, Coffee and Other Food Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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