Fancy fruit: Growing demand for organic fresh produce has supported industry revenue

Despite rising national fruit and vegetable consumption, industry retailers have faced difficult trading conditions over the past five years. Fierce price competition from the major supermarkets, Woolworths and Coles, has constrained industry revenue growth over the period. However, rising demand for higher value products, such as organic fruit and vegetables, has provided some support for industry operators. Industry revenue is expected to rise at an annualised 0.2% over the five years through 2017-18, to reach $3.9 billion. This includes a projected revenue decrease of 1.8% in the current year, due to intense competition from the major supermarkets.Industry purchase costs have increased over the past five years...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
16,983
Businesses
2,640
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 companies from entering the industry
  • Industry Report - Industry Locations Chapter

    The geographic spread of industry operators is linked to population distribution, as retailers must be located near buyers. As a result, the most populated states of New South Wales, Victoria and Queensland account for over 80% of operators. Fruit and vegetable retailers position themselves where they can maximise consumer traffic. Retailers are generally located in shopping strips or small shopping centres. These locations enable operators to cater for the needs of the local community. The overall geographic spread of industry retailers is likely to remain similar over the next five years. ...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 and root vegetables
  • Tomatoes
  • Other vegetables
  • Apples and pears
  • Bananas
  • Other fruit
  • Industry Activities
  • Fresh fruit retailing
  • Fresh vegetable retailing
  • Greengrocery operations
  • 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 pressure
  • 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
  • Restaurants
  • Cafes and Coffee Shops
  • Consumers

  • Key Selling Industries
  • Fruit and Vegetable Wholesaling

  • Products & Services
  • Other fruit
  • Other vegetables
  • Potatoes and root vegetables
  • Apples and pears
  • Tomatoes
  • Bananas
  • 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
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other
  • 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Organic
  • 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 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 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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