Poor harvest: Fierce external price competition has stifled industry revenue growth

Despite rising national fruit and vegetable consumption, industry retailers have weathered difficult trading conditions over the past five years. Fierce price competition and inconsistent availability of produce have constrained industry revenue. Extreme weather events, such as droughts, floods and cyclones, have disrupted the supply of various fruits and vegetables at different times over the past five years, and prices have fluctuated accordingly. Industry revenue is expected to grow at an annualised 0.6% over the five years through 2016-17. Rising fruit and vegetable consumption, coupled with higher retail prices, is expected to boost revenue by 0.8%, to reach $3.7 billion in 2016-17.The industry has faced a difficult operating landscape over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Fierce price competition and inconsistent produce availability have constrained revenue
  • Rising health concerns have prompted increased consumption of both fruit and vegetables
  • Strong price competition will likely discourage players from expanding their operations
  • Industry Report - Industry Products Chapter

    The industry sells a variety of fruit and vegetables. The type of produce sold varies throughout the year, with retailers stocking higher quantities of particular fruits or vegetables when they are in their peak growing season. Vegetables account for the majority of industry revenue, due to the substantially higher quantities produced. In general, demand and consumption of fruit are more susceptible to price movements than vegetables.Apples and pearsApples and pears are staple fruits for many households. Common varieties of apples include Red Delicious, Pink Lady, Granny Smith, Fuji and Gala. Common pear varieties are Packham, Josephine and Williams. Apple production has increased over the past five years. Thi...purchase to read more.

    Additional Insights for the Fruit and Vegetable Retailing Industry

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

  • Proximity to key markets
  • Access to highly skilled workforce
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Apparent fruit and vegetable consumption and Demand from supermarkets and grocery stores in the Fruit and Vegetable Retailing industry impact industry performance..

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    What's in this report

    What is the Fruit and Vegetable Retailing Industry?

    Industry operators primarily retail fresh fruit and vegetables.

    Industry Products
  • Potatoes
  • Tomatoes
  • Other vegetables
  • Apples and pears
  • Bananas
  • Stone fruit
  • Other fruit
  • Industry Activities
  • Fresh fruit retailing
  • Greengrocery operations
  • Fresh vegetable retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Apparent fruit and vegetable consumption
  • Demand from supermarkets and grocery stores
  • Domestic price of fruit
  • Domestic price of vegetables
  • Real household disposable income

  • Current Performance
  • Consumer spending grows
  • Health concerns drive consumption
  • Volatile conditions and prices
  • Supermarket price wars escalate
  • Profit margins decline
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption on

    the rise

  • Growing incomes stimulating demand
  • Rising prices
  • Competition from supermarkets continues
  • Table: Fruit and Vegetable Retailing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Pubs, Bars and Nightclubs
  • Social Clubs
  • Restaurants
  • Cafes and Coffee Shops
  • Consumers

  • Key Selling Industries
  • Fruit and Vegetable Wholesaling

  • Products & Services
  • Other vegetables
  • Other fruit
  • Apples and pears
  • Stone fruit
  • Potatoes
  • Bananas
  • Tomatoes
  • Chart: Fruit and Vegetable Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest household income quintile
  • Fourth household income quintile
  • Third household income quintile
  • Second household income quintile
  • Lowest household income quintile
  • Chart: Major Market Segmentation for the Fruit and Vegetable Retailing 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 Fruit and Vegetable Retailing

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit and Vegetable Retailing 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 Retailing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A term describing food produced without the use of chemicals, herbicides or growth hormones.
  • Point-Of-Sale
  • A system used at check-out points at retail stores to capture data at the time and place of sale.
  • Radio-Frequency Identification
  • Electronic-tagging technology that uses a wireless radio system.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit and Vegetable Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Retailing:
    • 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 Retailing 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 Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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